Business Ideas

Card Set Information

Business Ideas
2011-10-09 06:32:47

chapter 14
Show Answers:

  1. define internal sources
    you get ideas from your own strenghts and weaknesses
  2. define external sources
    you get ideas from opportunities and threats in the outside market
  3. what are internal sources of business ideas
    • 1. skills and hobbies
    • 2. experience
    • 3. research and development
    • 4. customer feedback
    • 5. intrapreneurship
  4. what are external sources of business ideas
    • 1. family and friends
    • 2. state agencies
    • 3. media
    • 4. competition
    • 5. import substitution
  5. what is brainstorming?
    technique used by individuals and businesses to generate ideas.. aim is to encourage creativity and imagination
  6. development process of new product
    • 1. idea generation
    • 2. product/service screening
    • 3. concept development
    • 4. feasibility study
    • 5. prototype development
    • 6. test marketing
    • 7. product launch
  7. what is screening?
    going through all the ideas and picking out the ones that have the greatest potential for development.. done by conducting a SWOT analysis
  8. what is concept development?
    involves writing a detailed essay about the product idea.. USP, look like, purpose
  9. what is a feasibility study?
    investigation into then new product idea to see whether it is actually possible to make the product at a reasonable cost and make a profit... cash flow forecast.. breakeven chart... state agencies provide grants for businesses to carry out feasibility studies into new product ideas
  10. what is a prototype?
    first working model of a new product
  11. what is prototype developement?
    sample product made as an experiment to see whether the product idea actually works in practice and whether it would appeal to customers
  12. what is test marketing?
    launching the product on a small segment of the market and evaluating comsumers response to it
  13. what is product launch?
    full-scale production.. product available for sale in entire market.. company undertakes a marketing campaign