Market Analysis

Conducting market survey is

essential to determine the demand of the product to be offered.

Sources of New Product/Services

1. Consumer

2. Existing Products and Services

3. Distribution Channels

4. Government (Patent office)

5. Research and Development

Consumer

monitor potential ideas and needs from customers and formally arrange for consumers to express their opinions.

Existing Products and Services

analysis of products/services uncovers ways to improve offerings.

Distribution Channels

channel members can help suggest and market new products

Government

files of Patent Office can suggest new product possibilities. New product can be come up in response to govt. regulations.

Research and Development

conduct research on your market and your customer needs

Methods of Generating New Products/Services

1. Focus Group

2. Brainstorming

3. Problem Inventory Analysis

Focus Group

A moderator leads a group of 8 to 14 participants through an open, in-depth discussion in a directive or nondirective manner.

Brainstorming

Good ideas emerge when the brainstorming effort focuses on a specific or market area.

Problem Inventory Analysis

Consumers are provided with a list of problems and are asked to identify products that have those problems.

Rules of brainstorming:

1. No criticism of ideas or suggestion. Non-feasible idea is accepted.

2. Freewheeling discussion is encouraged.

3. Quantity of ideas is desired.

4. Combinations and improvements of ideas are encouraged.

Generating New Product/Services for Conventional or Innovative Businesses

1. Conventional business scenario

2. Innovative business scenario

Conventional business scenario

a. Start a business that you are familiar with.

b. Start a business due to the needs of existing business contacts.

c. Gain business inspiration from your hobby or interest.

d. Gain inspiration from an imported item.

e. Explore the possibility of import business

Innovative business scenario

a. Gain inspiration from the needs and wants of customers.

b. Gain inspiration from the problems and issues that bothered you and your peers.

c. Study the usual or existing solutions and venture in the alternative solution.

d. List down existing products and find out their uses aside from what was stated.

Survey of Market Size and Value

The following assumptions need to consider:

1. Are the people interviewed really representative of all potential consumers?

2. Was the number of people interviewed enough?

3. Were people giving accurate information?

Sample questionnaire of about Market Size and Value

Market Share and competition

Market survey and the calculation of market size and value are important to find out whether the demand of product really exist.

Market Share

an estimate proportion of the total market that a new business could reasonably expect to have.

Market Share and competition example

Competitors

are very important to the success or failure of new business.

Types of Competitors

-General competitors

-Type competitors

-Brand competitors