1. Assessing the viability of business ideas
Business management 2B – chapter 4

2. Step 1 – who are our customers?
Who are our customers and what are their needs?
This entails a needs analysis

3. What does each feature offer the customer?
Needs analysis
What are the features?
What does each feature offer the customer?
Who is in the market already?

4. Who are the possible customers? Group them according to criteria
Customer profile
Who are the possible customers?
Group them according to criteria
What do we know about them?
Age, income, lifestyle etc

5. Market segmentation
Geographic – by area
Demographic – by income, sex, age, education, race etc
Benefit – by benefit the will receive
Psychographic – by specific lifestyle or consumer status

6. Step 2 – mission statement and objectives
Define the mission
Set SMART objectives
See page 41 for example

7. Step 3 – calculate the market share
Who is your target market?
Total market potential – Competitors share = Target market
Do a SWOT analysis
What can the market absorb?
What is already being sold
Difference is your potential (maximum) market share