1. Identifying Business Opportunities
Chapter 14
Identifying Business Opportunities

2. Business Ideas
Internal
External

3. AGB inventing the telephone
Internal
Idea Generation
R&D Departments
SWOT Analysis
Brainstorming
Sales Personnel
Employees
Examples
Fiacla Toothpaste
AGB inventing the telephone
Case Study
Cully & Sully

4. Market Research Agencies
External
Competitors
Customers
Market Research Agencies
State Agencies
Market Trends
Import Substitution
Case Study
Ballygowan Water

5. How Can Business Ideas Be Researched?
Market Research, the process of gathering and analysing information about potential market for a product.
Benefits of market research,
Indicates the size of the market
Identifies competitors
Tests Consumer Reaction
Predicts Sales
Reduces risk and saves money

6. Case Study’s of Market Research
Coca Cola Market Research Failure
Top 10 Marketing Failures

7. Types of Market Research
The type of market research chosen will depend on,
What key information is required
The amount of detail and accuracy needed
The costs involved in collecting the data
The time and money available to do the research

8. Desk and Field Research
Desk Research
Field Research
Also known as Secondary Research consists of sourcing information that is already available. For example looking up information on the Central Statistics Office (CSO)
Also know as Primary Research refers to going out and collecting information from the market place (the field). Can be very accurate and include consumer thoughts.

9. Desk Research (Secondary Research)
Accessing information that has already been gathered by others.
Uses books, reports statistics and the internet.

10. Sources of Desk Research
Reports and Statistics
The Internet
Newspapers and Magazines
Experts
Feedback
Commercial Market Research Companies

11. The benefits and limitations of desk research
Advantages
Disadvantages
Available quickly
Too general and lack detail
Low cost
Data may be out of date
The benefits and limitations of desk research

12. Field Research (Primary Research)
Refers to where the information is collected by going out into the market place (The Field).
Can be very accurate and contain thoughts of consumers.

13. Sources of Field Research
Observation
Consumer Surveys
Questionnaires
-Multiple Choice
-Open ended questions
-Closed questions

14. http://study.com/academy/lesson/how-observational-field-research-are-used-to- collect-data.html

15. Stages in Developing New Product or Service
Idea Generation
Production & Launch
Product Screening
Test Marketing
Concept Development
Prototype Development
Feasibility Study

16. Idea Generation
- Idea generation comes from the Internal and/or external sources of new business ideas.

17. Product Screening
Selecting and sorting the most promising product/service from the weak ones.
Are products,
Unrealistic
Have some potential
Worth further investigation

18. Concept Development
Turning an idea/product into a realistic concept that will appeal to customers and also be different from rivals.
A USP (Unique Selling Point) is a feature of a product/service that makes its attractive and different from an organisations rivals.

19. Feasibility Study
An investigation into how realistic it will be to produce a product, its cost, how many will sell and can a profit be generated.
Contains elements of Desk and Field Research

20. Prototype Development
A prototype is sample product manufactured on an experimental basis to see if the design works in practice and appeal to customers.

21. Test Marketing
- Test Marketing involves launching a product on a small scale to evaluate consumer reaction to it.

22. Production & Launch
If a product passes the marketing stage , then full scale production can begin.
The target market will determine the price, where it is to be sold, and the best marketing strategy to use.

23. Break-even Analysis
A break-even analysis can help identify the likely profitability of a business idea.
Fixed Costs (Costs remain the same)
Variable Costs ( Costs vary depending on the number of products produced)
The break-even point (Sales that must be achieved to cover costs and break-even)

24. Finding the break-even point
Fixed Costs (€4,000) Variable Costs (€20 per bag) Sales price per unit (€100 per bag)
Formula
Fixed Costs
Price per unit less cost per unit
€4,000
€100 - €20
= 50
Therefore we need to sell 50 bags to breakeven

25. Now You Try!
Calculate the Break-Even Point
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