1. OPPORTUNITY IDENTIFICATION Dr. Dawne Martin MKTG 241 January 24, 2012

2. Learning Objectives Review the Opportunity Identification paper To discuss Entrepreneurial Marketing Review “discovery skills” identified in the HBR article “The Innovator’s DNA”, December 2009 Determine how to identify and evaluate business opportunities For next time – Turn in Opportunity Identification Building a Business Model Reading Rethinking Marketing Chapter 3

3. One-Page Opportunity Identification Due: Thursday, January 27, 2011 Trends: Identify, document and describe trends relevant to the opportunity – cite your sources of information http://guides.lib.k-state.edu/content.php?pid=248068 Opportunity: Describe the opportunity, including industry, business model and target market Justification: Expand on trends and how the trends suggest this opportunity

4. Identifying Good Business Opportunities: Dig deep and ask questions What frustrates customers or users of this industry? Some of the best ideas come from looking at things that bug you, including not having enough options or selection, not getting the product or service quickly enough, and poor quality. What should businesses be making, providing, selling in this industry that many are not yet doing? What do you believe customers will want three to six months from now, one year from now, that they can’t find today? What have you experienced as a consumer of this industry? How would you do business differently? What would you change based on what you experienced? What does everybody think "won’t work" in this industry? Asking questions about what others have thought impossible is a great way to get new ideas. Lisa Gundry, PhD Co-author with Jill Kickul of Entrepreneurship Strategy: Changing Patterns in New Venture Creation, Growth, and Reinvention

5. What Makes a Good Opportunity Does your idea addresses an unmet need in the marketplace? Does my idea correct an inefficiency in the market? Is the market for it real? (i.e. Are there customers willing to buy it? And at what cost?) Who are my competitors, and what are they doing? Is this industry growing, and how hard is it to enter? Do I have the resources and capability (or at least the power to bring those pieces together) to carry out this idea? Read more: http://articles.businessinsider.com/2010-01-28/strategy/30045097_1_new-business-wharton- school-business-opportunity#ixzz1kL8T1ET8http://articles.businessinsider.com/2010-01-28/strategy/30045097_1_new-business-wharton- school-business-opportunity#ixzz1kL8T1ET8

6. The Innovator’s DNA Dyer, Gregersen & Christensen, Harvard Business Review, Dec. 2009 Senior executives in most innovative companies take responsibility for creative work – spend 50% of time in “discovery skills” Discovery skills Associating Questioning Ask “Why?”, “Why not?”, “What if?” Imagine opposites Embrace constraints

7. Innovator’s DNA (continued) Discovery Skills (continued) Observing: potential customers, suppliers, competitors Experimenting Intellectual exploration Physical tinkering Engaging new environments Networking : with diverse individuals

8. Identifying Good Business Opportunities: Dig deep and ask questions What frustrates customers or users of this industry? Some of the best ideas come from looking at things that bug you, including not having enough options or selection, not getting the product or service quickly enough, and poor quality. What should businesses be making, providing, selling in this industry that many are not yet doing? What do you believe customers will want three to six months from now, one year from now, that they can’t find today? What have you experienced as a consumer of this industry? How would you do business differently? What would you change based on what you experienced? What does everybody think "won’t work" in this industry? Asking questions about what others have thought impossible is a great way to get new ideas. Lisa Gundry, PhD Co-author with Jill Kickul of Entrepreneurship Strategy: Changing Patterns in New Venture Creation, Growth, and Reinvention

9. What Makes a Good Opportunity Does your idea addresses an unmet need in the marketplace? Does my idea correct an inefficiency in the market? Is the market for it real? (i.e. Are there customers willing to buy it? And at what cost?) Who are my competitors, and what are they doing? Is this industry growing, and how hard is it to enter? Do I have the resources and capability (or at least the power to bring those pieces together) to carry out this idea? Read more: http://articles.businessinsider.com/2010-01-28/strategy/30045097_1_new-business-wharton- school-business-opportunity#ixzz1kL8T1ET8http://articles.businessinsider.com/2010-01-28/strategy/30045097_1_new-business-wharton- school-business-opportunity#ixzz1kL8T1ET8

10. The Innovator’s DNA Dyer, Gregersen & Christensen, Harvard Business Review, Dec. 2009 Senior executives in most innovative companies take responsibility for creative work – spend 50% of time in “discovery skills” Discovery skills Associating Questioning Ask “Why?”, “Why not?”, “What if?” Imagine opposites Embrace constraints

11. Innovator’s DNA (continued) Discovery Skills (continued) Observing: potential customers, suppliers, competitors Experimenting Intellectual exploration Physical tinkering Engaging new environments Networking : with diverse individuals

12. Faith Popcorn:EN-GEN 2011: Faith Popcorn’s BrainReserve Predictions EN-GEN: End of traditional gender roles – neither males nor female, just human Trends Women hold 51% of managerial & professional jobs 4 of 10 mothers are primary breadwinners, bring in close to ½ household income Single, childless women under 30 earn 8% more than male peers Number of women with 6 figure salaries increased by 14% in last two years Women’s health following men – increase in chance of heart attacks, heart surgery

13. Gender Turning Points: Opportunities Merger of Artistry & Technology – simple, elegant design (Nespresso) Beyond the Bento Box – men & women experiment with interests and ideas normally associated with other gender Electric Shock: Electric vehicles combine women’s concerns for environment with men’s love of technology Recession Lift: Economy has made it difficult for men 45+ to compete – boom in male plastic surgery Veganomics: More sensitivity to sources of food and consumer products leads to growth in vegan values in all areas (bamboo floors, MooShoes) Robot Frenzy: Breakthroughs in robot technologies in medicine, manufacturing, prosthetics, military and more

14. The Entrepreneurial Construct Entrepreneurial Marketing (EM) Integrative construct for conceptualizing in an era of Change Complexity Chaos Contradiction Diminishing resources One that evolves as a company ages and grows Matching human imagination with human aspiration To create markets for goods and services that did not exist Customer focus Continuous innovation Leading not following © 2009 Prentice HallRethinking Marketing, 1st Edition 2-14

15. Underlying Dimensions of Entrepreneurial Marketing Proactive orientation Take action to influence events Opportunity obsessed Recognition and pursuit of opportunity Active search and discovery External focus and environmental scanning “Escape tyranny of the served market” © 2009 Prentice HallRethinking Marketing, 1st Edition 2-15

16. Customer intimacy Customer equity Visceral relationship Emotional dimension Relationship is dyadic Relentless innovation Opportunity identification Concept generation Technical support Creative augmentation © 2009 Prentice HallRethinking Marketing, 1st Edition 2-16 Entrepreneurial Marketing

17. Calculated Risk taking Identify risk Mitigate or share risk Manage resources so they can be Quickly committed Quickly withdrawn Examples Collaborative marketing with other firms Joint development projects Creative test marketing Working with lead customers © 2009 Prentice HallRethinking Marketing, 1st Edition 2-17 Entrepreneurial Marketing

18. Resource leveraging Doing more with less Using other resources to obtain your purpose Exceptional value creation Discover untapped sources of customer value Create unique combinations of resources to produce value © 2009 Prentice HallRethinking Marketing, 1st Edition 2-18 Entrepreneurial Marketing

19. Interactions Among Components and Ongoing Dynamics Distinction between Sinking the boat Missing the boat Marketing efforts within firms develop over time Moving through stages More formalized Strategic Sophisticated Integrated © 2009 Prentice HallRethinking Marketing, 1st Edition 2-19

20. Market-driven or Market-driving: Strategic Choice or Part of the DNA Market-driven—meeting the needs of the customer Attract IBM Canon Market-driving—creating the needs of the customer Shape the structure, preference, behavior Body Shop IKEA © 2009 Prentice HallRethinking Marketing, 1st Edition 2-20