Entrepreneurship Notes

Customer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways. Separate segments if: - needs require and justify distinct offer - reached through different channels - require different types of relationships - are willing to pay for different aspects - have different profitability Customer segment types: Mass market: one large group comprising only one segment Niche market: specific, specialized customer group Segmented: slightly different customer group Diversified: Multiple unrelated customer group Multi-sided markets This blog post is based on my learnings from the course on ‘entrepreneurship’ offered by Maryland Technology Enterprise Institute, University of Maryland through Coursera (2014).

Economic feasibility of producing your anticipated product or service: The best marketed products often outsell the best products if not marketed well. Focus on two very important concepts: understanding the process of personal selling and understanding the pricing of new products & services. Beware of overdesigning the product to the point that the price is beyond your customer. Keep production costs manageable and volume appropriately high. High development and low demand condition equals unprofitable opportunity. Costs include designing, producing, distributing, marketing & supporting the new product. Examine competitor’s financials to help scope your own financial forecasts and goals. Beware of underpricing your product. If offering a comparable level of features, price your product just under the price of competitors. See if your price is high enough to cover costs when fixed costs are large. This blog post is based on my learnings from the course on ‘entrepreneurship’ off...

Exploring and satisfying real market needs: To build a successful new company, you need to introduce a product or service that satisfies customer needs in a better way than competitors, and at a price that fits the business model for your venture. You do not need to meet every customer need imaginable. Focus on the products and services you can create & launch successfully. Understanding customer preferences: 1. Evaluate preferences for new products and services using focus groups & surveys 2. Examine forecast trends and potential adoption patterns to learn about customer preferences 3. When the product is truly new, the customer may not understand his or her own need for it Prime opportunities for new products are usually sources of pain or aggravation: best clue is a customer complaint and another clue is the expression of an unfulfilled wish. Identifying the need is only the start - after that, you need to develop a product or service that meets the need and consider the fut...

A first step in identifying a valuable opportunity is identifying the change or gap that makes the opportunity possible. Types of changes that increase new venture opportunities: Changes in technology: new technology allows for the expansion of new innovations, significant change can create entirely new markets. Changes in social and demographic factors: opens up opportunities for new technology businesses by altering people's preferences and creating demand for things where demand had not existed before, social trend can create new opportunities. Changes in political and regulatory rules: change creates opportunities because it is productivity enhancing. In other cases, changes generated are not productive, but merely shifts value from one set of economic factors to another. This blog post is based on my learnings from the course on ‘entrepreneurship’ offered by Maryland Technology Enterprise Institute, University of Maryland through Coursera (2014).