Entrepreneurship

Entrepreneurship is the act of setting out on your

own and starting a business instead of working for
someone else
It is most often conflated with small business.
But most entrepreneurial ventures start out as a
small business
Small business have a small number of employees,
and many of these small businesses offer an
existing product, process or service, and they do
not aim at growth.
On the other hand, the entrepreneur typically aims
to scale up the company by adding employees,
seeking international sales, and so on.......a process
which is financed by venture capital and angel

The entrepreneur develops a

business plan, acquires the
human, financial and other
required resources, and is
responsible for its success or
failure.

Market

A market is any medium

through which two or more
parties can engage in an
economic transaction,
even those that do not
necessarily need to
involvemoney.
A market transaction may
involve goods, services,
information,currencyor
any combination of these
things passing from one
party to another in
exchange for one of these
or another combination.

Markets vary widely for a number of reasons,

including the kinds of products sold, location,
duration, size and constituency of the
customer base, size, legality and many other
factors.
For example, the term black marketrefers to
an illegal market. Yet, like markets in general,
a black market can be a physical market where
illegal goods are traded in person or a virtual
market where illegal goods are traded with
relative anonymity.
A variation on this is agrey market, which is
an unauthorized or unofficial locus of trade
through channels that are otherwise legal.

Market research describes the

gathering and analysis of market
data, such as consumer preferences,
trends in market prices and the
presence of competing products.
.

A market survey can describe any

study that gathers information directly
from consumers by asking them
questions about their preferences,
habits and experiences.

The purpose of a market survey is to

provide business managers with insight about
their target customers, such as
how much money they spend on certain types
of products,
whether they use competing products and the

When to conduct market

survey

How to conduct market survey

Market survey

Primary
research
1)Focus
Group
2)Questionnai
re
3)Observatio
n Analysis of Data :
1) Qualitative
4)Interviews
2) Quantitative

Secondary
research
1)Internal
2)
Externa
l

1) Primary research
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Is a kind of market survey which is done by the

business or company itself with the objective of
gathering information that can be used to
improve the products, services and functions.
Also known as field market survey.
It is done without any information ie. Already
made available through other sources.
Gather information through qualitative as well as
quantitative survey techniques.
It is most common type and most valuable type.

Classification :
A) Focus groups

Involves getting a group of people in

a room or place and asking them questions regarding to
the product.

B) Questionnaire

Prepare a list of questions.

Keep questions short and simple as possible.
Move from general questions to more specific questions.

C) Observation

Survey is conducted through

and communication to the customers.

observation

D) Interview
surveys ,

Take face to face interview. Telephone

Mail surveys, Online surveys etc.

2) Secondary research survey - It is opposed to primary market survey.

- This technique does not aim to gather information but

relies on already available information from multiple
sources.
- Survey research focuses on data or information that was
collected by other people.
- Collected information including government data, office
data ,
news papers , Internet etc.
- Takes less time compared to primary.

Types include :
A) Internal : eg. Sales figure, Inventory records
B) External : eg. Gov. sources , universities & colleges

Analysis of Data Qualitative :

Qualitative research gathers views and attitudes towards
your product and services.
Mainly takes into account the opinions and feelings of
customers.
Understanding of customers interest , needs and identify
opportunities for growing sales & improve service.

Quantitative :
Quantitative research gathers numerical data.
It includes surveys on customer return frequency
Sales figure
Financial trends

Steps involved in market survey :

Step1: Define objectives and specify information
to be collected
Identifying sources of information
Assessing time and costs required for the survey
Selecting methodology
Preparing an action plan

Step 2: Select a sample

Determining where to conduct the survey
Determining when to conduct the survey

Step 3: Prepare a questionnaire for the survey

Step 4: Collect data and analyze the information
obtained
Step 5: Prepare a report based on data analyzed

Benefits :
Market survey guides your
communication with current and
potential problems.
Helps you identify opportunities in
market place.
Helps you to minimise risk.
Market research helps you plan
ahead.

Product development
Product development means making changes in- size,
shape,
design,
colour,
shape, characteristics,
packaging etc.
It may include Addition of new product line
Addition of new product item in a particular product line
Elimination of existing product or product line
Changes in size,colour ,design,packagiing etc. prices of
product &
Discontinuation of unprofitable item or porduct line.
A new product is any product which is perceived by the
consumer as being new.

1. Idea generation
The new product development process
starts with the search for ideas.
Ideas may
originate from R&D,
distributors, consumers, employees, etc.
All the ideas may not have immediate
market potential but the firm must always
keep a collection of ideas ready in stock,
because the creation of new product is a
condition of survival in many industries.

 The specific activities performed in

this stage are:
1. Determining the product fields of
interest to the company
2. Establishing a programme for
planned idea generation and
3. Collecting ideas through a organized
work

2. Screening

At this stage , the ideas collected are scrutinised to

eliminate those inconsistent with the product polices and
objective of the firm.some ideas may already be protected
by paitents and some others may not be fit for
consideration because of the non-availability of raw
material for production.
The main intention of this phase is only to elimoinate
unsuitable ideas as quickly as possible.
The procedure adopted includes1. Expanding each idea into full product concept
2. Collecting facts and opinions to decide weather the
product idea could be converted into business proposition
and
3. Assessing each idea for its potential value to the company

3. Business Analysis
It is a continuation phase of screening; at this
stage creative analysis is applied to the idea
finally selected. Product features are analysed and
a rough programme for its development is fixed.
This stage emphasises on1. Further study on each idea in a detailed manner
2. Determining the desirable market features for
the product and its feasibility, and
3. Developing specifications and establishing a
definite programme for the product .

4. Technical Development
During this stage, the idea-on-the-paper is turned into a
product-on-hand.
In other words, the idea is converted into a product that
is producible and demonstrable.
Its during this period that all developments of the
product,from idea to final physical form,takes place.
Once the management decides to go forward with the
product idea,the folloeing activities are undertaken1. Establishing development projects for each product .
2. Building the product with the changed specifications, if
necessary , and
3. Competing laboratory evaluation and realisting the
product for testing .

5.Testing
The object of this stage is basically to assess
whether the product meets the technical and
comercial objectives enisaged in the original
proposal.
There are various tests conducted at various
levels in order to ascertain the product
acceptability. There are 3 types of tests usually
conducted
1. Concept testing
2. Product testing , and
3. Test marketing

a. Concept testing
This is concerned with measuring
customer reaction to the idea or
concept of the product.
The major advantage of the concept
testing is that the management could
form early judgements on the likelihood
of the market success of new ideas.
The other objectives of concept testing
could be-

Objectives of concept testing

Drawbacks of concept testing

1.

1.It entails some risk of disclosing

the company plans to
competitors
2. There is a tine-lag for obtaining
and assessing the results.
3. Respondents may overstate
their interest and encourage
unsound development.
4. The validity of any measure of
potential market size obtained
through early stage concept
testing is often dubious.
5. Findings may be misleading if
the testis not carried out properly.

2.
3.
4.

To evaluate the relative

merits of several new
product proposals.
To determine whether the
product idea is to be
abandoned or modified.
To determine the size of the
potential market.
To guide the management to
adopt suitable marketing
policies in advance.

Product testing
Once the product is successful, the next step is to put real product
into a few selectedmarkets. This test will prove whether the product
performs as expected or whether it lives up to the promise of the
concept. Such test enables the management to pick out the likes and
dislikes of the sonsures towards the product. It also gives an
opportunity to the buyers to compare the product with the
competitive product
Product testing helps1. To assess proper product performance
2. To minimize the risk attached to full-scale launching of a new product
3. To identify the most productive market segments.
4. to collect necessary data of responsiveness from the consumers.
5. However , this is not foolproof system for predicting the future. It
cannit help to forecast the market size, sales volume, brand share,
repeat buying, etc. correct pricing can also not be assessed.

commercialization
In this stage the product is submitted to the market,
and thus commences its life-cucle. Commercialization
is also the phase where marketing is most active in
connective with the new product.this stage is
considered to be critical one for any new product and
should therefore be handled carefully.
It should be checked whether advertising and
personal selling have been done effectively and
wherether proper outlets have been arranged for the
distribution. Despite the care with which the previous
development stage have been planned. Unforeseen
events can impair commercialization seriously.

 The following activities are usually undertaken during this

stage1. Completing final plans for production and marketing
2. Initiating coordinated production and selling programmes
3. Checking results at regular intervals.
It should be remembered that the new products should be
launched in the market only stage by stage. In other
words, introduction may be restricted to a few regions in
the first stage by stagethis is to avoid short supply of the
product due to initial gaps in production and distribution.
It is not prudent to extend a product nationally and then
not be able to meet demand or to come across some
unexpected deficiency.