Transcript Opportunity Identification

OPPORTUNITY
IDENTIFICATION
Dr. Dawne Martin
MKTG 241
January 24, 2012
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
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
Identifying Good Business Opportunities:
Dig deep and ask questions
• • What frustrates customers or users of this industry? Some of the best
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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
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#ixzz1kL8T1ET8
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
Innovator’s DNA (continued)
• Discovery Skills (continued)
• Observing: potential customers, suppliers, competitors
• Experimenting
• Intellectual exploration
• Physical tinkering
• Engaging new environments
• Networking : with diverse individuals
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
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#ixzz1kL8T1ET8
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
Innovator’s DNA (continued)
• Discovery Skills (continued)
• Observing: potential customers, suppliers, competitors
• Experimenting
• Intellectual exploration
• Physical tinkering
• Engaging new environments
• Networking : with diverse individuals
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
Gender Turning Points: Opportunities
• Merger of Artistry & Technology – simple, elegant design
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(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
© 2009 Prentice Hall
Rethinking Marketing, 1st Edition
2-14
The Entrepreneurial Construct
• Entrepreneurial Marketing (EM)
• Integrative construct for conceptualizing in an era of
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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 Hall
Rethinking Marketing, 1st Edition
2-15
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 Hall
Rethinking Marketing, 1st Edition
Entrepreneurial Marketing
• Customer intimacy
• Customer equity
• Visceral relationship
• Emotional dimension
• Relationship is dyadic
• Relentless innovation
• Opportunity identification
• Concept generation
• Technical support
• Creative augmentation
2-16
© 2009 Prentice Hall
Rethinking Marketing, 1st Edition
Entrepreneurial Marketing
• 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
2-17
© 2009 Prentice Hall
Rethinking Marketing, 1st Edition
2-18
Entrepreneurial Marketing
• 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 Hall
Rethinking Marketing, 1st Edition
2-19
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 Hall
Rethinking Marketing, 1st Edition
2-20
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