Becoming a Successful Entrepreneur In order to achieve success in a venture you

Becoming a successful entrepreneur in order to

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innovators. Becoming a Successful Entrepreneur In order to achieve success in a venture, you must not only possess the characteristics and skills discussed in Lesson 14, but also have a great idea. Successful entrepreneurs envision or determine what people need or want, and provide it. They perceive consumers’ problems as opportunities. In Lesson 12, you learned about the role of marketing research. Nowhere does marketing research play a more important role than in determining consumer needs, wants, and problems. In order to gauge the potential success of a venture, you should be very specific as to what consumer problems the venture solves or what consumer wants and needs it fulfills. Two major marketing- research tools to help you do this are called market segmentation and product mapping.
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Lesson 15, page 18 Introduction to Business BBI2O-B Copyright © 2008 The Ontario Educational Communications Authority. All rights reserved. Market Segmentation Market segmentation predicts the potential market for any product or service in terms of common characteristics of the product, the consumer, or both. For example, if you examine the dessert market, you could define it in terms of baked goods, such as cakes, pies, and cookies, and non-baked goods, such as puddings, gelatine desserts, fresh fruit, and so on. You could also segment the market into the type of consumer who eats dessert, collecting demographic data on the typical consumer, such as age, gender, income level, and educational background. You could instead collect psychographic data, which measures the values, attitudes, and lifestyles of the typical consumer. The more narrowly you define the market, the more you can create a venture that will meet consumer needs. If, for example, you have a recipe for oatmeal raisin cookies that have fewer carbohydrates than most cookies, and you have created a profile of the typical low-carb dessert buyer/consumer that indicates a preference for oatmeal raisin cookies, you can be fairly sure that you have a potentially successful venture idea. By segmenting the market, entrepreneurs can also determine their competition. How many other oatmeal-raisin-cookie makers are targeting consumers who want low-carb desserts? What other consumer segments might enjoy these cookies? Most segmenting questions require skilful and detailed marketing research to answer, but the answers will provide information about whether the venture has a good chance for success or not. It is almost like a matching game. Here, for example, are some of the types of cookie-product segments, the various cookie markets, and some possible cookie consumers. Try to match one with the other. (There are no right or wrong answers.)
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Introduction to Business BBI2O-B Lesson 15, page 19 Copyright © 2008 The Ontario Educational Communications Authority. All rights reserved.
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