Course

Year

:ENTR6003 Entrepreneurship I
: 2016

MARKET OVERVIEW &

IDEA GENERATION
Session 2
F2F

Learning Objectives

LO 1: Identify Entrepreneurs Personality and Innovative Business Idea

LO 2: Analyze Business Model and Business Model Environment

Sub Topics

1.
2.
3.
4.
5.

Market Overview What Customers Need

Market Research How to Conduct It
Generating Idea based on Market Research
Creating and Innovating Based on What Market Needs
Entre Expo overview

Market Overview
What Customer Needs

Shifting the Perspective!

YOU
(yourself)
organizationcentric
Business model
design

THEM!
customer-centric
Business model
design

YOU (Yourself)
Organization-centric Business Model Design
The Questions would be:
What can we sell to customers?
We were the one who decided what to sell.
How can we reach customers most efficiently
We decided the method that we were going to
use to
get in touch with the customers.

We
Cust PUT
What relationship do we need to establish th omers
as
e PA
S
with customers?
S
part
y, in IVE
We decided what kind of relationship that weof ta
s
king tead
wanted to have with the customers.
as th
th
e pa em
our
busi rt of
How Can we make Money from our
ness
!
Customers?
We decided how customers would give us the
benefits

Them!
Customer-centric Business Model Design

The questions would be:

What job(s) do(es) our customer need to get
done and how we can help?
What are our customers aspirations and how
can we help them live up to them?
All d
How do our customer prefer to be
ecis
ions
t
hat
addressed?
w
e
goin
How do we, as an entreprise, best fit into
g to are
wou
ld be make
their routines?
mad
What relationship do our customers expect based
e
on
CU S
TOM
to establish with them?
OPIN ERS
For what value(s) are customers
I O N!
truly willing to pay?

How Can We Understand

the Customers Perspective?

The
Empath
y Map

How to Use the Empathy Map?

1. Brainstorm to come up with all the possible Customer Segments that you might want to serve
using your business model.
2. Choose three promising candidates, and select one for your first profiling exercise.
3. Start by giving this customer a name and some demographic characteristics, such as income,
marital status, and so forth.
4. Referring to the diagram on the opposite page, use a flipchart or whiteboard to build a profile for
your newly-named
5. w
hat i
1. customer
s the
p
by
asking
and
answering
the
following
six
questions:
what
a
i
n
y
?
ll
d

cust
oes s
descr
he rea
Wha
he s
om e
ib
does s
t
t
r s
a
a
h
custo e what th ee?
r
w
e
.
3
f
l?
r
h
e
ustr
m
e
er b
nt
d fe
a
n
t
a
r
a
o
i
k
Envir er sees in
g
t
p
ion
gest
thin
Wha
on
ally im
he r
t
t ob s ?
- Wha ment.
at is re h she migh
h
s
W
b
t
a
etwe
t
(whic
- Who does it lo
en h cles stan
to her
she
licly)?
ok lik
b
er a
surro
u
d
.
p
s
y
w
e?
- Who
un
not sa her emotion t
achi ants or nd what
are h ds her?
a
e
h
e
need
- Wha
er frie
Imagin ves her? W
Whic ve?
s to
t
n
t
mo
a
t
is she types of o ds?
h
p
a
u
h
r
r
W
i
e
s
h
f
k
fers
expo
e
s
ar ta
keep
s
oppo
king might sh
might
sed t ed to dai
?
e
ly
o
ofers
all m
night? ribing her
arket (as
)?
c
s
What
4. w
Try de
p
enco roblems d
the
. say hat doe
reams
s
d
n
unter
o
io
oes
t
e
s
a
d
s sh e
a
ir
s
t
p
n
?
s
h
a
d do
h
th e
in?
and a
? im e
6. w
er ga e truly
2. what does she hear?
agin
m
o
cust
t
e wh
cus does sh
o
describe how the
at
how mer mig
t
s
h
Wha
environment infuences
publ he migh t say, o
eve?
ic
ant
r
achi easure
t be
w
o
the customer
t
have
Wha
ed
m
t
in
What do her friends
or ne oes she
Wha is her a
d
tt
t
ies
say?
How ss?
othe could s itude?
rateg
t
s
h
e
r
s
c
e
e
?
be t
m
Her spouse?
suc
Pay
ellin
of so se to
part
k
g
n
i
Who really influences
i
h
u
c
to p
T
ular
ot
ight
m
her, and how? Which
e
betw ential c attentio
sh
o
n
e
eve
media Channels
migh en wha nflicts
achi als.
t
t
a
s
o
ay
cu
are infl uential?
may
her g
truly and wh stomer
at sh
.
th i n
e
k or
feel.

Market Research
How to Do It?

The Process of Market Research

The Process of Market Research

Step 1. Define the Objective & Your Problem
This might be the most important step in the market research process,
Defining the goals of the project.
At the core of this is understanding the root question that needs to be
informed by market research. There is typically a key business problem (or
opportunity) that needs to be acted upon, but there is a lack of information to
make that decision comfortably; the job of a market researcher is to inform
that decision with solid data. Examples of business problems might be
How should we price this new widget? or Which features should we
prioritize?
By understanding the business problem clearly, youll be able to keep your
research focused and effective. At this point in the process, well before any
research has been conducted, I like to imagine what a perfect final research
report would look like to help answer the business question(s). You might even
go as far as to mock up a fake report, with hypothetical data, and ask your
audience: If I produce a report that looks something like this, will you have the
information you need to make an informed choice? If the answer is yes, now
you just need to get the real data. If the answer is no, keep working with your
client/audience until the objective is clear, and be happy about the
disappointment youve prevented and the time youve saved.

The Process of Market Research

Step 2. Determine Your Research Design
Think of the research design as your detailed plan of attack.
Determine yourmarket research method(will it be a survey, focus group, etc.?).
Think through specifics about how you will identify and choose your sample (who
are we going after? where will we find them? how will we incentivize them?, etc.).
Plan where you will conduct your research (telephone, in-person, mail, internet,
etc.).
Your choice of research instrument will be based on the nature of the data you are
trying to collect.
There are three classifications to consider:
Exploratory Research This form of research is used when the topic is not well
defined or understood, your hypothesis is not well defined, and your knowledge of a
topic is vague. Exploratory researchwill help you gain broad insights, narrow your
focus, and learn the basics necessary to go deeper. Common exploratory market
research techniques include secondary research, focus groups and interviews.
Exploratory research is a qualitative form of research.
Descriptive Research If your research objective calls for more detailed data on a
specific topic, youll be conducting quantitativedescriptive research. The goal of
this form of market research is to measure specific topics of interest, usually in a
quantitative way. Surveys are the most common research instrument for descriptive
research.
Causal Research The most specific type of research is causal research,which
usually comes in the form of a field test or experiment. In this case, you are trying

The Process of Market Research

Step3. Design & Prepare Your Research Instrument
In this step of the market research process, its time to design your research tool. If
a survey is the most appropriate tool (as determined in step 2), youll begin by
writing your questions and designing your questionnaire. If a focus group is your
instrument of choice, youll start preparing questions and materials for the
moderator. You get the idea. This is the part of the process where you start
executing your plan.
Step 3.5 should be to test your survey instrument with a small group prior to
broad deployment. Take your sample data and get it into a spreadsheet; are there
any issues with the data structure? This will allow you to catch potential problems
early, and there are always problems.
Step4. Collect Your Data
This is the meat and potatoes of your project; the time when you are administering
your survey, running your focus groups, conducting your interviews, implementing
your field test, etc. The answers, choices, and observations are all being collected
and recorded, usually in spreadsheet form. Each nugget of information is precious
and will be part of the masterful conclusions you will soon draw.

The Process of Market Research

Step5. Analyze Your Data
Step 4 (data collection) has drawn to a close and you have heaps of raw
data sitting in your lap. If its on scraps of paper, youll probably need to
get it in spreadsheet form for further analysis. If its already in
spreadsheet form, its time to make sure youve got it structured properly.
Once thats all done, the fun begins. Run summaries with the tools
provided in your software package (typicallyExcel,SPSS,Minitab, etc.),
build tables and graphs, segment your results by groups that make sense
(i.e. age, gender, etc.), and look for the major trends in your data. Start
to formulate the story you will tell.
Step6. Visualize Your Data and Communicate Results
Youve spent hours pouring through your raw data, building useful
summary tables,charts and graphs. Now is the time to compile the most
meaningful take-aways into a digestible report or presentation. A great
way to present the data is to start with the research objectives and
business problem that were identified in step 1. Restate those business
questions, and then present your recommendations based on the data, to
address those issues.

Example
of Market Research

Genereting Idea
Based on Market Research

Visualize Your Data and

Communicate Results
Youve spent hours pouring
through your raw data,
building useful summary
tables,charts and graphs.
Now is the time to compile the
most meaningful take-aways
into a digestible report or
presentation. A great way to
present the data is to start with
the research objectives and
business problem that were
identified in step 1. Restate
those business questions, and
then present your
recommendations based on
the data, to address those
issues.

This is last step of the

Market Research. It
contains of result.
It represents the opinion
of your potential market.
By using the result of the
market research, you
could decide what kind of
products/services that
would be suitable with
their NEEDS/WANTS

Creating and Innovating

Based on What Markets Need

Switching the Paradigm

YOU
Organization-centric
Business model design
What can we sell
customers?
How can we reach
customers most efficiently?
What relationship do we
need to establish with
customers?
How can we make money
from our customers?

THEM!
Customer-centric
Business model design
What job(s) do(es) our customer
eed to get done and how we can
help?
What are our customers
aspirations and how can we help
him/her live up to them?
How do our customers prefer to be
addressed?
What relationship do our
customers expect us to establish
with them?
For what value(s) are customers
truly willing to pay?

References
Osterwalder, Alexander; Pigneur, Yves (2010). Business
Model Generation: A Handbook for Visionaries, Game
Changers, and Challengers.John Wiley & Sons, Inc. New
Jersey. ISBN: 978-0470-87641-1
http
://www.mymarketresearchmethods.com/the-market-researchprocess-6-steps-to-success
/