AND MARKET ICT 10 BUSINESS ENVIRONMENT - means a collection of all individuals that is both tangible and intangible
MARKET - A market is any place where two or
more parties can meet to engage in an economic transaction Natural and Physical Environment - This concerns the physical location of a business’ store. The natural environment also pertains to the natural and man-made structures that may enhance the beauty of the location • Demography - This pertains to the number of people living in the area, their age, gender, socio-economic status, family size, religion, and even growth trends. Culture - being the total way of life, ideas and customs of a set of people or society, primarily influence the types of products that are acceptable to a particular locality.
For example, the influence of
the Japanese culture gave rise to minimalist designs. Technology - Technological changes are inventions based on the application of science that create new product or process improvements. Some examples of technological changes are mobile tools that enable online connection, social networks and modern, digital equipment. Economy - This pertains to the management of resources and study of the system of production, distribution, and consumption of goods and services. Government Regulations - The laws and policies of the national and local government units also influence the business operations. Some examples of policies that directly affect entrepreneurs are the imposition or removal of taxes for products, the establishment of economic zones and assistance in product labeling and packaging of products. In addition, improvement of facilities and roads. Product Development • a process of making a new product to be sold by a business or enterprise to its customers. • involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly-defined customer’s needs, wants and/or a market place. In a ½ Crosswise, Think of a product that you can personally make and answer the questions under Concept Development. Give details to your product. Concept development is a critical phase in the development of a product. In Concept this stage, the needs of the Development target market are identified, and competitive products are reviewed before the product specifications are defined. 1. Identify customer needs: Using survey forms, interviews, researches, focus group discussions, and observations, an entrepreneur can easily identify customers’ needs and wants. 2. Establish target specifications: Based on customers' needs and reviews of competitive products, you can now establish target specifications of the prospective new product and/or services. 3. Analyze competitive products - to analyze existing competitive products to provide important information in establishing product or service specifications. Other products may exhibit successful design attributes that should be emulated or improved upon in the new product or service. 4. Generate product concepts - develop a number of product concepts to illustrate the types of products or services that are technically feasible and will best meet the requirements of the target specifications. 5. Select a product concept - Through the process of evaluation between attributes, a final concept is selected. After the final selection, additional market research can be applied to obtain feedback from certain key customers. 6. Refine product specifications: In this stage, product or services specifications are refined on the basis of input from the foregoing activities. Final specifications are the result of extensive study, expected service life, projected selling price among others are being considered in this stage. 7. Perform economic analysis: Throughout the process of product development, it is very important to always review and estimate the economic implications regarding development expenses, manufacturing costs, and selling price of the product or services to be offered or provided. 8. Plan the remaining development project: In this final stage of concept development, you can prepare a detailed development plan which includes list of activities, necessary resources and expenses, and development schedule with milestones for tracking progress. Finding Value to your Product Innovation *Innovation is the introduction of something new in your product or service. This may be a new idea, a new method, or a new device.
Some of the possible innovations for your products are change of
packaging, improvement of taste, color, size, shape, and perhaps price.
Some of the possible innovations in providing services are application of
new and improved methods, additional featured services, and possibly freebies. USP-Unique Selling Proposition is the factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition.
1. Use Empathy 2. Identify Customer Desires 3. Discover customer’s genuine reasons for buying the product. Task 5: Product Conceptualization Directions: In a separate sheet of paper or in your notebook. Develop your own concept of your product or service by using the figures on this page. Use bullets in every stage of product conceptualization in listing important key ideas.
