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Slide 1

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Unit 1
Developing New
Business Ideas
REVISION…read more

Slide 2

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Previous exam topics
· Product trial
· Gross / net profit margins (operating profit)
· External economic effects
· Niche markets
· Break even analysis
· Price, supply and demand
· Debentures
· Sources of finance / start up capital / venture capital
· Market research
· Competitive advantage
· Entrepreneurs
· Stakeholders
· Market positioning / maps
· Management / leadership styles
· Market orientation
· PLC / business structure…read more

Slide 3

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Product trials
· Test marketing of a product to assess likely
demand levels, consideration of how to turn
a product trial into repeat purchases.
· The benefits of product trials.…read more

Slide 4

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Test marketing
· What is a test marketing?
· Test marketing is the launch of a new or improved product
within a tightly defined area in order to measure the actual
sales potential.
· Launching a product nationally is expensive because of
production costs, advertising expenditure and opportunity
cost so many firms will not take the risk of assuming market
research findings will mean successful sales.
· They want to first test a promising idea out in an area that
may be as small as a town or as large as `London'.…read more

Slide 5

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Product trials
· What is a product trial?
· Product trial means the rate at which
consumers in your target market buy or try
your brand for the first time. It forms one of
the three main objectives for a firm launching
a new product:
· 1.) distribution
· 2.) product trial
· 3.) repeat purchase…read more

Slide 6

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Test marketing and product trials
· How is test marketing linked to product
· A firm may initially conduct test marketing in
a limited area of the country. If successful
they will have a clear idea of the rate of
product trial within this area.
· The firm will then attempt to create repeat
purchasing.…read more

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Slide 9

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Slide 10

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