The document outlines the essential components of defining a business concept, which is a cohesive set of ideas for creating and delivering market value. It emphasizes the importance of developing a unique business model that addresses customer needs and effectively positions products or services. Additionally, it highlights the necessity of conducting thorough research in various areas like industry, market, and competition to ensure the business concept's success.

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Defining a Business Concept

2. Overview of the Chapter:
Every idea is not the business concept. Ideas are alike
dreams. So every dream is not concept.
Simply A business concept communicates to others the
precise nature of the proposed venture.
More formally a business concept is a set of cohesive
ideas about how to create and deliver value to market.
The concept should be Simple, Precise and Cohesive.
 Entrepreneurs do not need a lot of ideas. They need
just one idea that can be developed into a business
concept and become a reality.
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3. Components of a Business Concept/
Business Model
 Products/ Services
 Market/ Customers
 Positioning/ Market Reaching
 Distribution (How products or services will be
delivered)
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4. Defining Products and Services
 Solve a Problem or Fulfill a Need (Physical
Features/Benefits features)
 Identify the Uniqueness of a Product/Service
 Prove That the Product/Service Works (Large Screen
TV)
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5. Identifying and Learning About the Customer
 Customers
 Recognize Customer Roles
 User
 Decision maker
 Buyer
 Influencer
 Gate keeper
 Create a Customer Profile
 Details of user group, demography, psychograph
 Helps to locate and communicate customers
 Based on usages of the product
 when the customer is a business demography- income, number of
employees etc.
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6. Reaching the Market
1. Strategic Positioning:
-Provide a unique product/ services
-Unique combination
-Unique way for same product
2. Strategy Traps to Avoid:
-Misreading Industry trend
-Thinking everyone is Potential customer
-Percentage of target market
-Having no real competitive advantage
-Relying on gut feelings rather than facts
-Having unrealistic expectations
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7. 3.Product Distribution Models
4.Service Distribution Models
5. Combined Product and Service Businesses
 Motorbike, smartphone distribution, home appliance etc.
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8. Conducting Research
 Purpose of Research
 Concept development
 To complete business plan
 Market potential evaluation
 Types of Research
- Primary Research
- Secondary Research
Or
- Basic research
- Applied research
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9. Five areas to research
The entrepreneurs will conduct research for the business
plan in five areas:
 Industry
 Market
 Competition
 Financial
 Legal
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10. Primary research
 Customer surveys
 Ask the customer about product/ service
 Preview of product to the potential customer
 Focus group discussion
 Additional customer insight
 More information cheaply
 Valuable insight obtained
 Skilled mentor is needed
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11. Business Concepts
 Attributes of Successful Business Concepts
 Involves significant savings
 Solves a serious problem
 Offers convenience
 Attract media attention
 Clearly identify the market
 Captures monopoly
 Promises a big upside and a low downside
 Fatal Flaws of Business Concepts:
-No real need
- Hidden Traps
- Unfortunate economics
- No protection
- Obsolescence
- Requires changes in consumer behavior
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