The document outlines two models for entrepreneurial success: The Stage-Gate model breaks the process into stages with "gates" or checkpoints, including idea generation, identifying target markets, securing resources, gaining market access, initial sales, repeat sales, and market expansion. The second model emphasizes being convincing through persuasive arguments and communication skills to attract customers and gain profits through a valuable offer. It stresses communicating enthusiastically and confidently about a good product tailored to the market.

1. ENTREPRENEURSHIP NEW MODELS
AUTHOR: ISIDRE MARCH
ENTREPRENEURHSIP COURSE
2013-2014

2. MODEL 1: ROAD TO SUCCESS IN NEW PRODUCTS AND
INNOVATIONS: STAGE-GATE MODEL
Stage 1: Idea Generation Gate: OK by the company or the entrepreneur

3. MODEL 1: ROAD TO SUCCESS IN NEW PRODUCTS AND
INNOVATIONS: STAGE-GATE MODEL
Stage 2: Identify Market Segment:
In most successful companies prior to define the product they have precisely defined the
profile of the market segment they want to target. The final products are built according
to the tastes and preferences displayed by this segment. As a result, the products are
tailored to the customers, not the other way round.
CHALLENGE: target the best and most suited segment: Filters and criteria
. Degree of insatisfaction of the customers with the existing products
. Growth potential
. Size of the segment
. Possibility to expand to other geographical markets
. Receptiveness to innovation. Openness to new products
FINAL OUTCOME: To be in a position to seize how worthy is the market opportunity.
GATE: choose the
right segments
according to the
assessment criteria

4. Stage 3: Inputs: Resources needed to obtain the new product:
. R&D
. Production facilities
. Specific equipment and tools
. Materials, ingredients, components: Furnishers
. Human resources with the Knowledge required
. Technological advances
FINAL OUTCOME: Final product ready to be launch, with a precisely fixed cost and a
selling price which ensures a satisfactory margin, provided the expected amount of
sales are reached
Gate: Resources to ensure
these inputs are available in
due time and amount
MODEL 1: ROAD TO SUCCESS IN NEW PRODUCTS AND
INNOVATIONS: STAGE-GATE MODEL

5. MODEL 1: ROAD TO SUCCESS IN NEW PRODUCTS AND
INNOVATIONS: STAGE-GATE MODEL
Stage 4: Gain access to the selected segments:
Aim: to effectively reach the customer, to become visible to the final user.
Actions: Determine the marketing tools best suited to the type of product and to the customer:
Communication, promotion,
agreements with distribution channels,
presentations to potential users,…
Stage 5: Sell to the first customers:
This stage involves the company effectively making sales to real customers paying for our products.
The customer made up his mind and decided to give a chance to our product, which is new for him.
The customer is ready to pay the amount we charge for our product.
WARNING: First sales don´t imply the product is a success. The product still could fail if it dislikes the
first users as they will not repeat the purchase and will not recommend the purchase to other
potential customers. Distribution channel might consider removing the product from the shelves.
GATE: Cash generated from sales
to the first customers
GATE: Agreements signed with
final customers or distributors

6. MODEL 1: ROAD TO SUCCESS IN NEW PRODUCTS AND
INNOVATIONS: STAGE-GATE MODEL
Stage 6: Repeat sales:
First customers are pleased with the product and they are ready to repeat and even to recommend to
others. Distributors reinforce their confidence on the product on the basis of good sales achieved.
Stage 7: Enlarge the market:
Possible paths:
. Same product introduced in new markets: Geographical expansion. Internationalization
. Increase the range of products: Broaden the range from the original product in order to conquer
new segments with more tailored products
. New business models: To sell differently to others. Build new ties with the customers
GATE: Achieve the Loyalty of initial
customers + enlarge the customers base
GATE: Successful New product deployment

7. MODEL 2: ROUTE TO A SUCCESSFUL SALE
GOALS:
• Sell more than others
• Gain more profits than others
• Sustainable through time
BASIS for a SUCCESSFUL SALE:
To attract a broad number of customers and convince them your offer holds an
unbeatable value proposition.
BUT HOW?

8. Being CONVINCING, through:
• Persuasive and appealing arguments
• Touching, moving the customers
• Awake the customer interest and curiosity for your offer
COMMUNICATE WELL: through:
. Being enthusiastic
. Self confidence
. Communication skills and style
. Choose the right channel to access the customer
. Good product (but not necessarily the best one)
. Be knowledgeable about your market, customer tastes, competitor products….
So, PUT IN PRACTICE and improve your COMUNICATION SKILLS and STYLE
MODEL 2: ROUTE TO A SUCCESSFUL SALE
YOU NEED