Marketing

Report 13 Downloads 266 Views

Apr 14, 2016 - BizTech, Sections 7.1 & 7.2. Entrepreneurship 11th Edition p.176; Critical Thinking – Assign students either of the. Critical Thinking Exercises ...

Planning Toolkit and Submission Worksheet NE: I L D EA

ND O I 6 S 1 IS 0 M 2 B SU 14,

IL

APR

presented by

2

Table of Contents Page 3 ...................... Moody’s Information to Innovation Challenge Overview Page 4 ...................... Curriculum to support the challenge Page 4 ...................... Submissions Page 5 ...................... Judging Page 6 ...................... Deadline Page 7 ..................... Frequently Asked Questions Page 9 ...................... Details of the 2016 challenges Page 13 ...................... Submission Worksheet

Activity Sheets ...................... Community Walk (Opportunity Recognition) ...................... Magazine Game (Market Opportunity) ...................... Chocolate Bar Activity (Creating Surveys)

NFTE Curriculum ...................... Chapter 1: Introduction to Entrepreneurship

...................... Chapter 5: Ethics & Social Responsibility

...................... Chapter 7.1: Market Research

...................... Chapter 8: Marketing Your Product

Supplementary ...................... Market Research Case Studies

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

3

Moody’s Information to Innovation Challenge About The Moody’s Foundation Built on the recognition that a company grows stronger by helping others, The Moody’s Foundation works to enhance its communities and the lives of its employees by providing grants and engaging in community service in local neighborhoods. The Moody’s Foundation, established in 2002 by Moody’s Corporation, partners with nonprofit organizations to support initiatives such as education in the fields of mathematics, finance, and economics, as well as workforce development, civic affairs, and arts and culture. For more information, please visit www.philanthropy.moodys.com.

How Does it Work? Moody’s Information to Innovation Challenge, presented by the Network for Teaching Entrepreneurship, is a fun, experiential activity that allows students to think creatively and invent new products or services that address common decision making and risk management skills. All young people aged 14-19 are encouraged to participate to develop their creativity and innovative thinking skills – and win some amazing prizes. It’s a Group Thing: Teams of 2-3 young people aged 13-19 will select an innovation prompt and come up with a new, unique, innovative way to address that challenge. The idea is to create and illustrate a solution that can be used by other students anywhere in the world. The challenge is meant to encourage collaboration, so individual submissions (teams of 1) will not be accepted. Get Creative and Brainstorm: Schools, teachers, students and partner organizations can download a basic toolkit for the challenge that includes curriculum and a set of activities designed to encourage creativity and innovation in preparation for the challenge. We recommend using at least 90 minutes to prepare for the challenge and at least another 90 minutes for brainstorming and completing the online process. Of course, more time spent will result in a more complete submission! Tell Your Story on the Big Screen: Completed submissions are due by April 14, 2016, at 9:00 PM Eastern Standard Time. A panel of judges will select the top 6 submissions in each challenge category. Finalists will then be given a short time to film themselves presenting their solution for our final judging round. Into the Home Stretch: From those top 6 submissions with video, 3 category finalists will be chosen by a committee of elite judges from The Moody’s Foundation. Those top 3 finalists will go head-to-head in a public online vote. There will be 2 winning teams per challenge: the “Adjudicators’ Choice” selected by The Moody’s Foundation judges, and the “People’s Choice”, chosen by popular vote through our online voting platform. Life is Good at the Top: The 2 winning teams from each challenge will receive a prize of $5,000 to share, and a prize of $500 for their school or other non-profit youth serving organization. If a winning team is not affiliated with a school or non-profit youth serving organization, that portion of the prize will be donated to a school or non-profit of their choice. Non-winning finalist teams will receive $1,000 to share, plus a prize of $250 for their school or youth serving organization. NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

4

Curriculum to support the Challenge Entrepreneurship 11th Edition Chapter 1: Introduction to Entrepreneurship Chapter 5: Ethics & Social Responsibility Chapter 7: Market Research (section 1 only) Chapter 8: Marketing Your Product (optional) In-class Activities

• • •

Community Walk-About Activity Magazine Game Chocolate Bar Activity

Supplemental Materials



Market Research Case Studies

Submissions Submissions will take place online at http://moodysi2i.nfte.com. Submissions will consist of five parts as listed below: Name your Innovation Name your Team For each section, check the “Innovation Submission Guidelines” for your challenge before you answer: The Pitch Pitch us your solution to the challenge in 250 words or less. What is your app or game called? Who is your target population? How is your app designed to address this challenge? What makes your product unique? Questions and Features Tell us specifically what questions the survey portion of your app or game will ask, and how the results will be delivered to the user. (300 words) Does your app have any other features or content that help users increase their engagement or understanding? If so, please explain. (150 words) Market Opportunity What are the characteristics of your user population? What makes your solution appeal to them? How will you distribute/market your game or app and where? Please be as specific as possible. Background Research: Are there other products that already exist with a similar purpose? How is yours different, better, or a good supplement to what already exists? Weighing Your Outcome What order will your survey questions go in and why? (300 words) (continued) NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

5

Submissions, continued Some answers may be more important than others. Explain which questions will carry more weight, and how you have reached this decision. (300 words) Show It To The World Here’s your chance to show off your solution. Please upload up to 5 separate images, in order, that show exactly what the interface for your innovative app or game will look like – including the overall concept, a few crucial survey or special features images, and most importantly what the results output will look like. Explain why you used this format or design. Why will this be better than other options you considered? (200 word limit) Please note: The top 6 finalists in each challenge category will be required to submit a video of themselves presenting their solution, during the second phase of the challenge. A submission worksheet is included for you to prepare your submissions.

Judging Submissions will be reviewed by a panel of judges to determine three finalists in each category. Submissions will be evaluated based on: •

The Pitch: 25% of score The submitter provides a clear, concise, and easy to understand description of his or her idea. There is a clear explanation and understanding of how the idea directly addresses the challenge, and who is the target population. Submission idea is unique, innovative, and based on fresh ideas. There is a clear explanation of what makes the project unique. Product/Service name enhances the product/service – requires no explanation.



Questions and Features: 30% of score Submission clearly defines the questions to be posed in the survey portion of the solution, and a thorough description of the ‘scoring’ interface and method of results delivery, reflecting in-depth student engagement with the topic. Submission indicates a clear description of additional features that would help users increase their engagement or understanding.



Market Opportunity: 10% of score Submission indicates research into a clear understanding of consumer characteristics, and a clear distribution plan. Characteristics of the most important benefits are clearly identified. Submission clearly highlights the competitive advantage of the innovative project. (continued)

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

6

Judging, continued •

Weighing the Outcome: 20% of score Submitter provides clear description of the order in which survey questions will be asked. Submission includes a clear, concise, and easy to understand description of reasons behind the ‘weighting’ process by which certain questions carry more weight than others, and indicates student engagement with the scoring process.



Show it to the World: 15% of score Customer interface is engaging, creative, and ensures consumer confidence in an excellent product/service experience. Video presentation engages the audience, and clearly summarizes business description, market opportunity, questions and features, and outcome delivery.

Deadline Submission forms must be completed at http://moodysi2i.nfte.com by 9 p.m. Eastern Standard Time on Thursday, April 14, 2016. Late or incomplete submissions will not be accepted. The top 6 will then be asked to record and submit a video of themselves presenting their innovation idea. From those top 6 submissions, a panel of judges will select 3 finalists in each challenge, one of which will be the Adjudicators’ Choice. From the final 3, the general public will be encouraged to vote for their favorite innovation in each category between May 27 and June 5. The People’s Choice winner will be chosen by the number of valid, individual votes garnered from during the public voting period. The winning submissions will be announced on June 7, 2016.

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

7

Frequently Asked Questions 1.

My school or youth group is not participating in the Moody’s Information to Innovation Challenge yet. How can we get involved? It’s easy to get involved! Just visit our website at http://moodysi2i.nfte.com to pick your innovation category, start brainstorming and creating your submission. Then just make sure to complete all five sections of the online form and submit by the deadline.

2.

Can more than one team from a school or a single sponsoring youth program participate in the Moody’s Information to Innovation Challenge? Yes! Multiple teams from the same school or program may participate. In addition, adults may serve as the organizational representative for more than one team.

3.

How big can our team be? Teams must have 2-3 members. As the challenge is meant to be collaborative, submissions from individual students will not be accepted.

4.

How much time will the Moody’s Information to Innovation Challenge take? You can spend as much time working on it as you like, but we suggest at least 2 50-minute classes (minimum 90 minutes) be dedicated to toolkit activities and background research, plus 2 more 50-minute classes (minimum 90 minutes) devoted to brainstorming about your innovation and the completion of the submission form. We highly recommend attending an Innovation Day event in which you can get a head start on your submission with the help of local volunteers. The more time you spend on it, the better your submission will be!

5.

What is Innovation Day? The purpose of Innovation Day is to give young people the opportunity to complete the challenge in one day with the help of instructors and volunteers from the community. Using the Moody’s Information to Innovation Challenge toolkit, volunteers and/or instructors will guide a group through the content and experiential activities. After covering the content, volunteers and instructors will work with the students to create teams, brainstorm their new innovative ideas and complete the submission forms online. Contact [email protected] to find out more!

6.

Can we enter submissions in more than one category? Yes, but remember you must fully complete all 5 sections of the submission form for each idea you submit. Challenges require some time and effort to ensure quality, so make sure not to over-extend yourselves by trying to do too much! Also, if you want to be on more than one team, you must use a different email address for each one.

7.

Can a group of friends from different schools participate in the Moody’s Information to Innovation Challenge? Sure, as long as there are 2-3 people on each team, and you can identify one adult as your primary contact person, and one school or organization to receive the prize if you win.

8.

What do we need to do to be officially registered as a participating team? Your team leader must register online, invite teammates to join the team, and then work together to complete and submit your innovation by the deadline. Your team leader will receive a response confirming that we have received the submission.

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

8

9.

Are there any registration fees? No, there is no charge to participate in the Moody’s Information to Innovation Challenge.

10. Who is the contact person from our team? Every team requires a Team Leader. The leader is the person who first creates an account and establishes the team. That person’s email address will be used to contact your team. Each team must also provide a name and contact details for an adult at the school or youth serving organization with which it is affiliated. 11. How do we know if we’ve won? Winners will be announced on the website! Your Team Leader and adult contact will also be notified by email. 12. When will the winning innovations be chosen? Submissions are due on April 14, 2016 @ 9:00 PM Eastern Standard Time. The top 6 will then be asked to record and submit a video of themselves presenting their innovation idea. From those top 6 submissions, a panel of judges will select 3 finalists in each challenge, one of which will be the Adjudicators’ Choice. From the final 3, the general public will be encouraged to vote for their favorite innovation in each category between May 27 and June 5. The People’s Choice winner will be chosen by the number of valid, individual votes garnered from during the public voting period. The winning submissions will be announced on June 7, 2016 13. What do the winners get? What are the prizes? The People’s Choice winning team and the Adjudicators’ Choice winning team in each category will receive $5,000 for the team members to split, plus $500 for their school or youth serving organization. If a winning team is not affiliated with a specific school or youth serving organization, the $500 will be donated to an applicable organization of their choice. Non-winning finalist teams will receive $1,000 to share, plus a prize of $250 for their school or youth serving organization. Please note, winners will be responsible for paying applicable taxes on all winnings. 14. When do the winners get their prizes? Prizes will be distributed to the attention of the contact person within 60 days from the announcement of the winners. Winners will be asked to sign a winner’s contract indicating that the prizes have been received, revealing how they plan to use the winnings, and must provide appropriate tax identification information if their winnings total more than US$300. 15. How do we contact you if we need to? Most answers to your questions should be easy to find in this toolkit or on the website at http://moodysi2i.nfte.com. To submit a question or comment, send email to [email protected] nfte.com.

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

9

1 — Health Helper Challenge This challenge helps students to understand the process of assessing risk and to help others make informed decisions around their health. It also introduces students to app design.

The Challenge:

Design a fun and informative tablet or smartphone app that helps someone make healthy decisions. Everyone wants to be healthy, but many people do not know how to improve their health. Your challenge is to create an app or game that will measure a user’s current health status and provide steps/recommendations for improvement.

Innovation Submission Guidelines:

For example, you may want to help kids stay active, help working professionals find a diet and exercise plan that fits within their busy schedule, help athletes stay in performance shape, or help the elderly stay flexible. In developing your app, you should consider the following: Use the below checklist to make sure you have covered everything prior to completing your submission: 1. In “The Pitch” section, please answer these questions (Using 250 words or less): a. What’s the name of your app or game? b. What is your target population, and what kind of healthy decision will your app help them consider? c. What are the trade-offs that might be associated with this decision? d. How does your app or game encourage or motivate people to make these lifestyle changes? 2. In the “Market Opportunity” section: a. Describe who will be interested in your app (age, interests, etc.). Who is your app helping? Be as specific as possible – thinking about the audience you’re trying to reach will help you make it happen! b. How will you market your app or game to potential users? c. Are there other apps that exist with a similar purpose? How will yours be different or complement what already exists? 3. In the “Questions and Features” section: a. Give us a list of the questions your app or game will ask users to answer to assess their current state of health and lifestyle. b. Give us the next set of questions or activities to help users understand their healthy choice options and the trade-offs associated with their choices. c. What will the final output look like and how will the user be able to interpret the results? d. Will your app or game have any other features that will help users with their lifestyle changes or decisions? How will you make it uniquely appealing?

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

10

1 — Health Helper Challenge, cont’d. This challenge helps students to understand the process of assessing risk and to help others make informed decisions around their health. It also introduces students to app design.

Innovation Submission Guidelines:

4. In the “Weighing Your Outcome” section: a. Tell us what order your survey questions will be in, and why. b. Explain what survey questions will carry the most weight (be most important) and why. c. Discuss the algorithm (or scoring system) you will use to determine the best answer for each individual user. 5. In the “Show it to the World” section, upload 5 images that show what your app will look like. Hand sketches are welcome! (Hint: Check out other similar apps – what elements of their design are working well)? For example: a. Image 1 could be the homepage for the app, which is the first screen that users see when they sign in. b. Image 2 could show the screen where users would input the type of decision they want to make. c. Image 3 could show how the app would take them through the process of defining the options they must consider. d. Image 4 could show the additional features and benefits your app offers. e. Image 5 could show what the final output looks like, and how uses will know what steps to take to improve their health.

Relevant Links:

Go online to http://moodysi2i.nfte.com/challenges/health-helper to access links and resources!

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

11

2 — Community Defender Challenge This challenge focuses on market research and data collection in the context of bettering local communities.

The Challenge:

Become a neighborhood defender! Design a survey tool in the form of a mobile app that helps you solve social, environmental, or accessibility problems in your community. We each can be leaders in our communities and make a difference. First, think about all the communities you belong to (your school, neighborhood, clubs, sports teams, religious organizations, etc.). Then pick one and think about how you could best gather survey data from people in this specific community. Consider who they are, their behaviors, what they need or want… Now design an app, with a survey tool in it, that will help you to (a) gather research about the community you chose and (b) think of a project that could positively impact this community.

Innovation Submission Guidelines:

As an example, you might think about your school community and design a “Creative Commuter” app to learn more about the transportation behaviors of the students and why so many people drive when there are other, less costly options. You could ask survey respondents to share how they get to school and the factors that affect their choice—maybe cost isn’t key but it’s actually schedule flexibility or the need to haul heavy sports equipment. Maybe you’d want to partner with athletic team coaches and captains to get their teams to take the survey, since those students could be good targets to convert from drivers to bikers or walkers (they might appreciate the exercise and are likely to be in good shape!). Use these guidelines to complete your submission: 1. In “The Pitch” section please address the following (using 250 words or less): a. What community are you looking to help? b. What is the name of your app? c. Why do you think your app is different and more effective than old surveying approaches? 2. In the “Market Opportunity” section: a. Who specifically is the target market that you’re surveying (age, location, interests, etc.). Remember you don’t have to try to reach everyone. Maybe your app is specially designed to get responses from elderly residents in your apartment building or teens who get to your school by walking, for example. b. How will you distribute your survey tool? Can you partner with any other people or organizations to get participation?

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

12

2 — Community Defender Challenge, cont’d. This challenge focuses on market research and data collection in the context of bettering local communities.

Innovation Submission Guidelines:

3. In the “Questions and Features” section: a. What 5-10 specific questions is your survey asking to help you understand your market better? b. How else can you motivate your target market to participate in your survey? Will your app have any additional features or benefits to help with this? 4. In the “Weighing Your Outcome” section, please decide which of your survey questions are the two most important. Which will you weigh more heavily than others in determining a project that will best benefit your community? How will your scoring process work? 5. In the “Show it to the World” section, upload 5 images that show what your app will look like and how the user experience will be engaging and informative. Hand sketches are welcome! Hint: Check out other similar apps – what elements of their design are working well? For example: a. Image 1 could be the homepage for the app, which is the first screen that users see when they sign in. b. Image 2 could show a list of questions. c. Image 3 could show how the app might have additional features or benefits. d. Image 4 could show the final screen the user would see at the conclusion of their participation. e. Image 5 could show a screen providing a data report or summary of data gathered from all users.

Relevant Links:

Go online to http://moodysi2i.nfte.com/challenges/community-defender to access links and resources!

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

13

Submission Form Worksheet You may use this form to create a draft of your submission! You will need to register your team leader, invite your other team members, and and complete the online submission at http://moodysi2i.nfte.com before the deadline on April 14, 2016. Team Leader First Name Team Leader Last Name Email Address School/Organization Name Mailing Address City & State/Province/Region Country Date of Birth Team Member 1 First Name Team Member 1 Last Name Email Address Age Team Member 2 First Name Team Member 2 Last Name Email Address Age (You must have 2-3 team members, and you’ll need to provide this information for all other team members too. Team leaders should register first, then use the online form to invite teammates to join the team. They will then receive an invitation to register.)

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

14

Submission Form Worksheet (continued) NAME your team: NAME your project: Please make sure to review the ‘Innovation Submission Guidelines” for your challenge before you complete your submission! It’s important not to leave anything out.

1. The Pitch: Pitch us your solution to the challenge in 250 words or less. What is your app or game called? Who is your target population? How is your app designed to address this challenge? What makes your product unique? Be clear, crisp and creative!

2. Questions and Features: Tell us specifically what questions the survey portion of your app or game will ask, and how the results will be delivered to the user. (300 word limit).

Does your app have any other features or content that help users increase their engagement or understanding? If so, please explain. (150 word limit).

3.

Weighing Your Outcome: What order will your survey questions go in and why? (300 word limit)

Some answers may be more important than others. Explain which questions will carry more weight, and how you reached this decision. (300 word limit).

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

15

Submission Form Worksheet (continued) 4.

Market Opportunity: What are the characteristics of your user population? What makes your solution appeal to them? How will you distribute/market your game or app and where? Please be as specific as possible.

Background Research: Are there other products that already exist with a similar purpose? How is yours different, better, or a good supplement to what already exists?

5.

Show It To The World: Here’s your chance to show off your solution. Please upload up to 5 separate images, in order, that show exactly what the interface for your innovative app or game will look like – including the overall concept, a few crucial survey or special features images, and most importantly what the results output will look like.

Explain why you used this format or design. Why will this be better than other options you considered?

Please note: those teams whose submissions make it to the top 6 in their challenge will be asked to create a video of themselves presenting their submission in advance of the final round judging. Plan ahead - it might be you!

Submissions must be completed at http://moodysi2i.nfte.com by 9:00pm Eastern Standard Time on April 14, 2016. Please feel free to use extra pages when creating your draft!

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

Classroom Activity Sheets & NFTE Curricula

presented by

1

Community Walk-About Activity In-class Activity Ideally, this activity would span 2 class periods with one dedicated to the Walk-About, and the other period reserved for debriefing and presentation of student ideas. However, it may be modified as described below.

Objective:

Materials Needed:

Set-up:

Students will be able identify business opportunities in their community. Students will be able to generate business ideas based on the sources of opportunity in their community.

Walk-About Log; Neighborhood Map; Activity Worksheet

1. 2.

3.

4.

Outline of the Lesson:

Receive permission from your school to take students on a Community Walk-About during class time (if applicable). Contact a local (preferably independent) business owner to see if students can come into the store for a couple minutes and ask some questions. (optional) Make enough copies of the Walk-About Log, Neighborhood Map, and Activity Worksheet (all attached) so that every student and/or group has one each to fill out. Tell students in advance about the activity so students can dress appropriately for the weather.

Before the Walk 1. Divide the students into groups of 3 or 4, and distribute copies of the Walk-About Log & Neighborhood Map to each group. 2. Tell students that as a class they will be walking down a street in a local neighborhood to identify business opportunities in their own community. While on the walk, tell students that they should think about the needs and problems of the people in that neighborhood. (Give them a couple examples if necessary – “How is the parking or transportation in the neighborhood?” “What options are there for healthy food?”) 3. Tell students to record their thoughts and notes on the Walk-About Log during the walk, and to draw a map of the businesses and services they see along the way. 4. If students are going to be talking to a local business owner, have students take a couple minutes to write down some questions they want to ask the owner in the space provided on the Walk-About Log. During the Walk 1. Walk with students around the surrounding neighborhood. Be sure to point out some social and business needs that students may miss along the way. 2. Facilitate the conversation with the local business owner and add questions if necessary. 3. Be sure that students are on task completing their Logs and Maps.

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

2

Community Walk-About Activity, continued Outline of the Lesson:

After the Walk 1. Back in the classroom, as a class, have students list the problems or needs that the group identified while on the walk. If time permits, have students compile their maps into a larger community map to identify missing businesses or services. You can also discuss what the students learned from the local business owner regarding the success of her or his business in the neighborhood. 2. Have students break back into their groups. Instruct each group to brainstorm business ideas based on one of the needs or problems that was identified on the walk. You can choose to give each group the same problem, or assign a different problem to each group. 3. After brainstorming business ideas, groups should pick one idea that everyone in the group likes and expand on that business idea. The groups should come up with a description of the product/service, its target market, and how the product/service will make a profit. 4. Have students present their group’s business idea. Leave time for other groups to ask questions and give feedback on their ideas.

Modifications:

If time is a limiting factor, students can do the business idea brainstorming for homework in between class periods to allow more time for group debriefing and brainstorming. For students who cannot leave the classroom during class time, have students observe the surrounding neighborhood on their way out of school as a homework assignment, or students can use Google Maps to investigate businesses in the surrounding area.

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

3

Community Walk-About LOG GROUP MEMBERS: ____________________________________________________________________________ STUDENT INSTRUCTIONS: Use this space to write notes about problems that need solving you may identify while walking around the neighborhood near your school. Try to identify missing businesses or services as well.

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

4

Community Walk-About LOG, page 2 STUDENT INSTRUCTIONS: Use this space to record the answers to the questions you ask during your interview with a local business owner. Also use this space to record notes about your visit to the store (How many customers were in the store? Did it seem to be a busy?) Create your own questions in the space provided below. Business Name: ____________________________________________________________________________ Business Owner’s Name: _____________________________________________________________________

1.

Why did you choose to start this buisness?

2.

What made you choose this location for your business?

3.

Has this location been successful for your business?

4.

What need or solution does your business address in the community?

5.

What problems need to be solved, or what businesses do you see needed in the community?

6.

7.

8.

9.

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

5

Community Walk-About MAP GROUP MEMBERS: ____________________________________________________________________________ STUDENT INSTRUCTIONS: Use this space to draw a map of the streets you walk while on your Community Walk-About. Be sure to record businesses and public services (such as parking lots) that you see.

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

6

Community Walk-About Activity Worksheet NAME:___________________________________________________ DATE:______________________________ Step 1: As a class, dicsuss the problems that you saw during your Community Walk-About

Step 2: In your group, brainstorm business ideas that solve one of the problems encountered on your Walk-About. Record your ideas in this space.

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

7

Step 3: In your group, pick your favorite business idea from step 2 and create a business. Describe the product or service, the problem it solves, its target consumer, and how the business will make a profit. Record these answers in this space. Be prepared to share your answers to the class. Problem:

Business Name:

Description of Product or Service:

Target Consumer:

How will this business make a profit?:

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

8

Magazine Game Activity In-class Activity Lesson Plan

Objective:

Materials Needed:

Set-up:

Students will be able define a magazine’s target consumer.

Magazines of various genres for groups of 3-5 students

Divide the students into groups of 3-5 and assign each group a magazine. Allow the groups to work fir 15 minutes and to have 2-3 minutes to present. Set-up a large chart at the front of the classroom that you or a student will fill-in as each group presents the target consumer. Have the following chart ready-to-go before the students begin the game.

Age:

Outline of the Lesson:

M/F:

Interest/Spending Habits:

Income:

Provide students about 15 minutes to look through the magazine Choose a group spokesperson to describe: 1. The type of magazine it is 2. The kinds of articles written within it 3. The products and/or services being advertised (describe 2 ads to the class) 4. Describe ways the advertisers attempts to appeal to readers 5. Who you think the target consumer is?

Assessment/ Evaluation:

Listen to student responses and discuss

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

9

Chocolate Bar Market Research Activity In-class Activity Lesson Plan

Objectives:

• • •

Materials Needed:

Before the Activity:

Students will practice designing and implementing a market research activity. Students will be able to identify a potential target market and create a new product specifically for that market based on market research. Students will receive practice in creating promotional plans for their products.

Variety of Regular-Sized Chocolate Bars (Milk, Dark, Almonds, etc…) - 1 per Group; Bag of Assorted Chocolate Bars (Optional) ; Student Handout (Attached): Markers; Poster Board or Easel Paper; Scissors; Tape

1.

Pose the following situation to the class: “A company that makes chocolate bars is looking to invest in a new chocolate bar created by a team of young entrepreneurs. However, it has yet to find an innovative and exciting new product and brand that caters specifically to the market of youth ages 12-19. In addition to a new chocolate bar idea, the company would like market research about its feasibility before investing.”

2. Start a discussion about the importance of market research. Ask the students why the company would be interested in doing research BEFORE investing in the chocolate bar. • Be sure to define what a “Market” is and what “Market Research” is if students have not had a lot of exposure to these concepts in the book. • Try to lead the discussion in the course of WHY Market Research is important, and what it means to identify a “Target Market.” • Ask students for general things they would want to find out during their chocolate bar market research. Sample responses would be: “What is the most popular type of chocolate bar?”; “How often do they purchase chocolate bars?”

Activity Part 1:

1.

2.

3.

After a discussion, tell the students that they will be getting into groups to do this exact market research. Split students into groups of 4-5 and give every student a Student Handout. Review the instructions for Part 1 with the students. Tell the students that they must come up with a 6 question market research survey to research what would be the best type of chocolate bar to sell to youth ages 12-19. Have students work in groups to develop the survey questions on their student handouts. If students have a difficult time coming up with questions, you can provide the following as examples:

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

10

Chocolate Bar Market Research Activity In-class Activity Lesson Plan (continued)

Activity Part 1: (continued)

• • • • • • 4.

5.

6.

Activity Part 2:

What is your favorite type of chocolate? What are your three favorite ingredients? What are your favorite chocolate bars? How often do you purchase chocolate bars? Where do you buy chocolate bars? How much are you willing to spend for a normal size chocolate bar? When all the groups are finished, have the students ask their questions to other students as they are potential customers in this target market of 12-19 year olds. If possible, have the students visit another classroom or a lunchroom to get the results. Each group should be responsible for getting 20 unique responses. Have the students meet back in groups to count up their totals and complete the rest of part 1 of their student handout. Tell students that after they are done tallying up their data, each group will share some things they learned. During the share out of data findings, ask students if they hear any trends or differences in the data collected. Try to see if they can identify any differences in the sample sets for their data (i.e. a freshmen class surveyed versus a senior class, etc….) Draw conclusions based on key results.

1.

Now that all the groups have their own data, review the instructions in Part 2 of the Student Handout with the students. Tell students that they now must create their new chocolate bar based on the market research done by the group. Each group must: • Design a NEW chocolate bar • Design a brand name, logo, and slogan • Identify what makes their chocolate bar different • Price of the bar and where it will be sold • Come up with a commercial to perform about their bar • EXPLAIN the reasoning behind their strategy and link it to the market research 2. Tell students that the new products will either be voted on by the class, or by a panel of judges (depending on what you decide for each). Also, let the students know what the prize is for the competition. (This can be the bag of assorted chocolates, or it can be something such as a “Free Homework Pass” 3. Give each group a normal sized chocolate bar for inspiration while they work. Also provide students with chart paper, markers, etc… to prepare for their presentation. 4. When students are ready to present, be sure to remind whoever is judging – either the class or the judges – that the reasons for their decisions supported by their market research is just as important as creativity in this competition.

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

11

Chocolate Bar Market Research Activity In-class Activity Lesson Plan, continued.

Activity Part 2: (continued)

5.

Announce the winners and give the winning group the prize!

After the Activity:

1.

Be sure to have a final discussion with the students to debrief what was learned during this activity about market research. Be sure to highlight the groups that did the best job linking the market research to the promotional plan.

2.

Discuss with the students that they did “Primary Research” and let them know that they can use similar methods to do their own research for their business plan.



Students can be assessed informally by their participation and answers during the class discussion and presentations. Students can be assessed more formally on the completion of their Student Handout and the quality of their presentation. It is very important to link the student learning of the market research to the development of the new product. If students create an interesting product, but do not support their choices with sufficient data from their research, then remediation may be necessary.

Assessment:

• •

Modifications:





If students cannot visit other classes to get the survey responses, the class can do a survey as a whole class to get the same data. However, visits to other classrooms will ensure a more interesting and unique data set per group. For students that have difficulty creating questions, or for sake of time, students can be given the questions suggested in the “Instruction” part of this guide and the brainstorming research questions part can be skipped.

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

12

Chocolate Bar Market Research Activity STUDENT HANDOUT

Challenge: A company that makes chocolate bars is looking to invest in a new chocolate bar created by a team of young entrepreneurs. However, it has yet to find an innovative and exciting new product and brand that caters specifically to the market of youth ages 12-19. In addition to a new chocolate bar idea, the company would like market research about its feasibility before investing. Part 1: Market Research Instructions: Working in groups, develop a 6 question market research survey to research what would be the best type of chocolate bar to sell to youth ages 12-19. Remember to ask questions that will help you design a new product that people in that age group will want to buy. Ask your teacher if you need help thinking of questions. Write your questions in the space provided below. You will ask these questions to a classmate who is in the target market of 12-19 year olds, and record their answers in the spaces below the questions. Your group must get 20 different people to take your survey. After getting your responses, meet back with your group to put all your data together.

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

13

Chocolate Bar Market Research Activity STUDENT HANDOUT, CONTINUED.

Part 1, continued Below, list some of the key things you learned as a group from doing your research to share with the class. Try to think of how you could use this information do develop a new chocolate bar.

Part 2: Develop a New Product Instructions: Now it is time for your group to create a new chocolate bar based on your market research. As part of your new product, your group must: • • • • • •

Design a NEW chocolate bar Design a brand name, logo, and slogan Identify what makes your chocolate bar different Price of the bar and where it will be sold Come up with a commercial to perform about your bar to judges or your classmates EXPLAIN the reasoning behind your strategy and link it to the market research done

Remember: The reasons for your decisions that are supported by their market research are just as important as creativity in this competition.

NETWORK FOR TEACHING ENTREPRENEURSHIP

Moody’s Information to Innovation Challenge: 2016 Toolkit

Presented By

Introduction to  Entrepreneurship

Section 1.2 Characteristics of an Entrepreneur

Section 1.1 What Is Entrepreneurship?

CHAPTER

Section 1.1: What Is an Entrepreneur?

2

What Is  Entrepreneurship?

Define what it means to be an entrepreneur Compare the pros and cons of being an entrepreneur Identify successful entrepreneurs and their achievements

OBJECTIVES

SECTION

Section 1.1: What Is an Entrepreneur?

3

When an entrepreneur starts a new business, risk is involved. Risk is the chance of losing something. Because employees work for someone else and entrepreneurs work for themselves, entrepreneurs risk more than employees. Small firms employ about half of the U.S. private work force, and they create around 64 percent of all new jobs. One way you can gain a sense of what business is like is by investigating an internship, or apprenticiship.

Someone who creates and runs a business is called an  entrepreneur.

What Is an Entrepreneur?

Section 1.1: What Is an Entrepreneur?

4

Making Your Own Rules. When you own a business, you get to be your own boss. Doing Work You Enjoy. Since the majority of most peoples’ lives is spent working, why not spend that time doing something you enjoy? Creating Greater Wealth. There’s no limit to what an entrepreneur can make. Helping Your Community. Being an entrepreneur lets you make your community and world a better place.

The biggest reward of becoming an entrepreneur is the personal  satisfaction that comes from having the freedom to make your own  business decisions and then act on them.

Why Be an Entrepreneur?

Section 1.1: What Is an Entrepreneur?

5

Potential Business Failure. Being fully responsible means the success or failure of your business rests on you. Unexpected Obstacles. Problems can happen that you don’t expect. Financial Insecurity. Many new businesses don’t make much money in the beginning, so you may not always be able to pay yourself. Long Hours and Hard Work. It’s not unusual for entrepreneurs to work a lot of extra hours to make their businesses successful. This is especially true during the initial start-up process.

Risks of Being an  Entrepreneur

Ingvar Kamprad Stephen Wozniak and Steve Jobs Russell Simmons Dinah Mohajer

Section 1.1: What Is an Entrepreneur?

Thomas Edison P.T. Barnum Wlliam Harley & Arthur Davidson Maggie Lena Walker

Here are some well‐known entrepreneurs who changed the  world. For what is each entrepreneur most famous?

Entrepreneurship in History

6

Characteristics of an Entrepreneur

Section 1.2: Characteristics of an Entrepreneur

Describe who becomes an entrepreneur List the key characteristics of an entrepreneur Explore ways to build your business potential Explain the value of learning about entrepreneurship

OBJECTIVES

SECTION

7

Section 1.2: Characteristics of an Entrepreneur

Who Are Entrepreneurs?

8

Section 1.2: Characteristics of an Entrepreneur

9

An aptitude is a natural ability to do a particular type of work or activity well. An attitude is a way of viewing or thinking about something that affects how you feel about it. Entrepreneurs tend to be people with positive attitudes.

Self‐assessment—evaluating your strengths and weaknesses— is an important part of becoming an entrepreneur. 

Characteristics of Successful Entrepreneurs

Business Skill Communication Skill Computer Skill Decision-Making and Problem-Solving Skills Mathematical Skill Organizational Skill People Skills

10

A skill is an ability that’s learned through training and practice.

Skills

Section 1.2: Characteristics of an Entrepreneur

Courage Creativity Curiosity Determination Discipline Empathy Enthusiasm Flexibility Honesty Patience Responsibility

Personal Characterisitics

Characteristics of Successful Entrepreneurs

Section 1.2: Characteristics of an Entrepreneur

11

Business Knowledge. Reading magazine and newspaper articles, search the Internet, and talk to business owners. Financial Skills. Strengthen your math skills. Career Exploration. Evaluate your strengths and weaknesses, explore careers interest you. Community Awareness. Look for volunteering opportunities and find out if any companies in your area provide internship programs. Education. Obtaining a good educationbenefits you personally and open doors to more career opportunities. Relationships. Spend time with people who believe in you and inspire you.

Increase your business and entrepreneurial potential by  focusing on six specific areas.

Increasing Your Potential

Section 1.2: Characteristics of an Entrepreneur

12

There are two primary reasons why studying entrepreneurship  makes sense: you learn to think like an entrepreneur and you  develop a vision for your life.

Why Study Entrepreneurship?

CHAPTER

Section 5.2 Socially Responsible Business & Philanthropy

Section 5.1 Ethical Business Behavior

Ethics & Social Responsibility

Ethical Business Behavior

Section 5.1: Ethical Business Behavior

Relate values to ethics Describe the benefits of practicing business ethics Explain ways that entrepreneurs can promote ethical behavior in the workplace Suggest solutions to ethical problems entrepreneurs may face

OBJECTIVES

SECTION

2

Section 5.1: Ethical Business Behavior

Universal values are values that are shared by all cultures throughout history. Business ethics are moral principles applied to business issues and actions. Entrepreneurs have considerable influence on their company’s business ethics.

3

Individual values form the basis of ethics, a set of moral  principles that govern decisions and actions. To act ethically is  to behave in ways that are in keeping with certain values.

What Are Ethics?

Section 5.1: Ethical Business Behavior

4

Customers are more confident when buying goods and services from an ethical company. An ethical workplace motivates employees. Ethical behavior also prevents legal problems.

Three practical reasons why you should practice business ethics:

The main reason for behaving ethically, in business or in any  area of life, is simply that it’s the right thing to do.

Why Practice Business Ethics?

Section 5.1: Ethical Business Behavior

5

To deter unethical behavior, companies try to create transparency, or openness and accountability in business decisions and actions. To enhance transparency, companies today are using social media, which are are interactive electronic forms of communication such as blogs and message boards A whistle-blower is a term for someone who reports illegal or unethical conduct to superiors or to the public.

Universal values establish a strong foundation for society and  are also a good basis for running your business.

Establishing an Ethical Workplace

Sample Code of Ethics

Section 5.1: Ethical Business Behavior

Writing a code of ethics forces you to clarify your own values and principles. Having a code will also help prevent and resolve ethical problems. A written code provides some protection against claims of unfairness.

A code of ethics describes a business’s moral philosophy and  gives concrete guidelines for carrying it out.

Writing a Code of Ethics

6

®

©

Section 5.1: Ethical Business Behavior

7

Intellectual property is artistic and industrial creations of the mind. Copyright is the exclusive right to perform, display, copy, or distribute an artistic work. A patent is the exclusive right to make, use, or sell a device or process. A trademark is a symbol that indicates that the use of a brand or brand name is legally protected and cannot be used by other businesses. A conflict of interest exists when personal considerations and professional obligations interfere with each other. Confidentiality involves respecting the privacy of others.

When faced with an ethical decision, it’s best to rely on your  own strong personal values to help guide your response.

Ethical Issues for Entrepreneurs

Socially Responsible  Business &  Philanthropy

Section 5.2: Socially Responsible Business & Philanthropy

8

Define corporate social responsibility Explain entrepreneurs’ responsibilities to individuals Describe entrepreneurs’ environmental responsibilities Identify entrepreneurs’ community responsibilities

OBJECTIVES

SECTION

=

Doing Well by Doing Good

Section 5.2: Socially Responsible Business & Philanthropy

9

One type of socially-responsible corporate behavior is ethical sourcing, which means buying from suppliers who provide safe working conditions and respect workers’ rights.

Corporate Social Responsibility

Corporate social responsibility often translates into profits. This advantage for business is sometimes described as “doing well by doing good.”

Corporate social responsibility means that businesses act in  ways that balance profit and growth with the good of society.

Corporate Social Responsibility

Section 5.2: Socially Responsible Business & Philanthropy

10

Entrepreneurs have legal obligations to provide a safe workplace and fair employment policies. Business owners are bound by law to treat customers fairly. Acting responsibly toward suppliers or vendors results in making the best choices of materials and using them wisely. Investors and creditors provide the money to start and run a business. They must believe in both the idea behind the business and the entrepreneur.

Corporate social responsibility affects employees, customers,  investors, and creditors.

Responsibility to Individuals

Section 5.2: Socially Responsible Business & Philanthropy

11

Sustainable Design. Sustainable products meet the planet’s current needs while preserving resources for future generations. Alternative Energy. Researchers are working to make fossil-fuel alternatives such as solar, wind, and hydrogen power more efficient. Organics. Organic produce, grains, and meats make up a small but steadily growing segment of the food market. Fair Trade. This is a way of doing business based on principles of social and environmental responsibility and promoting sustainable growth.

To an environmentalist, “green” means protecting natural  resources. To an entrepreneur, being “green” means money.

Responsibility to the Environment

Section 5.2: Socially Responsible Business & Philanthropy

Five ways that a business can lower its expenses, while also helping the environment include: Getting into the recycling loop. Doing business electronically. Buying supplies in bulk. Replacing incandescent light bulbs with fluorescent ones. Using environmentally friendly transportation.

Creating an energy‐efficient workplace saves money and can  draw customers.

12

The Energy‐Efficient  Workplace

Section 5.2: Socially Responsible Business & Philanthropy

13

Cause-related marketing is a partnership between a business and a nonprofit group for the benefit of both. It increases sales for the business and raises money and awareness for the nonprofit group. Sponsorship is when a business sponsors a community event or service in exchange for advertising. With facilitated giving, a business makes it easier for customers to contribute to a cause. Philanthropy occurs when business leaders donate money and other resources for socially beneficial causes. An in-kind donation is the gift of a good or service.

Businesses support disadvantaged and needy people, either for  financial gain or because "It's the right thing to do."

Responsibility to the Community

CHAPTER

Section 7.1 What Is Market Research?

Market Research

What Is Market  Research?

Section 7.1: What Is Market Research?

Explain why market research is important Consider important factors when targeting a market Identify market research methods

OBJECTIVES

SECTION

2

Section 7.1: What Is Market Research?

3

Business Environment. The business environment refers to any social, economic, or political factors that could impact your business. Customers. These can be individual consumers or businesses. Competition. Competitors offer a product or service similar to yours or one that fills the same customer need or want.

A market is a group of potential customers—people or businesses—who are willing and able to purchase a particular product or service.

Market research is an organized way to gather and analyze  information needed to make business decisions.

Why Is Market Research  Important?

Section 7.1: What Is Market Research?

4

Consumers. A company who sells to individuals is sometimes referred to as a business-to-consumer (B2C) company. Businesses. A company who sells to other companies is sometimes called a business-to-business (B2B) company.

One of the goals of market research is to develop a customer profile, which is a detailed description of your target market’s characteristics.

The limited number of customers who are most likely to buy the  product or service represents your target market.

Targeting Your Market

Section 7.1: What Is Market Research?

5

Demographics are objective social and economic facts about people. Basing market segments on where consumers live or where businesses are located is called geographics. Psychological characteristics of consumers, such as attitudes, opinions, beliefs, interests, personality, lifestyle, political affiliation, and personal preferences, are called psychographics.

A market segment is a grouping of consumers or businesses within a particular market that has one or more things in common.

Targeting Your Market

Section 7.1: What Is Market Research?

Government Trade Groups and Journals Business Magazines and Reports Local Community Resources 6

The two basic types of market research are derived from secondary data and primary data: Secondary Data. Existing information that was previously gathered for a purpose other than the study at hand is secondary data. Examining existing secondary data is useful for doing general, exploratory researchto learn more about your area of interest. Sources include:

Market Research Methods

Section 7.1: What Is Market Research?

Interviews/Surveys Focus Groups Observations

7

Primary Data. New information that is collected for a particular purpose is primary data. Once you have a better sense of your target market, you can begin to gather data directly from that potential group of customers. Some common ways to obtain such primary data are:

Market Research Methods

CHAPTER

Section 8.2 Promoting Your Product

Section 8.1 Developing Your Marketing Mix

Marketing Your  Product

Developing Your  Marketing Mix

Section 8.1: Developing Your Marketing Mix

Summarize the basic principles of promotion Define the elements in a promotional mix Examine what’s included in a promotional plan Discuss ways to budget for promotion

OBJECTIVES

SECTION

2

Section 8.1: Developing Your Marketing Mix

3

Every marketing plan is unique because each business has its own marketing goals. Marketing goals require a time frame: short, mid, and long-range goals. Marketing goals should also account for motive, consistency, and cost. Another marketing goal is market share, which is the percentage of a given market population that is buying a product or service from a particular business.

Marketing is a way of presenting your business to your  customers. To communicate the value of your product or service  clearly, you create a marketing plan.

What Is a Marketing Plan?

Section 8.1: Developing Your Marketing Mix

4

The process you use to make potential customers aware of your product or service and to influence them to buy it is referred to as promotion.

People Product Place Price Promotion

Every marketing plan has five main strategy areas, sometimes referred to as the “Five P’s.” How a company chooses to combine these areas is called its marketing mix.

What Is a Marketing Plan?

Section 8.1: Developing Your Marketing Mix

5

The features of a product are what it does and how it appears to the senses. The benefits of a product are the reasons customers choose to buy it. The combination of products a business sells is called its product mix. A brand is a marketing strategy that can create an emotional attachment to your product in the mind of the consumer. A logo, or brand mark, can also be used. The process of creating a strong image in the mind of the consumer is called product positioning.

Determining People and  Product Strategies

Section 8.1: Developing Your Marketing Mix

6

Exclusive distribution gives a specific retailer, or authorized dealer, the sole right to sell a product in a particular geographical area. Intensive distribution seeks to make a product available at as many sales outlets as possible. Selective distribution allows a product to be sold at a moderate number of sales outlets, but not everywhere, in a geographical area.

A direct channel is a pathway in which a product goes from the producer straight to the consumer. An indirect channel is a pathway in which the product goes from the producer to one or more intermediaries before it reaches the consumer. Three distribution strategies are:

Distribution channels are the various ways that a product can  reach the consumer.

Determining Place (Distribution) Strategies

Section 8.1: Developing Your Marketing Mix

Build or Maintain an Image Increase Sales Volume (Quantity) Obtain or Expand a Market Share Maximize Profits

When deciding price objectives, keep in mind your overall business plan goals, your marketing or brand goals, and what your target market can afford to pay. Following are a few samples of price objectives:

Base the price of your product on two things: your target  market and the potential profits for your company.

Developing Price Strategies

7

Section 8.1: Developing Your Marketing Mix

8

Demand-Based Pricing. This method focuses on consumer demand—how much customers are willing to pay for a product. Competition-Based Pricing. This method focuses on what the competition charges. Cost-Based Pricing. This method sets a product’s price based on what it costs your business to provide it.

There are three basic pricing strategies:

Selecting a Basic Pricing Strategy

Section 8.1: Developing Your Marketing Mix

Retail Price – Markdown Amount = Markdown Price (“Sale” Price)

Retail Price × Markdown Percentage/100 = Markdown Amount

A markdown price is set when a retailer wants to reduce the price of a product.

Wholesale Cost + Markup Amount = Markup Price (Retail Price)

Wholesale Cost × Markup Percentage/100 = Markup Amount

9

When a retail store buys a product from a wholesaler, they add an  additional amount to the wholesale cost to make a profit. This  results in a markup price.

Allowing for Price Adjustments

Promoting Your Product

Section 8.2: Promoting Your Product

Summarize the basic principles of promotion Define the elements in a promotional mix Examine what’s included in a promotional plan Discuss ways to budget for promotion

OBJECTIVES

SECTION

10

4.

3.

2.

1.

Section 8.2: Promoting Your Product

11

Attention. The first step when introducing a new product to a market is to grab the attention of potential customers. Interest. After you get people’s attention, you want to keep it. To hold consumer interest, you need to focus your message on the product’s features and benefits. Desire. What can you do to make your product desirable? Action. Ask consumers to take action, to buy. You may also want to give them a reason to act right away.

AIDA is a communication model used by companies to plan,  create, and manage their promotions. AIDA stands for:

Principles of Promotion

Section 8.2: Promoting Your Product

Advertising Visual merchandising Public relations (PR) Publicity Personal selling Sales promotion 12

The goals of a promotional mix are to build a favorable awareness about your product and business, and to influence people to buy your product. The six elements of a promotional mix are:

The combination of promotional elements that a business  chooses is called a promotional mix.

Choosing a Promotional Mix

Section 8.2: Promoting Your Product

13

How you visually present and physically position your products is also an important part of promotion.

Print Advertising Direct Mail Radio and Television Product Placement Internet Outdoor Advertising

Six of the most common types of advertising are:

Advertising uses various media, or communication channels, to  send promotional messages to potential customers.

Forms of Advertising

Section 8.2: Promoting Your Product

14

News Articles and Announcements. The PR staff works to develop good relationships with reporters in the local news media. A press release is a written statement that typically consists of several paragraphs of factual information about a product or business. Community Events. Sponsoring an event that promotes a good cause can create favorable publicity. Contests. Contests help create excitement about your product or business by offering prizes to winners.

Companies have public relations (PR) departments to help build  and maintain a positive  image. Examples of activities and tools  used to get publicity include:

Public Relations and Publicity

Sales staff meet and talk with customers person-toperson-person on a daily basis. Telemarketing involves promoting or selling products or services over the telephone. Salespeople also use networking to find new customers and promote products. Networking is meeting new people though current friends and business contacts. A new approach to marketing, called 360° marketing, encurages you to communicate with your prospects and customers from all directions; it blends low-tech and high-tech methods to deliver your message to customers in Section as many ways as possible. 15 8.2: Promoting Your Product

Personal Selling, Sales  Promotion,  and 360° Marketing

What promotions are needed before the business is opened? What promotional adjustments will need to be made when the new business is launched? What ongoing promotional strategies are needed?

Section 8.2: Promoting Your Product

16

A promotional plan must include ways to track responses that result from specific types of promotion.

A promotional campaign is a group of specific promotional activities built around a particular theme or goal.

3.

2.

1.

A promotional plan for a new business must consider:

Developing a Promotional Plan

Section 8.2: Promoting Your Product

17

Swapping Services. A trade-out is a bartering practice whereby you trade your company’s products or services for air time on a radio station. Cooperative Advertising. When two companies share the cost of advertising, it is called cooperative advertising. Testimonials and Endorsements. If customers, news sources, or organizations praise your products or services, ask if you can quote them in brochures or catalogs or on your Website.

If your promotional budget is low, here are some ways to keep costs down:

Your business industry The strength of your competition Which media best reaches your target audience The funds you have available

Your budget for promotion will be determined by:

Budgeting for Promotion

Entrepreneurial Case Study: Eva’s Edibles (Market Research) Learning Objectives

Curriculum Connections Business Plan Slides Overview

Students will receive a reinforcement on market research concepts Students will learn the difference between primary and secondary research, and be able to identify various methods and resources to do both Students will have market research modeled for them to enhance their ability to conduct basic research Students will receive a model to follow when conducting their own research Students will support arguments using critical thinking and discussion skills Entrepreneurship 11th Edition – Chapter 7: “Market Research” “Market Analysis” “Target Market Segment” This Case Study has been adapted from the Eva’s Edibles Case Studies, a series presented at the end of each unit of Entrepreneurship – 11th Edition. This particular case study in its original form can be found at the end of Unit 3 (pages 192-193), as one of eight interrelated studies about a fictional young entrepreneur. In this handout, it appears as a stand-alone story for teachers who want to investigate the Market Research process in more detail. It also integrates the “Market Research Activity” presented at NFTE U. Case Studies are excellent ways to integrate reading, math, critical thinking, and entrepreneurship concepts into a single exercise, while giving students a “real-world” example of entrepreneurship concepts in practice. This case study best aligns when the students get to Chapter 7 and are currently learning how to conduct market research. Before students have to do their own research, this case study allows students to walk through the market research process, learn how to identify the different types of data needed, and begin to locate resources that can help them do their own research. Ideally, this activity will help students produce stronger Market Analysis slides as they have a template to follow.

Time Needed Materials Needed Teacher Prep

2 Class Periods (60 - 80 minutes) Copies of the Eva Edibiles Case Study (Attached; pages 4-12) Computers (Optional) 1. Make copies of the Case Study Handout (pages 4 – 12) for every student. 2. Decide if students will have computer access for the Activity portion of the Case Study

Copyrighted for The Network for Teaching Entrepreneurship, 2010.

1

Notes for Instructor

Important Definitions “Market” – A group of potential customers – people or businesses – who are willing and able to purchase a particular product or service. “Market Analysis” – A description of the market size, trends, characteristics and growth rate. “Market Research” – an organized way to gather and analyze information needed to make businesses decisions. “Primary Data” – New information that is collected for a particular purpose. It is obtained directly from potential customers. “Secondary Data” – Existing information that was previously gathered for a purpose other than the study at hand. “Target Market” – Limited amount of customers who are most likely to buy a specific product or service. Please refer to the “Glossary of Terms” included at the end of the Case Study Handout for a full list of vocabulary words used in the reading.

Instruction

Before You Begin 1. Tell students that they are going to be reading a Case Study about a young entrepreneur named Eva Tan. 2. Explain to the students what a Case Study is if this is the first one your class has read. Instruction 1. Have students work through the Case Study, either in groups or as a class, stopping at the appropriate breaks to ensure student understanding and discussion of the reading up to that point. 2. Have students work together in groups during the Primary/Secondary Data activity. You may choose to have students use a computer to find sources, but it is not necessary. Examples of websites are listed in the appendix, and the activity only asks students to say the type of resource she would need. Have groups share their answers with the class when finished. 3. Walk through the market analysis and target market segment slides so students see examples of these completed slides. 4. After reading about Eva’s research, have a class discussion to get student input. Be sure to ask the students if they agree with Eva’s assumptions and segmenting of the market. See if students can see any oversights on her part (such as households that maybe families making combined income of $50,000, but these customers may not has as much disposable income for a personal chef). The key learning should be that this research helped Eva make the most informed decision.

Copyrighted for The Network for Teaching Entrepreneurship, 2010.

2

Assessment

Modifications

Extensions

Students can be assessed on their completion of the Case Study Handout, and their participation in group/class discussion. The Case Study can be assigned as an individual assignment, or as a long homework assignment instead of a class assignment. However, there should be some form of discussion in the classroom so that student can see each others’ answers Depending on the students’ reading abilities, the reading can be assigned to be done in small groups or done as a class. Use your best discretion on what works best for your own classroom. For advanced students, students can design their own primary research to investigate their potential market for their business idea. Entrepreneurship 11th Edition Student Workbook o Study Guide p.61-66 o Business Plan Project Section p.267-269 BizTech, Sections 7.1 & 7.2 Entrepreneurship 11th Edition p.176; Critical Thinking – Assign students either of the Critical Thinking Exercises from p.176 to answer on their own: o “Suppose you’ve recently built a prototype for a new video game. What types of primary and secondary research could be done to test it in the marketplace?” o Have students place the following characteristics on a blank “Target Market Segment” slide in the appropriate sections. Characteristics: Likes to sew, three children in the family, married, earns $40,000 a year, works in Atlanta, 50+ employees, enjoys Chinese food, financially conservative, lives in Putnam County, 18 years old, customer-service focus, Spanish heritage, outgoing personality

Copyrighted for The Network for Teaching Entrepreneurship, 2010.

3

NFTE Entrepreneurial Case Study: Eva’s Edibles Market Research Eva Tan graduated from Columbus State Community College with an associate’s degree in Business Management. After graduating, Eva decided to work full-time, so she could pay back her college loans. But she kept on the lookout for an opportunity to start her own full-time business. One day, her mother told her about an opening at Ohio State University. “It’s an administrative assistant job with the Campus Dining Services,” she said. “They manage ten restaurants and a catering service on campus. With your business degree and experience in event planning, it could be a good match.” Eva got the job. She worked for the Director of the Campus Dining Services. Eva’s job allowed her to apply her business skills, while learning how various types of food services are managed. Although she enjoyed her work, Eva realized that, of all the event-planning tasks she had been given, she had most of all enjoyed cooking.

What did Eva give up by beginning to work full-time? Would you have made that same choice?

Which task(s) are your favorite at school, or if you have one, your part-time job?

___________________________________________STOP___________________________________________

Copyrighted for The Network for Teaching Entrepreneurship, 2010.

4

One day Eva was talking with a friend who said, “After working all day, I wish I had someone to cook dinner for me!” “Wow,” Eva thought, “what a great idea! People who work all day might appreciate having someone prepare their meals. That’s an idea for a business. I could become a personal chef for working people.” It seemed like a great way for Eva to combine her passion for cooking and her desire to start a full-time business. Eva knew that some of her cooking skills were weak. She needed improvement in knife technique, costcutting, and efficiency. Eva also figured that people be reluctant to hire a personal chef who had no formal culinary training. She decided to do some market research to help her decide if her idea was a viable business opportunity. Based on your favorite task from school or work in the previous section, is there a way you could use that passion to create a business idea? What training would you need to run this business?

If you were Eva, what type of information would you like to know from the market research?

___________________________________________STOP___________________________________________ Eva made a list of some of the questions she had that she would needs answers to before she could start her business. At first, answering some of those questions seemed overwhelming or even impossible. However, she remembered what she had learned about market research in her business management classes at Columbus State. There are two basic types of market research methods, depending on the type of data is needed: Secondary Data and Primary Data. Secondary Data is existing information that was previously gathered for a purpose other than the study at hand. Secondary data may be relatively cheap and easy to obtain. Examples of secondary data are economic forecasts issued by financial organizations and demographic data collected by the U.S. government.

Copyrighted for The Network for Teaching Entrepreneurship, 2010.

5

Primary Data is new information that is collected directly from potential customers for a particular purpose. Primary data can be useful as it is aimed at a specific target market, but it can be time consuming and expensive to collect. Eva realized that since Secondary data was cheap and easy to find, she would start with those sources first. She also realized that if she knew what type of data was needed to answer each of her questions, she could then determine where to find the information that she needed. Using your knowledge of the types of research methods, determine if each of Eva’s questions below can be answered using Primary or Secondary Data. Then, suggest how she could find this information. (See the appendix for suggestions of Market Research Sites) Question

Primary/Secondary Data How can Eva find this information?

1. What industry is a personal chef in? 2. What type of training and certification does she need? 3. What legal issues will she need to consider? 4. Who is her target market?

5. How big is her market?

6. How can she find out more about the growth rate of Columbus? 7. Who are her main competitors?

8. What are her potential customers looking for?

___________________________________________STOP___________________________________________ Copyrighted for The Network for Teaching Entrepreneurship, 2010.

6

After listing her questions, here is how Eva decided to gather the information needed for her market research: Question

Primary/Secondary Data How can I find this information?

1. What industry is a personal chef in?

Secondary

Government Websites: http://www.uspca.com http://www.bls.gov/oco/oco1002.htm#social

2. What type of training and certification does I need?

Primary/Secondary

Culinary schools and associations, restaurants

3. What legal issues will I need to consider?

Secondary

Library or internet sites: http://www.uspca.com

4. Who is my target market?

Primary

Local chefs from schools or restaurants, call people on the phone

5. How big is my market?

Secondary

Government Websites: http://www.uspca.com http://www.bls.gov/oco/oco1002.htm#social

6. How can I find out more about the growth rate of Columbus?

Secondary

Government Websites: www.census.gov

7. Who are my main competitors?

Primary/Secondary

Interviewing competitors, local newspapers and magazines

8. What are my potential customers looking for?

Primary

Stand outside work places or malls to survey potential customers and observe patterns

By completing this chart, Eva knew how to the get the answers she needed. She made a list of established competitors and visited their Websites. She also telephoned them to find out more about their services. Eva then created a customer survey, which she conducted at a local mall. She discovered that people didn’t use personal chefs because they weren’t aware they existed. They also assumed that the cost of a professional chef would be out of their price range. ___________________________________________STOP___________________________________________

Copyrighted for The Network for Teaching Entrepreneurship, 2010.

7

Let’s take a look at what Eva discovered from her Market Research: Eva’s Secondary Data Findings

Eva’s Primary Data Findings

The Special Food Services industry size is $31,130,659 Total Population Columbus, OH – 754,885 Size of Columbus – 212.6 sq. miles Density of Columbus – 3,556 people/sq mile 36.7% (110,760) of households have 2 or more people with an income of greater than $50,000 Columbus has a growing market segment of professionals

25% of people surveyed eat out or order in 4 or more times a week The majority of people surveyed did not use a personal chef because they did not know it existed, or thought it would be out of their price range Many of these professionals surveyed are too busy to cook for themselves, but would love to eat healthy if it were convenient.

Eva used the data she collected to do a Market Analysis seen below. From the information she collected, she was able to calculate the “Target Market” and “Potential Market Size.” 754,885 (Total Pop.) x 36.7% (% of Households with 2 people, $50K+) = 110,760 (Target Market Size) 110,760 (Target Market Size) x 25% (% of surveyed who eat out 4+ nights) = 27,690 (Potential Market Size)

Copyrighted for The Network for Teaching Entrepreneurship, 2010.

8

Eva also used her primary and secondary research to put together a Target Market Segment, or she would best her describe her average customer.

Through her research, Eva also found the answers to the following questions: Description of Service: Eva would be responsible for planning, buying, and preparing five dinners for a household. Food is often prepared in customers’ homes. The chef packages dinners family-style with heating instructions and stores them in the customer’s refrigerator or freezer. Kitchen clean-up is the personal chef’s responsibility. Start-Up Expenditures: A low financial investment is needed to start a personal chef business. Eva would have to purchase her own set of professional knives, and possibly some cooking utensils. Training and Certification: Both home study and on-site training courses were available through associations such as the American Personal and Private Chef Association (APPCA) and the U.S. Personal Chef Association (USPCA). A personal chef could become certified after meeting educational and workexperience guidelines. Eva figured that certification would help potential customers have more confidence in her. Competition: In the greater Columbus area, there were currently 15 personal chefs. Copyrighted for The Network for Teaching Entrepreneurship, 2010.

9

Growth Potential: Personal chef businesses made up one of the fastest growing segments in the foodservice industry. According to the APPCA, about 9,000 personal chefs were currently serving 72,000 clients nation-wide. Those numbers were expected to double over the next five years. ___________________________________________STOP___________________________________________

Based on her love of cooking and the market research she did, Eva decided to switch from being a part-time event-planner to a full-time personal chef. She named her company, Eva’s Edibles. On a vacation from her job at the Campus Dining Services, Eva took a five-day personal-chef training course to prepare her for the certification tests. When Eva returned from vacation, she prepared a business plan on evenings and weekends. When she was satisfied with it, she did something everyone had advised her not to do: she quit her day job (but with appropriate notice). She was going to be a personal chef. She was going to start Eva’s Edibles!

Based on Eva’s background, her personal skills, and her market research results, do you think her business idea is a good opportunity? Would you have made the same decision as Eva? Why or why not?

___________________________________________STOP___________________________________________

Copyrighted for The Network for Teaching Entrepreneurship, 2010. 10

Appendix: Market Research Resources Government Websites Census Bureau Homepage: http://www.census.gov/ Small Business Association Homepage: http://www.sba.gov/smallbusinessplanner/manage/marketandprice/SERV-MARKETRESEARCH.html/ Bureau of Labor Statistics: http://www.bls.gov/oco/oco1002.htm#social/ Online Resources Census Data by Zip Code: http://www.zipskinny.com/ Business Statistics & Financial Ratios: http://www.bizstats.com/ Nielsen Research Services: http://www.claritas.com/ Marketing Blog: http://www.knowthis.com/ Business Magazines & Reports Inc Magazine (http://www.inc.com/articles/2001/07/23181.html) Entrepreneur Magazine (http://www.entrepreneur.com/marketing/marketresearch/article51796.html) Local Community Resources Public Library Local College Local Business Director: http://www.chamberofcommerce.com/ Primary Research Methods Interviews/Surveys (Sample Survey: http://www.entre-ed.org/_teach/act-surv.htm) Focus Groups Competitor Websites Observations Online Surveys: Survey Monkey (http://www.surveymonkey.com)

Copyrighted for The Network for Teaching Entrepreneurship, 2010. 11

Glossary of Terms Note: The following terms from this case study can be found in the Entrepreneurship 11 th Edition textbook. The page number where the term is found is also included. Business Opportunity – consumer need or want that potentially can be met by a new business. (p.147) Competition – a common practice in a market economy where businesses compete against each other. (p.33) Focus Group – a small number of people who are brought together to discuss a particular problem, product, or service. (p.173) Industry – a branch of business concerned with a specific output of product or service (i.e. food service industry) Market – A group of potential customers – people or businesses – who are willing and able to purchase a particular product or service. (p.167) Market Analysis – A description of the market size, trends, characteristics and growth rate. (p.142) Market Research – an organized way to gather and analyze information needed to make businesses decisions. (p.167) Primary Data – New information that is collected for a particular purpose. It is obtained directly from potential customers. (p.171) Secondary Data – Existing information that was previously gathered for a purpose other than the study at hand. (p.171) Target Market – Limited amount of customers who are most likely to buy a specific product or service. (p.169)

Copyrighted for The Network for Teaching Entrepreneurship, 2010. 12

Entrepreneurial Case Study Marbles: The Brain Store Learning Objectives

Standards Addressed Curriculum Connections

Business Plan Slides

Overview

Students will learn how to use market research to evaluate business opportunities. Students will learn how to organize and analyze market research data in order to make informed decisions about their businesses. [Intentionally Left Blank: List the correlations to any applicable National/State/District Entrepreneurship or College/Core Academic standards.] Entrepreneurship: Owning Your Future 11th Edition o Chapter 6: “Opportunity Recognition” o Chapter 7: “Market Research” “Mission Statement” “Business Profile” “Market Analysis” “Target Market Segment” This case study details the experience of real-life entrepreneur, Lindsay Gaskins; Founder, CEO and President of Marbles: The Brain Store. Following her story from the idea generation phase through the unsuccessful (and then successful) launch of her business, this study shows students the importance of ongoing market research – as an idea generation tool, a method of gathering information about your potential customers, and a way to constantly revise and retool your business according to customer demand. Students are asked to reflect and think critically on the decisions that Lindsay makes to see what they would do with their businesses in similar situations. Ways to organize and analyze target market segment data in order to make informed business decisions are also modeled for students so that they can do the same on their business plans. The study fits well as a bridge between Chapters 6 & 7 in the 11 th Edition textbook. The “pain points” survey is a great tool for students who are still having trouble coming up with a business idea at this point of the course. It also is a great demonstration of why students need to learn market research for their business plans AND as an ongoing tool for their businesses – which can be a great preface for Chapter 7.

Time Needed Materials Needed

1-2 Class Periods (60 - 80 minutes) Copies for each student of the Marbles: The Brain Store Case Study (Attached; pages 5-14) Copies for each students of the Marbles: The Brain Store Case Study Rubric (Attached; page 4)

Copyrighted for The Network for Teaching Entrepreneurship, 2011.

1

Computer with access to You Tube (optional) Projector or Smart Board (optional) Teacher Prep

1. Make copies of the Marbles: The Brain Store Case Study Handout (pages 5-14) for

every student. 2. Make copies of the Marbles: The Brain Store Case Study Rubric (page 4) for every

student. 3. Secure a computer & projector (or smart board) to show the You Tube video at the

end of the Case Study. (optional – can be skipped if school does not allow access to You Tube) Notes for Instructor

NOTE TO TEACHERS – SUGGESTIONS FOR USING CASE STUDIES IN THE CLASSROOM: Be sure to dedicate time for student written responses and discussion – as reflection and critical thinking are the two biggest parts of the case study. The study is broken up into sections where it directs students to “stop.” Use these pauses to have students complete the written responses, and then discuss their answers. Doing each part of the case study appropriately can take 1-2 class periods. If your schedule does not allow that amount of time to dedicate to the activity, students can read and do the written responses for homework, and then discussion can be done in class in 1 class period. However, the learning experience and discussion tends to be richer when all of the students read/think/write/share as a group. Important Definitions Please refer to the “Glossary of Terms” included at the end of the Case Study Handout (p.14) for a full list of vocabulary words used in the reading.

Instruction

Before You Begin 1. Tell students that they are going to be reading and discussing a case study about a real entrepreneur from Chicago, Illinois named Lindsay Gaskins and the true story about the start of her business. 2. Explain to the students what a Case Study is if this is the first one your class has read. Instruction 1. Have students work through the Case Study, either in groups or as a class, stopping at the appropriate breaks to ensure student understanding. 2. Direct students to complete the questions after each section, and then have them share their responses as part of a larger class discussion. Tell students that they should respond in complete sentences with support and reasoning included. 3. Lead the students through the case study. Spend extra time talking about the “Target Market Segment” slide in the case study – and relate it to their business plans. 4. (Optional) Show the class a You Tube video of Lindsay on MSNBC talking about Marbles at http://www.youtube.com/watch?v=bJpZzlxSv7s&feature=related. Note – video supplements case study, but is not necessary to complete the activity. Skip if school internet does not allow access to You Tube. 5. Have a final class discussion around the outcome of the study and their thoughts.

Copyrighted for The Network for Teaching Entrepreneurship, 2011.

2

Assessment

Modifications

Extensions

Students can be assessed on their completion of the Case Study Handout using the Marbles: The Brain Store Case Study Rubric (separate file.) The Case Study can be assigned as an individual assignment, or as a long homework assignment instead of a class assignment. However, there should be some form of discussion in the classroom so that student can see each others’ answers Depending on the students’ reading abilities, the reading can be assigned to be done in small groups or done as a class. Use your best discretion on what works best for your own classroom. For advanced students, students can do additional research on Marbles before reading the case study in class. Eva’s Edible’s Market Research Case Study Have students develop “pain points” surveys for a different target market segments and send them out to collect data. After receiving responses, have students develop their own business ideas using the surveys.

Copyrighted for The Network for Teaching Entrepreneurship, 2011.

3

NFTE Entrepreneurial Case Study Marbles: The Brain Store Student Rubric Student Name: _____________________________________________________________________________ Learning Objectives: Students will learn how to use market research to evaluate business opportunities. Students will learn how to organize and analyze market research data in order to make informed decisions about their businesses. Exceeds Expectations 4 Student responds to all 7 short answer responses with complete sentences.

Meets Expectations 3 Student responds to all 7 short answer responses with incomplete sentences and/or list formats.

Below Expectations 2 Student responds to 5-6 short answer responses with some incomplete sentences and/or list formats.

Little/ No Value 1 Student responds to 4 or less short answer responses

Short Answer Responses

Student responses are complete, grammatically correct; well-thought out; demonstrate that student has thought critically about responses and shows a gain in knowledge towards the learning objectives.

Student responses are complete, student responses sufficiently answer the questions and demonstrate a gain in knowledge towards the learning objectives.

Student responses are complete, student responses do not sufficiently answer the questions and shows misunderstandings towards the learning objectives.

Student responses are incomplete and/or are not relevant to the questions asked.

Class Discussion

Student actively participates in the class discussions. Contributions add new thoughts or insights to the conversation; Responds to questions posed by others.

Student participates in the class discussions. Contribution is on topic and sufficiently answers questions.

Student somewhat participates in the class discussion. Contribution doesn’t add new thoughts to the conversation and/or is not relevant to the question being discussed.

Student does not participate in postactivity discussion.

Completeness

Total: _____________ / 12 possible = ___________ % Notes:

Copyrighted for The Network for Teaching Entrepreneurship, 2011.

4

NFTE Entrepreneurial Case Study Marbles: The Brain Store Student Name: _____________________________________________________________________________ In 2008, former high-school teacher Lindsay Gaskins was looking to start her own company, but she wasn’t sure what type of business she should start that would be successful. She had some good ideas, but she wasn’t sure which of her ideas would actually be a good business opportunity; an idea that fills a customer need or want in the market. In order to help her come up with a good idea, she worked with a business incubator named Sandbox Industries to help develop an idea. At Sandbox, Lindsay was able to spend time with other entrepreneurs brainstorming and evaluating business ideas.

(Incubation Process, Sandbox Industries) To help entrepreneurs be at their most creative during the brainstorming process, the following rules were put in place: Be open minded Do research Study the innovators Visit creative spaces (business & artistic) Read the papers Turn off cell phones Create a creative environment Institute no “bad ideas” Ask a lot of questions What techniques are helpful for you when you are trying to brainstorm or think creatively?

___________________________________________STOP___________________________________________ Copyrighted for The Network for Teaching Entrepreneurship, 2011.

5

One of the other techniques Lindsay and her group used to identify business opportunities was to identify a target market segment first, use primary research about that market to come up with business ideas, and then use secondary research to evaluate the business opportunity.

Indentify Market Segment

Conduct Primary Research (Interviews, Surveys, etc...)

Conduct Secondary Research (Data Collection) The questions they considered included: What are the growing demographics in the US? What are their “pain points” (or things that are problems for them)? The group then sent out surveys to friends and families that fit into the demographics they were targeting to get their responses about their “pain points.” After receiving numerous surveys answers back, one response about “pain points” gave Lindsay the inspiration she needed for her business idea: “I got to the regular gym all the time, but what I really need is a brain gym. My brain is not working like it used to.” – Karen’s Mom, 58 If you were Lindsay, what type of business or businesses would you consider starting based off of this response? Why?

___________________________________________STOP___________________________________________ Copyrighted for The Network for Teaching Entrepreneurship, 2011.

6

but what I really need is a brain gym.

I go to the regular gym all the time

My brain isn't working like it used to

IDEA: A BRAIN GYM! Lindsay had used the “pain points” survey response to come up with an idea – a brain gym! A place where aging and elderly people could work out their brains using mental exercises, as one would work out their muscles at a gym. Now that she had an idea, she needed secondary research to back up her business opportunity. As luck would have it, Lindsay was able to find a great deal of research on new discoveries around brain fatigue. Her secondary research found:

After confirming through research that fighting off mental decline, brain fatigue, Alzheimer’s, dementia, and ADHD was a growing concern for aging Baby Boomers and elderly people, Lindsay decided to move forward with her brain gym idea. She would set up a store where people could buy brain games that worked out different parts of the brain. In May 2008, she set up a store in Woodfield Mall, one of the biggest tourist draws in the State of Illinois, to test if her idea was a good opportunity. To save on high-rental costs and longterm leases, she rented a kiosk at the mall instead of a store front. (Continue) Copyrighted for The Network for Teaching Entrepreneurship, 2011.

7

Lindsay opened her kiosk and had a ton of customers check out her products. Many of these customers expressed interest in products, and thought it was a great idea when she talked about it. However, there was one problem: NO ONE BOUGHT ANYTHING! Lindsay had spent a lot of time researching her idea, and it seemed that it was a good business opportunity. However, she needed to figure out why nobody was buying anything from her store… If Lindsay had found research that people were interested in her product, why do you think Lindsay’s first store was not successful?

If you were Lindsay, what would you do in this scenario? How could you find out from customers why they weren’t interested in buying anything from her store?

___________________________________________STOP___________________________________________ Copyrighted for The Network for Teaching Entrepreneurship, 2011.

8

Lindsay then returned to her business plan to figure out what could be wrong. Eventually, she decided to take a closer look at the target market segment she had originally identified: aging Baby-Boomers and Elderly people. Maybe there was something wrong with her identified target market?

To find out why it didn’t work, Lindsay went back to doing a great deal of primary research – interviewing and surveying people directly – to find out what her target market thought about her product. Her research methods included: Spending time talking with customers Asking customers and potential customers questions about their experience Surveying customers who DID buy something Doing more secondary market research Reviewing the data carefully – and be willing to change the idea based on the research

(Continue)

Copyrighted for The Network for Teaching Entrepreneurship, 2011.

9

After doing further research, Lindsay found that the demand for her product was there, but she was targeting the wrong segment. Her new research found a new target market segment for her store:

Some other key findings from Lindsay’s research were: Many customers wanted to be assured that products were “brain-expert approved” When customers were able to “try-out” a product, they were more likely to buy Customers said that they wanted more of a “book store/library” feel to a “brain gym” If you were Lindsay, what would you do with this new information? How would you change the brain gym idea to be more appealing to this target market?

___________________________________________STOP___________________________________________ Copyrighted for The Network for Teaching Entrepreneurship, 2011. 10

In October of 2008, Lindsay re-imagined her initial idea and opened the first Marbles: The Brain Store in Downtown Chicago. The new format of the store was more appealing to her adjusted target market, and they had used customer feedback to change approaches in the store:

Customer Feedback: Many customers wanted to be assured that products were “brain-expert approved” Change: All products were “brain-expert approved” and arranged in store by the area of the brain it helped; along with news highlights/research studies printed out about the product Customer Feedback: When customers were able to “try-out” a product, they were more likely to buy Change: A larger store with many products out for playing with and testing; employees are trained in the different brain games, and can show people how to use each product Customer Feedback: Customers said that they wanted more of a “book store/library” feel to a “brain gym” Change: They selected a store front instead of a kiosk that resembled a book store in feel, and specifically chose furniture/layout that appealed to younger adults versus children/elderly The changes that Lindsay had implemented were so successful, that she was able to open up three more stores in the Chicagoland area in 2009, four stores in the Midwest in 2010, and ten more stores across the east coast in 2011. While Marbles: The Brain Store has found a way to be successful, Lindsay is still constantly interacting with customers to make sure that they are running the most appealing business possible and making changes when necessary. (Continue) Copyrighted for The Network for Teaching Entrepreneurship, 2011. 11

Lindsay’s growing company has also received a great deal of media attention for their approaches and growth. Watch a brief video of Lindsay on MSNBC talking about the growth that Marbles has experienced. http://www.youtube.com/watch?v=bJpZzIxSv7s&feature=related

From reading this Case Study, why do you think it important to do extensive primary market research to correctly identify your target market?

From reading this Case Study, why do you think it important to do continue to do market research after your business is already up and running?

___________________________________________STOP___________________________________________ Copyrighted for The Network for Teaching Entrepreneurship, 2011. 12

The Story of Marbles: The Brain Store

Lindsay Gaskins Founder, CEO & President; Marbles: The Brain Store

“We’re a one-of-a-kind retail store with a smart collection of hand-picked, expert-tested, certifiably fun ways to a healthier brain for all ages. The best part? Our stores are designed to let you roll up your sleeves and get a little brainy while you play games, solve puzzles, try out software and flip through books to find the right products for you and your noggin. Our team is chockfull of smart, outgoing people who are passionate about learning new things and creating a fun, interactive environment where customers can reach their brain’s fullest potential. Our President and CEO Lindsay Gaskins started Marbles: The Brain Store with the simple idea of finding the best brain games out there and putting them all in one place. Not just products for aging baby boomers concerned about memory loss and victims of brain disorders like stroke, Alzheimer’s, dementia and ADHD. But also products for anyone who wanted to improve focus and attention, enhance creativity, become better multi-taskers and get the most out of the smartest supercomputer out there: the brain. Our idea was supported by some pretty compelling research and mindboggling advances in the field of neuroplasticity. So we went for it — opening a kiosk in May of 2008, one of the deepest parts of the recession and probably not the brightest time to start a new retail store. People thought we had lost our minds. To the contrary, we had just found them. We failed miserably. Which we’re not ashamed to admit. Hey, failure breeds success, right? The idea was great. The products were great. The experience…not so great. But customers loved the concept so we opened our first store in downtown Chicago in October 2008. This time, we got the experience right. With a bigger space, customers could actually play with every product. Our staff had to play with every product, too, in order to field questions from our brainy customers. The response was phenomenal so we opened three more Chicagoland stores in 2009, four more stores in the Midwest in 2010, and now 10 more stores across the east coast in 2011. The rest, they say, is history. Albeit a short one. Which means we’re just getting started.”

A SPECIAL THANK YOU TO MS. LINDSAY GASKINS FOR HER CONTRIBUTIONS TO THIS STUDY!

Copyrighted for The Network for Teaching Entrepreneurship, 2011. 13

Glossary of Terms (Excerpted from the Entrepreneurship: Owning Your Future textbook) Brainstorming – working in a group to help each other generate ideas (p.152) Business Incubator – programs designed to accelerate the successful development of entrepreneurial companies by providing support resources and services through its network of contacts Business Opportunity – consumer need or want that potentially can be met by a new business (p.147) Buying Patterns – the purchasing patterns and buying behavior of your customers, including the rate of use, repetition of purchases, benefits sought, brand preferences, and brand loyalty. Also the purchasing behavior (impulsive or cautious, using cash or credit card) (p.170) Demographics – objective social and economic facts about people. i.e. the age, gender, occupation, and education of your customers. Economic factors, such as household income, family composition, and size. (p.170) Geographics – market segments based on where consumers live or where businesses are located. i.e. the size of the area, density, and location of your customers. Where do they live, work, go to school, or shop? Kiosk – a small independent structure used to sell merchandise, as a newsstand, refreshment stand, etc… Market – a group of potential customers – people or businesses – who are willing and able to purchase a particular product or service Market Research – an organized way to gather and analyze information needed to make business decisions (p.167) Pain Points Survey – a method for generating business opportunities by identifying a target market segment first, and then asking them through surveys to identify problems and annoyances they face – or their “pain points” Primary Market Research – market research methods that collect new information collected directly through potential customers; can include surveys, interviews, etc… (p.171) Psychographics – psychological characteristics of consumers such as attitudes, opinions, beliefs, interests, personality, lifestyle, political affiliation, and personal preferences (p.170) Secondary Market Research – market research methods that collect existing information that was previously gathered for a purpose other than the study at hand (p.171) Target Market Segment – limited amount of customers who are most likely to buy a specific product or service (p.169)

Copyrighted for The Network for Teaching Entrepreneurship, 2011. 14

Recommend Documents
Network Marketing success no matter what. MLM company you are ... success are the exact 3-steps outlined here ... generation, facebook marketing, instagram ...

Feature your listing on my personal website www.RobinSimpson.com. 12. Top promotion on Realtor.com (Showcase) and enhanced listing on Zillow & Trulia.

Strategic focus for CTC e-Marketing: – Content ... Personalization. To employ a solid E-Business infrastructure that allows for ..... B2B (Travel Trade, MCIT).

ing the affair most people wouldn't have noticed it,” says Krabel. “Then it became .... spell the end of traditional marketing and sponsorship. They will continue to ...

seller should either move that customer to a more transactional, low-cost inter- ..... many manufacturers in many countries transparent to consumers drive firms ..... broad interorganizational relationships recover more easily and suffer fewer .... 1

Who is your competition and how do you stack up? — SWOT Analysis. 9 .... ([email protected]). What is your process for contacting those.

Vice President for Enrollment Management and Marketing. Catherine Capolupo. Executive Assistant. Christine Pender. Director of Marketing. Shane LaPrade. Web Content Manager. Aswathy Dinesh. Digital Advertising Specialist. Matthew Vekasy. Marketing. U

May 8, 2017 - Sandoval, Joe. 45. 45 56*. 0. Villalobos, Luis. 39. 39 77*. 0. Ripon. 133 ... Cervantes, Isaiah. 44. 44 59*. 0. Maldonado, Yesenia. 46. 46 54*. 0.

In the saturated mobile game market, developers are in dire need for new app discovery mechanisms. As of today, players are able to choose from two million ...