Aida Lim

Chapter 11 Unique Marketing Issues Selecting a Market and Establishing a Position  ·          Segmenting the Market : to study the industry in which the firm intends to compete and determine the different potential target markets in that industry.  ·          Selecting a Target Market A niche market is a place within a market segment that represents a narrow group of customers with similar interest. ·          Crafting a Unique Market Position Branding Brand management is a program used to protect the image and value of an organization’s brand in customers’ minds. Creating buzz means creating awareness and a sense of anticipation about a company and its offerings. Brand equity is the term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm’s valuation.  The 4Ps of M...

Chapter 10 Getting Financing or Funding Why most new ventures need funding 1.       Cash Flow Challenges : Inventory must be purchased, employees must be trained and paid, and advertising must be paid for before cash be paid for before cash is generated from sales. If a firm operates in the red, its negative real time cash flow, usually computed monthly is called its burn rate. A company burn rate is the rate at which it is spending its capital until it reaches profitability. 2.       Capital Investments: The cost of buying real estate, building facilities, and purchasing equipment typically exceeds a firm’s ability to provide funds for these needs on its own. 3.       Lengthy Product Development Cycles : Some products are under development for years before they generate earnings. The up-front costs often exceed a firm’s ability to fund these activities on its own. Sources of Personal Financ...

Chapter 9 Building a New-Venture Team A new venture team is the group of founders, key employees, and advisers that move a new venture from an idea to a fully functioning firm. Liability of newness as a challenge refers to the fact that companies often falter because the people who start them aren’t able to adjust quickly enough to their new roles and because the firm lacks a “track record” with outside buyers and suppliers. The founder or founders Founders characteristic and their decisions significantly affect the way an entrepreneurial venture is received and the manner in which the new venture team takes shape. Size of the founding team: a new venture is started by a team, there are several issue that affect the value of the team 1.       The team have to worked together before as opposed to tens that are working together for the first time, have an edge. 2.       If the members of the team are heteroge...