ST.11 Evaluate ideas for new markets, products and selling points

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OVERVIEW

The aim of this activity is to evaluate in a systematic manner the ideas previously generated for new markets, products and selling points.

INPUT

Ideas for new products, markets and selling points from the activity ST.10 Generate ideas for new products, markets and selling points.

OUTPUT

An initial estimate of the risks and benefits associated with each new combination of product, market and selling point. This output is used in the activity ST.12 Select which ideas for new markets, products and selling points to include in the strategy proposal.

TEMPLATE

HOW TO GO ABOUT IT

1.

Select one of the ideas you have generated for a new product, market or selling point. The first step is to define the specific combination of a market, a product and a selling point. For example, if it is an idea for a new product, decide if it would be sold into an existing market using an existing selling point. If it would, continue directly to step 2. Otherwise decide what market it would be sold into and what selling point would be used before proceeding to step 2. Similarly, for a new market idea you must first define the product and selling point; and for a new selling point idea you must define the product and market.

2.

Enter the details of the market, product and selling point you have defined in the Risk Evaluation section of the Strategy Idea Evaluation template.

3.

For the risk evaluation, simply state if the market, product and selling point are new or based on an existing one. Where something is new, give it a score of 1 and if it is based on the existing situation give it a score of 0. Add up each of the scores to get a rating, where a total of 0 is ‘Low’, 1 is ‘Medium’, 2 is ‘High’ and 3 is ‘Very High’.

4.

For the benefits evaluation, you will need to do some basic research to estimate the economic, environmental and social benefits of the idea. The benefits should be quantified where possible, keeping in mind that these will be very approximate figures at this stage.

5.

Identify which of the strategic goals the benefits will contribute to. If an idea does not contribute to any of the strategic goals then it should be eliminated from further consideration.

6.

Repeat this process for each of the ideas generated until you have evaluated all of them.

Tips & Tricks

ESTIMATION OF BENEFIT

The potential benefits you estimate will be very approximate at this stage but they can be improved as you define the idea more precisely later in the process.

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