create a new business ideas, and choose two of your favorites. In this activity, you’ll evaluate one of those two ideas. Instructions Choose one of your ideas. You’ll evaluate based on what you learned in your Enterprise Creation reading. Write a bullet-point outline of your evaluation. It should cover the following elements: Needs Experience Resources Customers Business Model (include all six elements) Revenue Sources: Who are the various customer groups that will buy this product or service from you? Pricing: How much will you charge customers for this product or service? Cost of Goods: What will it cost you to make this product or service? Gross Margin: This is the sales price minus the cost of the product, divided by the sales price. For example, if you sell a product for $100 and your cost for the product is $50, then you make $50, which is a 50 percent gross margin. The higher this percentage, the more you retain of each dollar of sales to cover other costs you incur. Operating Costs: What are all of your other expenses for selling this product or service? For example, labor, materials, packaging, delivery, commission, and so forth. Profit Margin: This is the sales price minus the cost of the product, minus all other operating costs, divided by the sales price. For example; if you sell a product for $100 that cost you $50 with additional operating costs of $30, then you make $20, which is a 20 percent profit margin.

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Instructions

Choose one of your ideas. You’ll evaluate based on what you learned in your Enterprise Creation reading.

Write a bullet-point outline of your evaluation. It should cover the following elements:

Needs
Experience
Resources
Customers
Business Model (include all six elements)

Revenue Sources: Who are the various customer groups that will buy this product or service from you?
Pricing: How much will you charge customers for this product or service?
Cost of Goods: What will it cost you to make this product or service?
Gross Margin: This is the sales price minus the cost of the product, divided by the sales price.
- For example, if you sell a product for $100 and your cost for the product is $50, then you make $50, which is a 50 percent gross margin. The higher this percentage, the more you retain of each dollar of sales to cover other costs you incur.
Operating Costs: What are all of your other expenses for selling this product or service?
- For example, labor, materials, packaging, delivery, commission, and so forth.
Profit Margin: This is the sales price minus the cost of the product, minus all other operating costs, divided by the sales price.
- For example; if you sell a product for $100 that cost you $50 with additional operating costs of $30, then you make $20, which is a 20 percent profit margin.

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In a Word document, write your answer to the following prompts:

Describe the process that you participated in to identify new business ideas and a true business opportunity.
What did you personally learn that you will use in doing similar work professionally?

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