CH14Mindmap

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πŸ’‘ Sources of Business Ideas
3 Internal Sources
Brainstorming
Using groups to freely offer any idea to stimulate more ideas and innovation within the business.
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Research and Development (R&D)
Allocate a budget for R&D teams to analyse trends and create new products to meet predicted future demand.
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Intrapreneurship / Employee Suggestions
Encourage employees to be enterprising within their job β€” e.g. idea competitions, staff suggestion boxes.
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5 External Sources
Competitors
Imitate successful products without infringing on patents or copyright laws.
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Trade Shows
Gather ideas at exhibitions with stands for certain markets e.g. the Web Summit for tech.
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Customer Complaints
Review emails, direct messages, live chat or 'Contact Us' submissions to modify or improve a product based on negative feedback.
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Import Substitution
Replace a currently imported product with a domestically produced version to give consumers an option to buy Irish.
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Market Research
Surveys, focus groups and asking the target market directly what they want.
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πŸ”¬ 7 Stages of New Product Development β€” in order ⚠️

Tap each stage to reveal its description

1
Idea Generation
Come up with lots of potential ideas using market research, brainstorming and staff suggestions. Ideas can be internal or external. Quantity over quality at this stage.
2
Product Screening
Vet ideas to pick the one with the most commercial potential β€” discard the impractical and unworkable ones. A SWOT analysis can be used at this stage.
3
Concept Development
Develop the idea into a real product β€” create a USP (Unique Selling Point), add features, design, functions, logo, branding and packaging.
4
Feasibility Study
Check if the idea is viable across three dimensions:
Commercial: is the market big enough?
Financial: break-even analysis β€” can it be produced at a profit?
Productional: can it actually be manufactured?
5
Prototype Development
Create a physical working sample to see how the product looks and functions. Multiple prototypes can be developed and refined until the business is satisfied.
5 Benefits: identify problems (bugs); assess production requirements; determine cost per unit; use for test marketing; attract investors.
6
Test Marketing
Let a group from the target market use the product before the full launch. Gather feedback and make any final changes before committing to full production.
7
Full Production and Launch
Choose the production method (mass, batch or job). Launch with an advertising campaign and public relations such as a press release and media coverage.
πŸ›  Prototype Development β€” 5 Benefits
Identify Problems
Eliminate bugs and design flaws before committing to full production β€” saving the cost of recalling a faulty product later.
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Assess Production Requirements
Identify the labour and machinery (resources) needed before full production begins.
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Determine Cost Per Unit
Calculate the raw materials, time and wages needed per unit to set an accurate selling price and break-even point.
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Use for Test Marketing
Show the prototype to the target market to get early feedback before the full launch.
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Attract Investors
Use the prototype to demonstrate the product's function when seeking finance from investors.
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2021 Q7(A) Internal and external sources of new product ideas. (20) β–Ό
Outline the internal and external sources of new product ideas for businesses such as Moon Moods. (20 marks β€” 4 Γ— 5 (2+3))
✏️ Internal Sources (2 required)
Brainstorming: Using groups to freely offer any idea to stimulate more ideas and innovation. For a business like Moon Moods, staff from design, marketing and production could work together to generate new bedding concept ideas without judgment or restriction.
Research and Development (R&D): Allocating a budget for R&D teams to analyse market trends and create new products to meet predicted future demand. Moon Moods could dedicate resources to researching emerging trends in children's bedding materials and safety standards.
✏️ External Sources (2 required)
Customer Complaints: Reviewing emails, direct messages, live chat and Contact Us submissions to modify or improve products based on negative feedback. Moon Moods could identify common issues raised by parents about their current bedding range and develop improved versions.
Market Research: Conducting surveys and focus groups with the target market to find out what they want. Moon Moods could survey parents and caregivers to understand what features they value most in children's bedding β€” size, material, safety certifications, design themes.
πŸ“Œ MS: 4 Γ— 5m (2+3). Outline = state + explain. No example required unless the question says Illustrate. The question names Moon Moods β€” linking each source to the specific business context earns the application marks. Clearly label which sources are internal and which are external.
2021 Q8(B) Describe the first four stages of new product development. (20) β–Ό
Describe the first four stages involved in the development process of a new product. (20 marks β€” 4 Γ— 5 (2+3))
✏️ Four Stages β€” in correct order
1. Idea Generation: Initial ideas for the new product are thought up systematically. They can come from internal sources (brainstorming, R&D, staff suggestions) or external sources (market research, competitor products, customer feedback). Quantity of ideas is prioritised at this stage.
2. Product Screening: All ideas are vetted and the impractical and unworkable ideas are dropped, leaving the most viable ones for further examination. A SWOT analysis can be used. Careful screening helps businesses avoid wasting resources developing ideas that are not marketable.
3. Concept Development: The chosen idea is turned into an actual product that will meet the needs of customers. A USP (Unique Selling Point) is identified to differentiate it from competitors' products. Features, design, branding, logo and packaging are developed.
4. Feasibility Study: Carried out to assess whether the product has potential. Three areas are examined: commercial viability (is the market big enough?); financial viability (break-even analysis β€” can it be profitable?); productional viability (can it be manufactured?). Government safety standards are also considered.
πŸ“Œ MS: 4 Γ— 5m (2+3). Stages must be in the correct order β€” wrong order loses marks. Each stage needs a name (2m) + development of what it involves (3m). Keywords that earn the 3 marks: brainstorming/market research (Idea Generation); SWOT/commercial potential (Screening); USP/branding (Concept); commercial/financial/productional viability (Feasibility).
2025 Q7(B) Illustrate four NPD stages (excluding launch) for Glanbia. (20) β–Ό
Illustrate four stages, apart from launch, that Glanbia may use for developing a new product. (20 marks β€” 4 Γ— 5 (2+2+1))
✏️ Four Stages β€” Illustrate = explain + example/reference
Idea Generation: Initial ideas for a new product are generated systematically from internal or external sources such as brainstorming and market research. e.g. Glanbia's R&D team could analyse consumer trends in nutrition and sports performance to identify gaps in their product range.
Product Screening: All ideas are vetted and impractical ones discarded, leaving the most commercially viable ones for development. e.g. Glanbia could use a SWOT analysis to assess each idea against their strengths in dairy nutrition and current market demand.
Concept Development: The chosen idea is turned into an actual product with a USP, branding and features that differentiate it. e.g. Glanbia could develop a new Optimum Nutrition protein product with a unique Irish ingredient blend as its USP.
Prototype Development: A physical working sample is created to test how the product looks and functions. e.g. Glanbia could produce trial batches of the new product to assess its taste, texture and nutritional profile before committing to full production.
πŸ“Œ MS: 4 Γ— 5m (2+2+1). Illustrate = explain + example linked to Glanbia. The (+1) mark is the Glanbia reference β€” it is required and stated in the marking scheme. Any four stages (except launch) are acceptable in any order, but must be clearly named and explained.
2016 Q6(A) Outline reasons why businesses engage in prototype development. (15) β–Ό
Outline the reasons why businesses engage in prototype development. (15 marks β€” 3 Γ— 5 (2+3))
✏️ Three Benefits
Identify Problems: The prototype allows the business to eliminate bugs and design flaws before committing to full production. Problems identified and corrected at the prototype stage are far cheaper to fix than recalls after launch.
Assess Production Requirements: Creating the prototype reveals the labour, machinery and materials needed for full-scale production. Engineering and production issues can be addressed before expensive machinery is purchased or committed.
Determine Cost Per Unit: Working through the prototype allows the business to calculate the raw materials, time and wages required per unit, enabling an accurate selling price to be set and a reliable break-even analysis to be conducted.
πŸ“Œ MS: 3 Γ— 5m (2+3). Other valid reasons: use for test marketing (show prototype to target market before launch); attract investors (demonstrate product function when seeking finance). Any three of the five benefits earns full marks.
2013 ABQ(A) / 2019 Q6(A) NPD stages applied to a business β€” ABQ format with direct quote. (30/20) β–Ό
Outline the stages involved in the product development process. Refer to the text in your answer. (30 marks ABQ β€” 5 Γ— 6 (2+2+2) Name/Explain/Link)
✏️ ABQ Format: Name β†’ Explain (keywords) β†’ Direct Quote
Idea Generation: Initial ideas for the new product are thought up systematically from internal or external sources β€” brainstorming, market research, staff suggestions.
Direct Quote: "Their design team recently identified some ideas for new games in action-adventure, music, and e-learning."
Product Screening: All ideas are vetted β€” impractical and unworkable ones are dropped, leaving the most commercially viable one for further development.
Direct Quote: "After reviewing the various ideas put forward, 'Knights' Domain', a new action-adventure game, was chosen."
Concept Development: The idea is turned into an actual product β€” a USP is identified to differentiate it from competitors' products.
Direct Quote: "The design team decided to use Irish music and cutting-edge graphics to set the game apart."
Feasibility Study: Assesses commercial viability, financial viability (break-even) and productional viability β€” can it be made and will it be profitable?
Direct Quote: "Jane completed a business report, including a detailed break-even analysis, to determine the potential of 'Knights' Domain'."
πŸ“Œ ABQ format for NPD: Name the stage (2m) β†’ Explain using keywords (2m) β†’ Direct word-for-word quote from the passage (2m). No quote = no link mark. Each stage must be answered in the correct sequence β€” stages out of order lose marks.
The following topics are identified as 2026 must-knows for Chapter 14: Identifying Business Opportunities based on past paper frequency and the 2026 trend master sheet.
NPD stages β€” in correct order, applied to a named business Hot
Listed as a 2026 must-know. Has appeared in almost every exam cycle. 2025 Q7(B) used Glanbia (Illustrate 4 stages, excl. launch, 4 Γ— 5m (2+2+1)). 2021 Q8(B) first four stages (4 Γ— 5m (2+3)). The ABQ version (2013) was 5 stages Γ— 6m (2+2+2) with direct quotes. Stages must always be in correct order. Past papers: 2025 Q7(B), 2021 Q8(B), 2019 Q6(A), 2017 Q5(A), 2013 ABQ(A).
Internal and external sources of business ideas Hot
Has appeared in 2023 Q7(A), 2021 Q7(A), 2013 Q6(A), 2011 Q6(C). Know all 3 internal and all 5 external sources with precise keywords. The question usually names a business β€” link each source to the specific business context. Outline = state + explain (no example needed unless Illustrate). Past papers: 2023 Q7(A), 2021 Q7(A), 2013 Q6(A).
Prototype Development β€” benefits Watch
Appeared as a standalone 15-mark question in 2016 Q6(A) and was referenced in 2022 Q7(A). Know all 5 benefits: identify problems (bugs), assess production requirements, determine cost per unit, use for test marketing, attract investors. Any 3 earn full marks on a 15-mark question. Past papers: 2016 Q6(A), 2022 Q7(A).
Feasibility Study β€” what it checks Watch
Appeared as a standalone question in 2011 Q7(C) and as a stage within NPD questions. Know the three types: commercial viability (is the market big enough?), financial viability (break-even analysis), productional viability (can it be made?). Often confused with Prototype Development β€” know the distinction clearly. Past papers: 2011 Q7(C), 2008 Q7(C), embedded in NPD stage questions.
NPD Stages
Order is essential ⚠️
The 7 NPD stages must always be answered in the correct order. Each stage depends on completion of the one before it β€” wrong order loses marks. The memory is: I G S C F P T L β€” "I Generate Some Concepts For Product Testing at Launch."
1 Idea Generation β†’ 2 Product Screening β†’ 3 Concept Development β†’ 4 Feasibility Study β†’ 5 Prototype Development β†’ 6 Test Marketing β†’ 7 Full Production and Launch
Illustrate (NPD)
Name + Explain + Business Link
When asked to Illustrate NPD stages for a named business (e.g. Glanbia), each stage earns marks for: naming it (2m) + explaining what it involves (2m) + linking it specifically to Glanbia with an example (1m). Generic answers without the business reference miss the application mark.
"Feasibility Study β€” assesses commercial, financial and productional viability β€” e.g. Glanbia's finance team would conduct a break-even analysis to determine if the new product can be produced profitably."
ABQ β€” NPD
State β†’ Explain β†’ Direct Quote
In the ABQ, each NPD stage earns marks for: naming the stage, explaining it using keywords, and including a direct word-for-word quote from the passage. The quote earns 2 marks β€” missing it costs 2 marks per stage. Always read the text carefully before answering to find the relevant quote for each stage.
"Product Screening β€” impractical ideas are dropped leaving the most viable β€” 'After reviewing the various ideas put forward, Knights' Domain was chosen.'"
Sources of Ideas
Label internal vs external clearly
Always clearly label which sources are internal and which are external. The question awards marks for the distinction β€” mixing them up or failing to label loses marks. Internal = inside the business. External = from outside the business.
Internal: Brainstorming, R&D, Intrapreneurship/Employee Suggestions.
External: Competitors, Trade Shows, Customer Complaints, Import Substitution, Market Research.