2. market feasibility
Upcoming SlideShare
Loading in...5
×
 

2. market feasibility

on

  • 448 views

 

Statistics

Views

Total Views
448
Views on SlideShare
448
Embed Views
0

Actions

Likes
0
Downloads
10
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

2. market feasibility 2. market feasibility Presentation Transcript

  •  DEFINE MARKET WHAT DOES IT MEAN BY DEMAND? WHY DOWE NEEDTO DO A DEMANDANALYSIS BEFORE STARTING A BUSINESS?
  • Can you spot themythical creaturehidden in thislandscape?
  • POINTING FINGERSCan you tell which of these two fingers is pointing atthe exact center the vertical line? A or B?
  • TWO SPHERES
  •  LIFEBLOODOFVIRTUALLY EVERY PROJECTFEASIBILITY STUDY FOCAL POINT OF A PROJECT STUDY-PROFITABILITY MOST BASIC ISSUE- DEMAND NO DISCUSSION OF PROFITABILITY OR OFTHE OTHER ASPECTS OFTHE FEASIBILITYSTUDY IFTHERE IS NO DEMAND!
  •  gathering for buying and selling: a gathering ina public place for buying and sellingmerchandise or farm products, especially oneheld regularly A PLACE FOR BUYING & SELLING GOODS &SERVICESTO SATISFY HUMAN WANTS The whole area of economic activity in which thelaws of supply and demand operate, oftenthought of as a regulatory force affecting botheconomic and political affairs. THETRADE IN A PARTICULAR COMMODITY
  •  THE SIZE, NATURE, & GROWTH OFTOTALDEMAND FORTHE PRODUCT OR SERVICES THE DESCRIPTION & PRICE OFTHEPRODUCTTO BE SOLD THE SUPPLY SITUATIONANDTHE NATUREOF COMPETITION THE DIFFERENT FACTORS AFFECTINGTHEMARKET OFTHE PRODUCT/SERVICE THEAPPROPRIATE MARKETING PROGRAMFORTHE PRODUCT/ SERVICE
  •  NAME OFTHE PRODUCT/ SERVICE POPULAR & SCIENTIFIC (IF ANY) &THE REASONFOR CHOOSING IT PROPERTIESOFTHE PRODUCT/SERVICE PHYSICAL, CHEMICAL, &/ OR AGRONOMIC USESOFTHE PRODUCT/ SERVICE ASA FINISHED COMMODITY, AS AN INPUTTOOTHER PRODUCTION ACTIVITIES MAJOR USERS OFTHE PRODUCT/SERVICE INDIVIDUALS &/OR FIRMS GEOGRAPHICALAREASOF DISPERSION WHERETHE PRODUCT IS MOSTLY FOUND
  •  the level of desire or need that exists forparticular goods or services. CUSTOMER INTEREST IN ACQUIRINGSOMETHING NECESSITY REQUIREMENT
  •  ANALYSISOF DEMANDTO IDENTIFYTHENEEDS OF CONSUMERS &TO DETERMINEWHETHERTHEY AREWILLING & HAVETHECAPABILITYTO PAY FORTHEPRODUCT/SERVICEA BUSINESS ISCONTEMPLATINGON PRODUCING
  •  PRODUCTION & IMPORTATION FIGURES OFTHE PAST CREDITAVAILABILITY INCOME DISTRIBUTION POPULATIONGROWTH PRICEVARIATIONS AGECOMPOSITION THE DEGREE OF URBANIZATION TASTES & PREFERENCES MONEY SUPPLY GNP
  •  MACROECONOMICSVARIABLES ECONOMIC DATATHAT ADD UPTHE ACTIVITIES OFCONSUMERS, FIRMS, GOV’T, &THE IMPORT-EXPORTSECTORS▪ EX.▪ STUDYGNP & ITS COMPONENTS- IF GNP IS EXPECTEDTO RISERAPIDLY, BUSINESSMENCOULDORDINARILY EXPECT GOODTIMES FORTHEIR BUSINESS.▪ OR IF ONE IS PLANNINGTO ON SELLINGA PRODUCT FOR MASSCONSUMPTION, HE MIGHT GIVE MOREATTENTIONTOTHEGROWTH RATE OF A GNP COMPONENT, PERSONALCONSUMPTION EXPENDITURES.▪ OR A PRODUCEROF EQUIPMENTWOULD BE MORE INTERESTEDINTHE GROSS DOMESTIC CAPITAL FORMATIONCOMPONENT▪ AN EXPLORERWOULD,OF COURSE, BE INTERESTED INTHEEXPORT OF GOODS AND SERVICES ITEMS.
  •  study of large-scale economic systems: abranch of economics that focuses on thegeneral features and processes that make upa national economy and the ways in whichdifferent segments of the economy areconnected
  •  MICROECONOMICSVARIABLES DATA ONTHE LEVEL OF INDIVIDUAL FIRM ORAT LEAST ONTHE LEVEL OF AN INDUSTRYGROUPING.▪ DEMAND FOR A FIRM’S PRODUCT▪ PRICEOFTHE PRODUCT▪ PRICEOFTHE SUBSTITUTE PRODUCT▪ INCOME▪ POPULATION▪ * ANANALYSIS OF INCOME DISTRIBUTION-TYPE OFPRODUCTS/SERVICECONSUMERSCAN AFFORD
  •  the study of particular aspects of an economy
  •  PRICE ELASTICITY- MEASURESTHERESPONSE OF QUANTITY DEMANDED OF APARTICULAR PRODUCTTOVARIATIONS INITS PRICE INCOME ELASTICITY- MEASURESTHERESPONSE OF QUANTITY DEMANDED OF APARTICULAR PRODUCTTOVARIATIONS ININCOME
  •  WHO &WHERE ISTHE MARKET? TYPE MANNER OF USE INCOME CLASSIFICATION LOCATION AGE, ETC. WHAT ISTHETOTAL DOMESTIC DEMAND FROMTHE HISTORICAL POINT OFVIEW? ISTHERE A FOREIGN MARKET? EVALUATE DEMAND GROWTH PATTERNS INTHEPAST & PROJECT FUTURE DEMAND BY APPLYINGAPPROPRIATE PROJECTION METHODS
  •  quantity available in market: the quantity ofa good or service available in a market at aspecific time. an amount or quantity of something availablefor use. SOURCE
  •  WHO &WHERE ARETHE DIRECT COMPETITORS? SIZE PRODUCT QUALITY LOCATION PERFORMANCE MARKET-SEGMENT PERFORMANCE HISTORICAL DOMESTIC SUPPLY AS COMPRISE BYLOCAL PRODUCTION & IMPORTATIONS FOREIGN MARKET- HISTORICAL SUPPLY PATTERNS INTHETARGETED COUNTRIES AS COMPRISED BYTHEIRLOCAL PRODN & IMPORTATIONS EVALUATE SUPPLY GROWTH PATTERNS & PROJECTFUTURE SUPPLY BY APPLYING APPROPRIATEPROJECTION METHODS.
  •  COMPARETHE DEMANDAND SUPPLYTRENDS DETERMINETHE AMOUNT OF DEMANDUNSATISFIED, ESP INTHE PROJECTIONS. IF FAIRLY SATISFIED▪ WHETHERTHE FACTORS AFFECTINGTHE MARKET MAYDISRUPTTHE EQUILIBRIUM SO ASTO CAUSE DEMANDTOGROW FASTERTHAN SUPPLY▪ WHETHERTHE QUALITY OFTHE PRODUCT IS SUCHTHATIT MAY CREATE ADDITIONAL DEMAND OR REDIRECT PARTOF EXISTING DEMAND IN ITS FAVOR DETERMINETHE SHARE OFTHE MARKET BYESTABLISHINGTHE PROPOSED PRODNVOLUME (DETERMINED INTHETECHNICALSTUDY)ASAGAINSTTHETOTAL MARKET SIZE
  •  IN ECONOMICTHEORY, PRICE ISDETERMINED MAINLY BYTHE DEMAND-SUPPLY SITUATION. AN INCREASE IN DEMAND WITH SUPPLYCONSTANT WILL HIKE PRICES. AN INCREASE IN SUPPLY WITH DEMANDCONSTANT WILL DECLINE PRICES.
  •  OTHER FACTORSTHAT INFLUENCE PRICES: W/O ANY CHANGE IN DEMAND OR SUPPLY,PRICES MAY GO UP IF RAW MATERIAL COSTSRISE; OR PRICES MAY DECLINE IFTHE GOV’T DECIDESTOSUBSIDIZE PRODN
  •  PRICES MAY ALSO BE DETERMINED BYTHE SIMPLECOST-PLUSMETHODOF ACCOUNTANTS. DETERMINETHE SELLING PRICE OF ALL SIMILARAND SUBSTITUTEPRODUCTS. LOOK INTOTHE HISTORY OFTHESE PRICES (INCLUDINGTHERANGE OF FLUCTUATIONS) & ESTABLISTTHE FACTORSTHATMOSTLY INFLUENCETHEIR FLUCTUATIONSOVERTIME. DETERMINETHE RESPONSIVENESSOF DEMANDTO PRICECHANGES.WILLTHERE BE ATREMENDOUS, SLIGHT,ORNEGLIGIBLE INCREASE OR DECREASE IN DEMAND IF PRICESARELOWEREDOR RAISED? ESTABLISHEDTHE PRODUCT’S SELLING PRICE,TAKING INTOCONSIDERATIONALL OFTHE ABOVE,THE MARKET SEGMENTTARGETED,ANDTHE OPERATINGCOSTS & EXPENSES(DETERMINED INTHETECHNICAL & FINANCIAL STUDIES).LIKEWISE, ESTIMATETHE INCREASE FORESEEN IN SUBSEQUENTYEARS.
  •  1. DEMAND MAY BE SIGNIFICANTLY AFFECTEDBY: POPULATION GROWTH INCOME CHANGES TASTES RURAL/URBAN DEVELOPMENTS PRICE OF SUBSTITUTESAND COMPLIMENTARYPRODUCTS,AND MARKETINGTOOLS▪ ADVERTISING▪ PROMOTIONS▪ CREDIT POLICIES, ETC.
  •  2. SUPPLY MAY BE INFLUENCED BY THE DEV’T OF SUBSTITUTE PRODUCTS, THE ENTRY OR EXIT OF FIRMS, SOURCES AND COST OF PRODUCTIONFACTORS, GOV’T POLICIES, IMPROVEDTECHNOLOGY, ETC.
  •  3. PRICES MAY BE AFFECTED BY PRODUCTION COSTS PRICE CONTROLS INFLATION, ETC
  •  END PRODUCT OFTHE MARKET STUDY “AFTER DEFINING MARKET AND PRICETARGETS,THE MARKETING PROGRAMCOMES IN ASTHE IMPLEMENTINGARM”.
  •  1. DETERMINETHETYPES OF MARKETINGPROGRAMS PREVALENT INTHE INDUSTRYAND GAUGETHEIR RESPECTIVEEFFECTIVENESS.
  •  2. DRAW UP A MARKETING PLANTHATIDENTIFIESTHETGT MARKET,THE SELLINGPRICE,THE PACKAGINGOFTHE PRODUCT,THE DISTRIBUTION NETWORK,THE SALESMGT MECHANISM, &THE ADVERTISING &PROMOTIONS PROGRAM. IMPORTANT COMPONENTS OF A MKTG PROGRAM:▪ PRODUCT▪ PRICE▪ PLACE▪ PROMOTIONS
  •  3. DESIGNTHE MARKETING ORGANIZATIONW/CWILL IMPLEMENTTHE PLAN & DETERMINETHECOST INVOLVED. THE ORGANIZATIONWOULD AGAIN DEPEND GREATLYONTHETYPE OF PRODUCT BEING MARKETED. INGENERAL, A CONSUMER PRODUCT WOULD REQUIRE ASIZEABLE ORGANIZATIONTHAT CONCENTRATES ONDISTRIBUTION CHANNELS & PROMOTIONS. NON-CONSUMER ITEMS WOULD PROBABLY REQUIREEITHER A DISTRIBUTION NETWORK OR A SMALL-SIZEDSALES FORCE. IN ANY CASE,THE MOST IDEALORGANIZATION IS ONETHAT ALLOWS MAXIMUMEFFICIENCY ATTHE LOWEST MANPOWER LEVELPOSSIBLE.
  •  THE SALES PROMOTION PLAN ANDTHE CHANNELS OFDISTRIBUTION SHOULD BE APPROPRIATETOTHE PRODUCT ANDTHE MARKET. THE CONSUMER BUYING HABITS INTHE PARTICULAR FIELDSHOULD BE CONSIDERED INTHE SELECTION OF OUTLETS. POTENTIAL DISTRIBUTORS MAY INCLUDE RETAILERS WHOLESALERS JOBBERS INDUSTRIAL LEADERS INDUSTRIAL DISTRIBUTORS MANUFACTURER’SAGENTS A PLAN FOR CONSUMER CREDIT AND FINANCING, AND FORSALES ALLOWANCES CAN BE FORMULATED ONTHE BASIS OFMARKETING CHANNELS SELECTED.
  • WORLDS BIGGEST INDOOR SWIMMING-POOL
  • WORLDS BUSIEST AIRPORT............... NEW YORK
  • WORLDS LONGEST BRIDGE............... CHINA
  • These bugs seem tobe moving, but this isactually a staticimage. Note thatwhenever you focuson a particular bug,it seems to stopmoving
  •  GOD BEWITHYOU!!!