2. market feasibility

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2. market feasibility

  1. 1.  DEFINE MARKET WHAT DOES IT MEAN BY DEMAND? WHY DOWE NEEDTO DO A DEMANDANALYSIS BEFORE STARTING A BUSINESS?
  2. 2. Can you spot themythical creaturehidden in thislandscape?
  3. 3. POINTING FINGERSCan you tell which of these two fingers is pointing atthe exact center the vertical line? A or B?
  4. 4. TWO SPHERES
  5. 5.  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!
  6. 6.  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
  7. 7.  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
  8. 8.  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
  9. 9.  the level of desire or need that exists forparticular goods or services. CUSTOMER INTEREST IN ACQUIRINGSOMETHING NECESSITY REQUIREMENT
  10. 10.  ANALYSISOF DEMANDTO IDENTIFYTHENEEDS OF CONSUMERS &TO DETERMINEWHETHERTHEY AREWILLING & HAVETHECAPABILITYTO PAY FORTHEPRODUCT/SERVICEA BUSINESS ISCONTEMPLATINGON PRODUCING
  11. 11.  PRODUCTION & IMPORTATION FIGURES OFTHE PAST CREDITAVAILABILITY INCOME DISTRIBUTION POPULATIONGROWTH PRICEVARIATIONS AGECOMPOSITION THE DEGREE OF URBANIZATION TASTES & PREFERENCES MONEY SUPPLY GNP
  12. 12.  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.
  13. 13.  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
  14. 14.  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
  15. 15.  the study of particular aspects of an economy
  16. 16.  PRICE ELASTICITY- MEASURESTHERESPONSE OF QUANTITY DEMANDED OF APARTICULAR PRODUCTTOVARIATIONS INITS PRICE INCOME ELASTICITY- MEASURESTHERESPONSE OF QUANTITY DEMANDED OF APARTICULAR PRODUCTTOVARIATIONS ININCOME
  17. 17.  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
  18. 18.  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
  19. 19.  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.
  20. 20.  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
  21. 21.  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.
  22. 22.  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
  23. 23.  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.
  24. 24.  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.
  25. 25.  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.
  26. 26.  3. PRICES MAY BE AFFECTED BY PRODUCTION COSTS PRICE CONTROLS INFLATION, ETC
  27. 27.  END PRODUCT OFTHE MARKET STUDY “AFTER DEFINING MARKET AND PRICETARGETS,THE MARKETING PROGRAMCOMES IN ASTHE IMPLEMENTINGARM”.
  28. 28.  1. DETERMINETHETYPES OF MARKETINGPROGRAMS PREVALENT INTHE INDUSTRYAND GAUGETHEIR RESPECTIVEEFFECTIVENESS.
  29. 29.  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
  30. 30.  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.
  31. 31.  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.
  32. 32. WORLDS BIGGEST INDOOR SWIMMING-POOL
  33. 33. WORLDS BUSIEST AIRPORT............... NEW YORK
  34. 34. WORLDS LONGEST BRIDGE............... CHINA
  35. 35. These bugs seem tobe moving, but this isactually a staticimage. Note thatwhenever you focuson a particular bug,it seems to stopmoving
  36. 36.  GOD BEWITHYOU!!!

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