7. LIFEBLOODOFVIRTUALLY EVERY PROJECT
FEASIBILITY STUDY
FOCAL POINT OF A PROJECT STUDY-
PROFITABILITY
MOST BASIC ISSUE- DEMAND
NO DISCUSSION OF PROFITABILITY OR OF
THE OTHER ASPECTS OFTHE FEASIBILITY
STUDY IFTHERE IS NO DEMAND!
8. gathering for buying and selling: a gathering in
a public place for buying and selling
merchandise or farm products, especially one
held regularly
A PLACE FOR BUYING & SELLING GOODS &
SERVICESTO SATISFY HUMAN WANTS
The whole area of economic activity in which the
laws of supply and demand operate, often
thought of as a regulatory force affecting both
economic and political affairs.
THETRADE IN A PARTICULAR COMMODITY
9. THE SIZE, NATURE, & GROWTH OFTOTAL
DEMAND FORTHE PRODUCT OR SERVICES
THE DESCRIPTION & PRICE OFTHE
PRODUCTTO BE SOLD
THE SUPPLY SITUATIONANDTHE NATURE
OF COMPETITION
THE DIFFERENT FACTORS AFFECTINGTHE
MARKET OFTHE PRODUCT/SERVICE
THEAPPROPRIATE MARKETING PROGRAM
FORTHE PRODUCT/ SERVICE
10. NAME OFTHE PRODUCT/ SERVICE
POPULAR & SCIENTIFIC (IF ANY) &THE REASON
FOR CHOOSING IT
PROPERTIESOFTHE PRODUCT/SERVICE
PHYSICAL, CHEMICAL, &/ OR AGRONOMIC
USESOFTHE PRODUCT/ SERVICE
ASA FINISHED COMMODITY, AS AN INPUTTO
OTHER PRODUCTION ACTIVITIES
MAJOR USERS OFTHE PRODUCT/SERVICE
INDIVIDUALS &/OR FIRMS
GEOGRAPHICALAREASOF DISPERSION
WHERETHE PRODUCT IS MOSTLY FOUND
11. the level of desire or need that exists for
particular goods or services.
CUSTOMER INTEREST IN ACQUIRING
SOMETHING
NECESSITY
REQUIREMENT
12. ANALYSISOF DEMANDTO IDENTIFYTHE
NEEDS OF CONSUMERS &TO DETERMINE
WHETHERTHEY AREWILLING & HAVETHE
CAPABILITYTO PAY FORTHE
PRODUCT/SERVICEA BUSINESS IS
CONTEMPLATINGON PRODUCING
13. PRODUCTION & IMPORTATION FIGURES OF
THE PAST
CREDITAVAILABILITY
INCOME DISTRIBUTION
POPULATIONGROWTH
PRICEVARIATIONS
AGECOMPOSITION
THE DEGREE OF URBANIZATION
TASTES & PREFERENCES
MONEY SUPPLY
GNP
14. MACROECONOMICSVARIABLES
ECONOMIC DATATHAT ADD UPTHE ACTIVITIES OF
CONSUMERS, FIRMS, GOV’T, &THE IMPORT-EXPORT
SECTORS
▪ EX.
▪ STUDYGNP & ITS COMPONENTS- IF GNP IS EXPECTEDTO RISE
RAPIDLY, BUSINESSMENCOULDORDINARILY EXPECT GOOD
TIMES FORTHEIR BUSINESS.
▪ OR IF ONE IS PLANNINGTO ON SELLINGA PRODUCT FOR MASS
CONSUMPTION, HE MIGHT GIVE MOREATTENTIONTOTHE
GROWTH RATE OF A GNP COMPONENT, PERSONAL
CONSUMPTION EXPENDITURES.
▪ OR A PRODUCEROF EQUIPMENTWOULD BE MORE INTERESTED
INTHE GROSS DOMESTIC CAPITAL FORMATIONCOMPONENT
▪ AN EXPLORERWOULD,OF COURSE, BE INTERESTED INTHE
EXPORT OF GOODS AND SERVICES ITEMS.
15. study of large-scale economic systems: a
branch of economics that focuses on the
general features and processes that make up
a national economy and the ways in which
different segments of the economy are
connected
16. MICROECONOMICSVARIABLES
DATA ONTHE LEVEL OF INDIVIDUAL FIRM OR
AT LEAST ONTHE LEVEL OF AN INDUSTRY
GROUPING.
▪ DEMAND FOR A FIRM’S PRODUCT
▪ PRICEOFTHE PRODUCT
▪ PRICEOFTHE SUBSTITUTE PRODUCT
▪ INCOME
▪ POPULATION
▪ * ANANALYSIS OF INCOME DISTRIBUTION-TYPE OF
PRODUCTS/SERVICECONSUMERSCAN AFFORD
17. the study of particular aspects of an economy
18. PRICE ELASTICITY- MEASURESTHE
RESPONSE OF QUANTITY DEMANDED OF A
PARTICULAR PRODUCTTOVARIATIONS IN
ITS PRICE
INCOME ELASTICITY- MEASURESTHE
RESPONSE OF QUANTITY DEMANDED OF A
PARTICULAR PRODUCTTOVARIATIONS IN
INCOME
19. WHO &WHERE ISTHE MARKET?
TYPE
MANNER OF USE
INCOME CLASSIFICATION
LOCATION
AGE, ETC.
WHAT ISTHETOTAL DOMESTIC DEMAND FROM
THE HISTORICAL POINT OFVIEW?
ISTHERE A FOREIGN MARKET?
EVALUATE DEMAND GROWTH PATTERNS INTHE
PAST & PROJECT FUTURE DEMAND BY APPLYING
APPROPRIATE PROJECTION METHODS
20. quantity available in market: the quantity of
a good or service available in a market at a
specific time.
an amount or quantity of something available
for use.
SOURCE
21. WHO &WHERE ARETHE DIRECT COMPETITORS?
SIZE
PRODUCT QUALITY
LOCATION
PERFORMANCE
MARKET-SEGMENT PERFORMANCE
HISTORICAL DOMESTIC SUPPLY AS COMPRISE BY
LOCAL PRODUCTION & IMPORTATIONS
FOREIGN MARKET- HISTORICAL SUPPLY PATTERNS IN
THETARGETED COUNTRIES AS COMPRISED BYTHEIR
LOCAL PRODN & IMPORTATIONS
EVALUATE SUPPLY GROWTH PATTERNS & PROJECT
FUTURE SUPPLY BY APPLYING APPROPRIATE
PROJECTION METHODS.
22. COMPARETHE DEMANDAND SUPPLYTRENDS
DETERMINETHE AMOUNT OF DEMAND
UNSATISFIED, ESP INTHE PROJECTIONS.
IF FAIRLY SATISFIED
▪ WHETHERTHE FACTORS AFFECTINGTHE MARKET MAY
DISRUPTTHE EQUILIBRIUM SO ASTO CAUSE DEMANDTO
GROW FASTERTHAN SUPPLY
▪ WHETHERTHE QUALITY OFTHE PRODUCT IS SUCHTHAT
IT MAY CREATE ADDITIONAL DEMAND OR REDIRECT PART
OF EXISTING DEMAND IN ITS FAVOR
DETERMINETHE SHARE OFTHE MARKET BY
ESTABLISHINGTHE PROPOSED PRODN
VOLUME (DETERMINED INTHETECHNICAL
STUDY)ASAGAINSTTHETOTAL MARKET SIZE
23. IN ECONOMICTHEORY, PRICE IS
DETERMINED MAINLY BYTHE DEMAND-
SUPPLY SITUATION.
AN INCREASE IN DEMAND WITH SUPPLY
CONSTANT WILL HIKE PRICES.
AN INCREASE IN SUPPLY WITH DEMAND
CONSTANT WILL DECLINE PRICES.
24. OTHER FACTORSTHAT INFLUENCE PRICES:
W/O ANY CHANGE IN DEMAND OR SUPPLY,
PRICES MAY GO UP IF RAW MATERIAL COSTS
RISE; OR
PRICES MAY DECLINE IFTHE GOV’T DECIDESTO
SUBSIDIZE PRODN
25. PRICES MAY ALSO BE DETERMINED BYTHE SIMPLECOST-PLUS
METHODOF ACCOUNTANTS.
DETERMINETHE SELLING PRICE OF ALL SIMILARAND SUBSTITUTE
PRODUCTS.
LOOK INTOTHE HISTORY OFTHESE PRICES (INCLUDINGTHE
RANGE OF FLUCTUATIONS) & ESTABLISTTHE FACTORSTHAT
MOSTLY INFLUENCETHEIR FLUCTUATIONSOVERTIME.
DETERMINETHE RESPONSIVENESSOF DEMANDTO PRICE
CHANGES.WILLTHERE BE ATREMENDOUS, SLIGHT,OR
NEGLIGIBLE INCREASE OR DECREASE IN DEMAND IF PRICESARE
LOWEREDOR RAISED?
ESTABLISHEDTHE PRODUCT’S SELLING PRICE,TAKING INTO
CONSIDERATIONALL OFTHE ABOVE,THE MARKET SEGMENT
TARGETED,ANDTHE OPERATINGCOSTS & EXPENSES
(DETERMINED INTHETECHNICAL & FINANCIAL STUDIES).
LIKEWISE, ESTIMATETHE INCREASE FORESEEN IN SUBSEQUENT
YEARS.
26. 1. DEMAND MAY BE SIGNIFICANTLY AFFECTED
BY:
POPULATION GROWTH
INCOME CHANGES
TASTES
RURAL/URBAN DEVELOPMENTS
PRICE OF SUBSTITUTESAND COMPLIMENTARY
PRODUCTS,AND
MARKETINGTOOLS
▪ ADVERTISING
▪ PROMOTIONS
▪ CREDIT POLICIES, ETC.
27. 2. SUPPLY MAY BE INFLUENCED BY
THE DEV’T OF SUBSTITUTE PRODUCTS,
THE ENTRY OR EXIT OF FIRMS,
SOURCES AND COST OF PRODUCTION
FACTORS,
GOV’T POLICIES,
IMPROVEDTECHNOLOGY, ETC.
28. 3. PRICES MAY BE AFFECTED BY
PRODUCTION COSTS
PRICE CONTROLS
INFLATION, ETC
29. END PRODUCT OFTHE MARKET STUDY
“AFTER DEFINING MARKET AND PRICE
TARGETS,THE MARKETING PROGRAM
COMES IN ASTHE IMPLEMENTINGARM”.
30. 1. DETERMINETHETYPES OF MARKETING
PROGRAMS PREVALENT INTHE INDUSTRY
AND GAUGETHEIR RESPECTIVE
EFFECTIVENESS.
31. 2. DRAW UP A MARKETING PLANTHAT
IDENTIFIESTHETGT MARKET,THE SELLING
PRICE,THE PACKAGINGOFTHE PRODUCT,
THE DISTRIBUTION NETWORK,THE SALES
MGT MECHANISM, &THE ADVERTISING &
PROMOTIONS PROGRAM.
IMPORTANT COMPONENTS OF A MKTG PROGRAM:
▪ PRODUCT
▪ PRICE
▪ PLACE
▪ PROMOTIONS
32. 3. DESIGNTHE MARKETING ORGANIZATIONW/C
WILL IMPLEMENTTHE PLAN & DETERMINETHE
COST INVOLVED.
THE ORGANIZATIONWOULD AGAIN DEPEND GREATLY
ONTHETYPE OF PRODUCT BEING MARKETED. IN
GENERAL, A CONSUMER PRODUCT WOULD REQUIRE A
SIZEABLE ORGANIZATIONTHAT CONCENTRATES ON
DISTRIBUTION CHANNELS & PROMOTIONS.
NON-CONSUMER ITEMS WOULD PROBABLY REQUIRE
EITHER A DISTRIBUTION NETWORK OR A SMALL-SIZED
SALES FORCE. IN ANY CASE,THE MOST IDEAL
ORGANIZATION IS ONETHAT ALLOWS MAXIMUM
EFFICIENCY ATTHE LOWEST MANPOWER LEVEL
POSSIBLE.
33. THE SALES PROMOTION PLAN ANDTHE CHANNELS OF
DISTRIBUTION SHOULD BE APPROPRIATETOTHE PRODUCT AND
THE MARKET.
THE CONSUMER BUYING HABITS INTHE PARTICULAR FIELD
SHOULD 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 FOR
SALES ALLOWANCES CAN BE FORMULATED ONTHE BASIS OF
MARKETING CHANNELS SELECTED.
