2 Conducting a Feasibility Study: Part 1 Start a new businessDevelop the concept for your ventureDevelop a sales forecastFlesh out your marketing planDevelop a detailed marketing program for each channel you plan to useMarket throughtraditional distributionchannelsMarket directto the consumerMarket to thegovernmentMarket inforeign marketsspecialty channelsEvaluate technical feasibilityHow will product be producedDetermine fixed production costsEstablish a price structure for yourproduct or serviceDetermine variable production costsDevelop a preliminary marketing planResearch customersand marketsTest your productor serviceAssess market size,segments and trendsEvaluate thecompetition
3 Steps for Assessing Market Opportunities Identify the Environmental Forces Impacting Your BusinessEconomic conditions and trendsLegal and regulatory situation and trendsTechnological positioning and trends (state of the art; related R&D)Relevant social changesNatural environment (shortages? vulnerabilities)
4 Describe the Industry and Its Outlook Description of industrySize – now and in 3-5 yearsNature of market segmentsIndustry marketing practicesMajor trendsImplications for your opportunity
5 Analyze Your Key Competitors Who are they?Product descriptionMarket positioning (relative strengths and weaknesses, as seen by customers)Marketing practices – channels, pricing, promotion, service, etc.)Estimated market shareReactions to competitionImplications for your opportunity
6 Create a Target Market Profile Levels: generic needs, product type, specific brandsEnd-user focus; also channel membersProfiles of target customersWho are your potential customers?What are they like as consumers/ business peopleHow do they decide to buy/not buyImportance of different product attributesWhat outside influences affect their buying decisionsWhat are the implications for your opportunity?
7 5. Market Test Your Idea Develop a prototype Obtain Opinions from Prospective BuyersDirect comparison with competitors productsOne store testExhibit at trade showsConduct a focus group or customer survey
8 Develop Sales Projections Use as many formal or intuitive approaches as possibleCompare the resultsMake Go/No Go decision
9 Develop Your Preliminary Marketing Plan Detail the marketing strategy you plan to useDescribe your marketing plan including your sales strategy, advertising and promotion plans, pricing policy, and channels of distributionDevelop a marketing plan for each distribution channel you plan to use