2Conducting 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
3Steps 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)
4Describe the Industry and Its Outlook Description of industrySize – now and in 3-5 yearsNature of market segmentsIndustry marketing practicesMajor trendsImplications for your opportunity
5Analyze 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
6Create 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?
75. 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
8Develop Sales Projections Use as many formal or intuitive approaches as possibleCompare the resultsMake Go/No Go decision
9Develop 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