1. Assess the Market for Your Business Idea

2. Conducting a Feasibility Study: Part 1
Start a new business
Develop the concept for your venture
Develop a sales forecast
Flesh out your marketing plan
Develop a detailed marketing program for each channel you plan to use
Market through
traditional distribution
channels
Market direct
to the consumer
Market to the
government
Market in
foreign markets
specialty channels
Evaluate technical feasibility
How will product be produced
Determine fixed production costs
Establish a price structure for your
product or service
Determine variable production costs
Develop a preliminary marketing plan
Research customers
and markets
Test your product
or service
Assess market size,
segments and trends
Evaluate the
competition

3. Steps for Assessing Market Opportunities
Identify the Environmental Forces Impacting Your Business
Economic conditions and trends
Legal and regulatory situation and trends
Technological positioning and trends (state of the art; related R&D)
Relevant social changes
Natural environment (shortages? vulnerabilities)

4. Describe the Industry and Its Outlook
Description of industry
Size – now and in 3-5 years
Nature of market segments
Industry marketing practices
Major trends
Implications for your opportunity

5. Analyze Your Key Competitors
Who are they?
Product description
Market positioning (relative strengths and weaknesses, as seen by customers)
Marketing practices – channels, pricing, promotion, service, etc.)
Estimated market share
Reactions to competition
Implications for your opportunity

6. Create a Target Market Profile
Levels: generic needs, product type, specific brands
End-user focus; also channel members
Profiles of target customers
Who are your potential customers?
What are they like as consumers/ business people
How do they decide to buy/not buy
Importance of different product attributes
What outside influences affect their buying decisions
What are the implications for your opportunity?

7. 5. Market Test Your Idea Develop a prototype
Obtain Opinions from Prospective Buyers
Direct comparison with competitors products
One store test
Exhibit at trade shows
Conduct a focus group or customer survey

8. Develop Sales Projections
Use as many formal or intuitive approaches as possible
Compare the results
Make Go/No Go decision

9. Develop Your Preliminary Marketing Plan
Detail the marketing strategy you plan to use
Describe your marketing plan including your sales strategy, advertising and promotion plans, pricing policy, and channels of distribution
Develop a marketing plan for each distribution channel you plan to use