DWARAKA DOSS GOVERDHAN DOSS VAISHNAV COLLEGE
DEPARTMENT OF HUMAN RESOURCE MANAGEMENT
ENTREPENUERSHIP DEVELOPMENT
Name: Navneet , Date: 19.01.2015
Faculty Name: Prof.Divya
Topic: MARKETING FEASIBILITY
Marketing feasibility
All the feasibility studies should look at how things work, if they will work, and identify the potential
problems . Feasibility studies are done on ideas, campaigns, product, processes and whole business process .
A marketing feasibility is an important exercise for all start-ups, small and medium sized enterprises to
determine if a sustainable market exists for a product or service. It involves analyzing existing market demand,
the competition and future market projections.
Things that include in the marketing feasibility are
Description of the industry
Current market analysis
Competition
Anticipate future market potential
Potential buyers and sources of revenue
Sales projections
Process
The following process may be adopted to assure the market opportunities of a product.
I. Identifying the Market Potential
It involves an estimation of both the current demand of the product and projection of future
market trends. The prospective entrepreneur will do well to identify
(a) specific end users,
(b)major market segments, and
(c) potential volume of purchases within each market segment.
Some statistical yardstick may be of quite help in accomplishing this work. To illustrate, a
potential manufacturer of helmets may find out the annual production of two wheelers,
percentage of helmet users and proportion of demand already met.
II. Estimating Cost-volume Relationship to ascertain how various price levels may affect
total sales volume
The price must reflect the value of the product. The entrepreneur may not adopt a uniform
price structure to take care of the sensitivity of the buyer to price changes. The cost-volume
analysis would also facilitate the determination of
appropriate economies of scales i.e. optimumsize of enterprise, which has lowest average per
Unit cost of production and distribution.
III. Sources of Market Information.
Relevant data for market analysis can be gathered from two main sources viz (a) primary sources such as
interviews, mailed questionnaire, survey etc and (b) secondary sources like
government agencies, trade unions, chambers of commerce etc. Whereas the former is costly, the
latter may not meet the requirements of the entrepreneur.
The following kind of data matrix may be quite helpful:
(a) Data relating to general economic trends as revealed by various indicators such as new
orders, house activity, inventories consumer spending.
(b) Market data relating to demand pattern, seasonal variation etc.
(c) Pricing data i.e. range of prices for same, complementary and substitute products; base
price; discount structure etc.
(d) Channels of distribution both wholesale and retail.
(e) Data relating to competitors.
To obtain this data, the entrepreneur may either conduct his own survey or approach a consultant.
IV. Market Testing
It is an important method of establishing the overall feasibility of a new venture, significant
market testing methods include: (a) displaying the product at trade fairs, (b) test marketing to
analyze the receptivity of the product, and (c) sample sales. A market test can provide following information.
(a) Likely sales volume and profitability.
(b) Sales volume at different price levels.
(c) Soundness of chosen market strategy.
(d) Unknown weakness that need attention.
The drawbacks of this technique are: delay in implementation, premature exposure to competitors and
expensiveness.
References
Entrepreneurship and small business management by Hans and Kuriloff and Arthur H.
New product decision an analytical approach by Pessemeir, Edgah A
