How to study the marketing feasibility of your project
The marketing feasibility study (market study) is considered part of the detailed feasibility study for any project, during which the extent of its success or failure in providing its services or products to the consumer is studied, and it shows the extent of the project’s ability to continue and continue to operate, as it determines the degree of competition, pricing policies, and other factors. Sensitive matters for any project presents the slogan of continuity and success.
Conducting any marketing feasibility study requires preparing a detailed framework based on studying the relationship between the product and the market, including:
1- The demand for the product or service in terms of time, means studying the demand for the commodity throughout the year. or seasonal demand for the commodity. Or the demand for the commodity in times of events and holidays only.
2- The demand for the product or service in terms of location. It requires a study of the targeted geographical area for marketing the proposed product or service, and indicates whether the targeted geographical area is: local, export abroad, or open.
3- Required marketing information: market study – product and target market – demand level – consumers – competition and supply – distribution and commercial practices – marketing plan:
Marketing feasibility study
The market study is the cornerstone and starting point for determining the possibility of success of the project or not, regardless of the type of this project, commercial, industrial or service project, and it also shows the extent of consumers’ need for that service or product. Therefore, the investor must study the market well so that he can know the amount of supply and demand, the marketing policies followed, the behavior of consumers, and to know the appropriate price for the service or product.
The proposed market study includes several main elements that can be identified through the following:
product and target market
Product specifications, uses, target segment and competing alternative products.
The current rate of demand for the product, the life cycle of the product, the rate of change in demand, seasonal changes that affect demand, information related to prices, elasticity of demand and the extent to which the change in the price of the product affects the volume of demand.
The volume of consumption of the product, the motives for purchasing the good or service, who is making the purchase, the consumption pattern
Competition and presentation
The degree and nature of competition, who are the competitors, are there new competitors that can enter the market? Are there import stats? What is the comparison between the local and imported product?
distribution and business practices
What are the distribution channels? Are there brokers or a line of business for them? What are the current business practices? What are the possible means of advertising and promotion? What is the cost of promotional and advertising means.
They are the processes through which consumers are informed about the product or service by defining distribution channels, advertising means, and setting the price, which leads to drawing a positive image of the product or service in the mind of the consumer, then making marketing strategies to arouse interest in the product and motivate consumers to buy, and then achieve the goals of the establishment. By achieving targeted annual sales and revenue.
Finally, while the marketing feasibility study is considered the basis of all feasibility studies, the study of the demand for the product to be produced is one of the most important stages of the marketing study, as the accuracy of forecasting future demand greatly affects the success of the project. Without ignoring the marketing activities and problems associated with the project, inaccuracy or inadequacy in conducting the marketing study has serious consequences for the project.