Sunday, July 11, 2010

Marketing Feasibility

The purpose of the Marketing Feasibility Study is
to determine the suitability of this property for
profitable development, and to define optimal
products and amenities in accordance with
projected market demand, and to project sales
absorption and annual revenues from
development of this property.
The methodology entails examination of the
site's market potential followed by research on
the real estate consumer market and on
competitive real estate products. Research
findings are analyzed with respect to property
location, potential competition, and preliminary
development plans to define marketing feasibility
in terms of potential market share, marketing
constraints and opportunities and projected
absorption rate and pricing ranges. These
feasibility components provide the basis for
definitive recommendations on development
potential, development strategy and a cost-
effective marketing and sales strategy.

Market Feasibility

This can be based on a market assessment that
you may have already completed.
Industry description
Describe the size and scope of the industry,
market and/or market segment(s).
Estimate the future direction of the industry,
market and/or market segment(s).
Describe the nature of the industry, market and/
or market segment(s). Is it stable or going
through rapid change and restructuring?
Identify the life-cycle of the industry, market and/
or market segment(s). Is it emerging, growing,
mature, declining?
Industry competitiveness
Describe the industry concentration. Are there
just a few large producers or many small
Describe the major competitors? Will you
compete directly against them?
Analyze the barriers to entry of new competitors
into the market or industry. Can new competitive
enter easily?
Analyze the concentration and competitiveness of
input suppliers and product/service buyers.
Describe the price competitiveness of your
Market potential
Identify whether the product be sold into a
commodity market or a differentiated product/
service market.
Identify the demand and usage trends of the
market or market segment in which the product
or service will participate.
Examine the potential for emerging, niche or
segmented market opportunities.
Explore the opportunity and potential for a
branded product.
Assess market usage and your potential share of
the market or market segment.
Access to market outlets
Identify the potential buyers of the product/
service and the associated marketing costs.
Investigate the product/service distribution
system and the costs involved.
Sales projection
Estimate sales or usage.
Carefully identify and assess the accuracy of the
underlying assumptions in the sales projection.
Project sales under various assumptions (i.e.
selling prices, services provided, etc.).

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