Conducting the Market Analysis

 

It covers issues that are specific to analyzing  the feasibility of a new market.

 

Market feasibility refers to the potential customer base and demand for a certain market products and the level and types of competition a new market will face.

 

Potential Customer Base

 

 

The first task for the market-analysis committee is collecting demographic data.

 

The committee should develop a profile of the local market that considers the age, gender, ethnicity, languages used, income, and education levels of potential customers.

 

This type of  demographic information can be found at www.census.gov

 

or from sources such as the local chamber of commerce.

 

Important information about potential customers for a market could include gender, age, household income, education level, neighborhood, ethnicity,

 

This data is useful for estimating the number of potential customers.

 

Analyzing the Target Clientele

 

Who are the market’s potential customers?

 

Market analysis generally includes determining who potential customers are and how many the markets will serve.

 

If the population is large enough and there is considerable interest in local produce and value-added goods, then the market and other businesses in the area will likely thrive.

 

However, it still is necessary to profile prospective customers to ensure

 

that the market meets their needs.

 

The market’s target audience affects many aspects of the market, including the product mix, advertising, and promotional activities.

 

Get to know who your target customers are and their preferences.

 

Assessing Market Feasibility

 

Unearth the following kinds of information when assessing a market’s feasibility:

 

Is the community interested? How much community support can be generated or already exists?

 

Is there another market nearby? What is the level of competition? Does the competition have the potential to impede success?

 

Can the market generate sufficient revenue to make it worthwhile for management?

 

The details of these issues will need to be explored further as the market research team develops a solid market feasibility study.

 

Conclusion

 

In addition to competing various markets in the area, there are other types of businesses that present competitive forces.

 

The committee can conduct most of the market research and analysis with committee members contributing according to their areas of expertise.