Market Definition
A market is one that is formed by all potential customers who share a specific need or desire that might be willing to have the ability to make an exchange to satisfy that need or desire.
This section evaluates the business opportunity to the market and competitors
potential. The employer must demonstrate that the company has a clear idea of \u200b\u200bmarket conditions and the business concept is viable and profitable to justify investment in current and future conditions.
potential. The employer must demonstrate that the company has a clear idea of \u200b\u200bmarket conditions and the business concept is viable and profitable to justify investment in current and future conditions.
For the market can develop surveys, we can observe the behavior of consumers and the functioning of the markets. We can also do a literature review and other sources of information about the business you want to implement. Where an employer use their own estimates, will always add explanatory notes on the methodology used to calculate the most important data. If the explanation is very extensive and requires many references to the industry, attach as an appendix. It should provide a description of size and growth potential of the market for all customers to whom it is addressed. On the other hand it is possible the views of business experts and Better yet, entrepreneurs, research reports and newspapers or magazines.
not forget that any kind of information, qualitative (opinions) or quantitative (statistics), is valuable.
The purpose of market research is to prove to investors that current and potential customers are interested in our product or service.
Notes:
- The market survey allows us to know and evaluate to what extent the new value proposition is relevant to the customer.
- It is a fundamental tool to address the concerns of the employer.
- describes the size and growth potential of the target market that the business will
compete.
Product Definition
Define your activity is a fundamental step to develop the business plan. You generically to describe the product that you will make in case of case of a production company. If you provide services to comment what you're offering. In any case, should define your product portfolio and differentiate core services from those that offer up to complementary fashion.
Be as specific as possible. If you extract, transform, purchase, manufacture or marketing , say in each case.
If you take a third party to some or all of the production process, also say so. You can highlight the human and material resources used and the production process that uses or will use. If you sell or distribute its products telling who will sell.
to wholesalers, retailers, end consumers. In sum, be as specific as possible. This will help you design a project more robust and accurate.
to wholesalers, retailers, end consumers. In sum, be as specific as possible. This will help you design a project more robust and accurate.
Explain the reasons why your products or services are those elected in the market and how they differ from those of their comp etidores.
If our product or service, these items would be: how much the product costs competition? In which area or segment of society is more rooted? What is or has been its strategy of penetration? What are your main virtues? What are its shortcomings?
If our product or service, these items would be: how much the product costs competition? In which area or segment of society is more rooted? What is or has been its strategy of penetration? What are your main virtues? What are its shortcomings?
Consumer Market Characteristics (Consumer Profile)
Discriminate between the market for individual and institutional consumers. Market segments which are intended to reach and care should also be explained.
What is the profile of potential customer?
- How old are you?
- What is your gender?
- What activities?
- socioeconomic What belongs?
- What is your income?
- where is located the target audience?
- What is your lifestyle?
- What habits do you have?
- Is wholesaler, retailer, producer or end user?
- What is the size of the target market?
- What is the potential growth of this target market?
What is the behavior of my potential customers?
- Why buy certain product or hire certain service?
- When and under what circumstances would acquire the good or service?
- How do you make the purchase decision?
- Is it an impulse purchase?
What is the level of acceptance of the product or service?
- What
- needs are unmet?
- What should be the characteristics of the goods or services to meet the unmet needs of potential clients?
- "From a technical standpoint, it is possible to meet the needs of potential customers?
- What is the willingness to purchase the target audience?
- What would be willing to pay for the good or service?
- What is the frequency of purchase?
- What is the estimated demand for the next years?
- What is the distribution system more responsive and efficient?
Provider Market Characteristics
provider market consists of all companies and individuals who offer supplies, goods and services for our production, ie to produce the good or service we expect to produce.
Often, these markets are the most complicated in the sense of the number of suppliers we can find. In this case seeks a balance between quality and price. Always seek serious and reliable suppliers.
In other cases we have the other extreme, one or very few suppliers. In either situation described is necessary to explain the functioning of the supplier.
Often, these markets are the most complicated in the sense of the number of suppliers we can find. In this case seeks a balance between quality and price. Always seek serious and reliable suppliers.
In other cases we have the other extreme, one or very few suppliers. In either situation described is necessary to explain the functioning of the supplier.
Here it is important to know:
- What have ties or relationships with suppliers of inputs?
- What relationships you have with suppliers of financial resources?
- What are your payment terms?
- credit Do you provide short or medium term?
- What linkages you have with the suppliers of machinery and technology?
- What links has with the providers of human resources?
- What links has with the providers of administrative services and accounting?
Competitor Market Characteristics
The Competency is defined by those who produce the same products or services of my project. It also consists of those who produce substitute goods in consumption is, those who seek to fulfill the same needs but with a product or service other than .. The laundry soap can be replaced by the laundry detergent. It is this competitive market which analyzes and "crumbling" benchmarking, and this is absolutely inevitable process of analysis during the development of a good business plan. Before looking at potential competitors, it is essential that the employer is very clear who is competing and who is not. Competitors
play an important role when designing the project. Should therefore be considered to competitors and also consider future competitors. Possible alliances between competitors should also be analyzed. The following questions can be very useful as a guide:
play an important role when designing the project. Should therefore be considered to competitors and also consider future competitors. Possible alliances between competitors should also be analyzed. The following questions can be very useful as a guide:
- What are your five nearest direct competitors?
- What are your indirect competitors?
- What are the substitute goods or services?
- What products and services they sell?
- What have you learned the modus operandi of its competitors? What about advertising?
- What are the strengths and weaknesses of your competition? (Be specific)
- How do they differentiate their products and services business of providing other similar businesses?
- What are the prices of the competition and how they compare with ours?
- How do they compare our products with the competition?
- How important is their participation in the industry?
- What position are in the minds of our potential customers?
- What strategies Marketing used to reach your customers?
- What links they have with their suppliers?
- What are their levels of investment in technology?
- What are its human resources policies and how to attract talent?
- What is your production capacity?
- What are the sales channels and distribution networks of competitors?
- What is the overall cost structure of each of the competitors?
- What is the support and financial health of each of the competitors?
- What is the degree of association of companies in the sector?
- What is the level of performance of competitors and what guarantees compared to our products or services?
- What is the responsiveness of competitors, compared to customer requirements: time, flexibility, production capacity?
- Who is the market leader and what is the attribute that identifies it as such?
Remember that the best strategy to defeat "Enemy" has been, always know him well.
Dealer Market Characteristics
is necessary to know how the system of distribution of our product. How is this market. Whether to hire a company to market our products or
is preferable to do so only us.
distribution in many businesses is essential. Be careful study of the marketing systems that are used and are recommended for the type of good or service you think offer and sell.
is preferable to do so only us.
distribution in many businesses is essential. Be careful study of the marketing systems that are used and are recommended for the type of good or service you think offer and sell.
Foreign Market Characteristics (If any)
know the demands of foreign markets are the first step in thinking about export our products.
What characteristics, quality standards and other requirements must submit products export? The most important sources of information are business associations exporters, the business offices of embassies and chambers of commerce of other countries our country.
Then we know what the legal, commercial and financial export proceed. This information may meet her burden agencies or customs agencies.
know the demands of foreign markets are the first step in thinking about export our products.
What characteristics, quality standards and other requirements must submit products export? The most important sources of information are business associations exporters, the business offices of embassies and chambers of commerce of other countries our country.
Then we know what the legal, commercial and financial export proceed. This information may meet her burden agencies or customs agencies.
- Are there preferences? What are they and what impact they have on the business? Analyzing
- local markets, is it worthwhile to export or import?
- What are the total costs of international trade?
- At what price will have to sell in the countries of destination of the exported product and at what price it will sell the product imported into the country of destination?
- What competing products?
- How much production is available to export or import?
- What are the environmental conditions of the countries from where it matters and where it is exported?
- What are the trade regulations in the country of origin?
- What is the quality, availability and accessibility of logistics services nationally and internationally?
- What are the cultural barriers (language, religion, beliefs), quality standards (certifications) and health (quarantine in the case of live animals)?
The following questions summarize the basics of paragraph on the market within a business plan:
- What is / are your potential customers?
- Why do potential customers need our product?
- What are the size and growth potential of the target segments?
- What are the growth engines in the market segments?
- How do we get to our potential customers?
- What type of competitors faced by the entrepreneur? How intense is the competition?
- What share of the employer expects sales of various products or services and segments market?
- In what price range is going to compete?
- What is the image of quality that the business will have?
- Do the competitors similar products or services? Do you have the same value?
- Is it easy to imitate competitive business model the new company?
- How do competitors react to the new release to market?
- How to respond to that reaction?
- How can potential customers realize that they need elproducto you want to place on the market? ie How do that future customers do not become a necessity felt in explicit demand for our product?
- How to secure access to critical resources needed for the business model (expertise, human capital, etc.)?
- What forces in the technological, political, economic and sociocultural influence the design and implementation of business model?
- How big is the market where we intend to put our
product?
- not demonstrate a solid understanding of how your industry.
- apparent lack of companies that form its sector.
- Lack of knowledge of where your business takes in the whole sector. Skip
- growth trends and statistics relevant to your industry.
- Research.
- Research.
- Research.
Source: - Plan Business
tool to assess the viability of a business
Author: Karen Weinberger Villarán
- Business Plan Preparation and developed
by Guido Sanchez Yábar, commissioned by COFIDE
tool to assess the viability of a business
Author: Karen Weinberger Villarán
- Business Plan Preparation and developed
by Guido Sanchez Yábar, commissioned by COFIDE
0 comments:
Post a Comment