question

what is chapter 2 in FS

answer

Marketing aspect

question

is considered as the lifeblood of all feasibility studies.

answer

The Marketing Aspect

question

The most basic question in the conceptualization of any business endeavor is

answer

whether or not people will patronize the product.

question

The information derived from its aspect will substantially affect all the other subsequent aspects of the study.

answer

The information derived from its aspect will substantially affect all the other subsequent aspects of the study.

question

This aspect contains the following

answer

Industry Analysis Market Analysis Marketing Program Presentation, Analysis and Interpretation of Data

question

which includes opportunity and threat analysis and environmental analysis (demographic, economic, natural, technological and political).

answer

Industry Analysis

question

which measures the demand and supply quantum.

answer

Market Analysis

question

which discusses the target market and the plan of the proponents with regard to the marketing mix - Product, Price, Place and Promotion

answer

Marketing Program

question

which processes the results of the survey conducted by the proponents.

answer

Presentation, Analysis and Interpretation of Data

question

Objectives of the Marketing Aspect

answer

The Marketing Aspect aims to: -Identify the opportunities and threats of the business. -Identify the factors in the external environment which are expected to affect the business operations. -Describe the demand and supply condition of the current market. -Measure the demand and supply gap. -Identify the proposed target market. -Discuss the proposed marketing program with regard to the product, price, place and promotion. -Present, analyze and interpret the results of the marketing survey conducted by the business proponents.

question

This is the first sidehead of the chapter. It discusses the various factors that are expected to affect the operations of the proposed business.

answer

Industry Analysis

question

This is the first sub-head under Industry Analysis. This part is written in enumeration format, with a brief explanation after each item enumerated.

answer

Opportunity and Threat Analysis

question

is an area of the differential advantage. This is a characteristic or factor that cannot be controlled by the company, which is expected to affect the company operations in a positive manner.

answer

OPPORTUNITY

question

is a challenge posed by an unfavorable trend or disturbance in the external environment. This is a characteristic or factor that cannot be controlled by the company, which is expected to affect company operations negatively.

answer

THREAT

question

This is the second subhead under Industry Analysis. This part is written in paragraph form. There are 5 forces in the external environment but the proponents need not discuss all. Only those forces that are expected to affect business operations substantially must be included in this part.

answer

Environmental Analysis-

question

includes factors like geographical distribution, density, population, age distribution, birth and death rates, racial, ethnic and religious structures. The data may be taken from various databanks or through the Internet.

answer

Demographic Environment

question

includes inflation, income, savings, and debt patterns and consumer expenditure patterns.

answer

Economic Environment

question

pertains to abundance or shortages of raw materials, levels of pollution, environmental awareness and natural resource management.

answer

Natural Environment

question

discusses the accelerating rate of technological change, unlimited innovation opportunities, new discoveries, research and development.

answer

Technological Environment

question

includes legislations, government control, politics and growth of public interest groups.

answer

Political Environment

question

This is the second sidehead of the Chapter. It identifies whether or not there exists a potential market for the proposed product.

answer

Market Analysis

question

This is the first sub-head of Market Analysis. It enumerates the factors that affect demand for the proposed product.

answer

Demand Conditions

question

This is the second sub-head of Market Analysis. It enumerates the factors that affect supply of the proposed products.

answer

Supply Conditions

question

This part may also enumerate the stores or establishments currently competing within the industry.

answer

Supply Conditions

question

This is the third sub-head of Market Analysis. It measures the gap between demand and supply and identifies whether there exists a potential market for the proposed business

answer

Measurement of Demand and Supply Quantum

question

STEPS IN THE MEASUREMENT OF DEMAND AND SUPPLY QUANTUM A. HOW TO COMPUTE FOR ANNUAL DEMAND

answer

Take the population (individuals or households) of the target area where the proponents plan to sell the proposed product. The proponents must be ready to present evidence of population.

question

STEPS IN THE MEASUREMENT OF DEMAND AND SUPPLY QUANTUM A. HOW TO COMPUTE FOR ANNUAL DEMAND

answer

Deduct from the population a portion that is not qualified as potential market due to age, sex, income or other exclusion factors. The proponents must be ready with documents proving that said number or percentage is really disqualified. The difference between (1) and (2) is called the Net Potential Market.

question

STEPS IN THE MEASUREMENT OF DEMAND AND SUPPLY QUANTUM A. HOW TO COMPUTE FOR ANNUAL DEMAND

answer

Identify the monthly income of the potential market and multiply the income with the portion of income spent on the proposed product. Another way of doing this is to identify that actual amount spent on the product per unit. The data to be used shall come from the survey. If the proposed product does not exist in the market, the proponents may choose a similar product line or category.

question

STEPS IN THE MEASUREMENT OF DEMAND AND SUPPLY QUANTUM A. HOW TO COMPUTE FOR ANNUAL DEMAND

answer

Multiply the result of (3) with the Net Potential Market computed in (2). The result is called Monthly Spending.

question

STEPS IN THE MEASUREMENT OF DEMAND AND SUPPLY QUANTUM A. HOW TO COMPUTE FOR ANNUAL DEMAND

answer

Multiply the result in (4) with the annual buying frequency (which refers to the number of times or the quantity of products bought in a year). The result is called Annual Spending.

question

STEPS IN THE MEASUREMENT OF DEMAND AND SUPPLY QUANTUM A. HOW TO COMPUTE FOR ANNUAL DEMAND

answer

Divide the result in (5) by the average price of the product. The result is called the Annual Demand.

question

HOW TO COMPUTE FOR THE ANNUAL SUPPLY

answer

1. Take the annual sales of a direct business competitor. If the proposed business is the first of its kind, take the sales of a similar and comparable business. 2. Multiply the annual sales in (1) by the number of competitors or suppliers in the area and vicinity of the proposed business location. The result is called Annual Supply in Pesos. 3. Divide the Annual Supply in Pesos by the average price of the product based on survey or interview with current businesses. The quotient is called Annual Supply in Units.

question

This is the third sidehead of the Chapter. This contains all the marketing plans based highly on the results of the marketing survey that they conducted. The 4P's are discussed in this part.

answer

III.The Marketing Program

question

This is the first sub-head under The Marketing Program. It identifies (in statement form) the proposed target market for the product.

answer

The Proposed Target Market

question

This is the second sub-head. It discusses the product strategies, including but not limited to: appearance, design, colors, shapes, sizes, unique characteristics, benefits, etc. You must include here pictures of the proposed product.

answer

Product Strategy

question

This is the third sub-head. It identifies the selling price of the proposed product and explains the pricing strategy and the process used in arriving at the proposed selling price.

answer

Price Strategy

question

A detailed computation of the price must be included here. It is important that before you set price, the proponents must know exactly its manufacturing cost.

answer

Price Strategy

question

This is the fourth sub-head. It discusses the place strategies, including but not limited to: sales location, mode of distribution, distribution channels, delivery, warehousing, transportation, etc. A diagram showing the distribution channel must be provided in this section.

answer

Place Strategy

question

This is the fifth sub-head. It explains in detail the plans of the proponents on how to market and promote the product.

answer

Promotion Strategy

question

It includes plans about advertising, sales promotion, publicity, and public relations and includes sample brochures, storyboard, leaflets, etc. Sample leaflets or brochures must be included in this part.

answer

Promotion Strategy

question

This is the last sidehead of the Marketing Aspect. It presents, analyzes and interprets the data gathered from the marketing survey conducted.

answer

Presentation, Analysis and Interpretation of Data

question

is prepared for every item contained in the questionnaire, starting with personal information up to the last question.

answer

TABLES

question

The tables are frequency distribution tables having 3 columns, namely

answer

: Choices, Frequency Distribution and Percentage Distribution.

question

follow after each table. They are graphical presentations of data. The labeling follows the one used for tables except that they are not called tables, but FIGURES

answer

PIE CHARTS

question

Table labels are written on top of the table. Figure labels are written below the figures.

answer

Table labels are written on top of the table. Figure labels are written below the figures.

question

Merely restates the data in words

answer

ANALYSIS

question

Discusses what the number mean

answer

INTERPRETATION

question