Market Appraisal

Entrepreneurial Idea

1. Market Appraisal
•Whether demand projections made for the output of
the project is reasonable?
–Based on available survey
–Based on industry association projection
–Independent market survey
•Adequacy of marketing infrastructure
–Distribution network
–Transport facilities
–Warehousing and stock level
•Competency of marketing personnel

2. Market Appraisal
•Market Survey
–Defining the target population
–Selecting the sampling scheme and sample size
–Developing Questionnaire
–Recruiting and training the field investigators
–Obtaining information as per the questionnaire from
respondents
–Scrutinizing the gathered information
–Analyzing and interpreting the information

3. Market Appraisal
•Characteristics of the market
–Demand of the product in past and present
–Price
–Falling demand
–Analysis
–Distribution Methods and sales promotion
–Consumers
–Supply and competition
–Government policy

4. Market Appraisal
•Demand Forecasting
–Qualitative Method
•Executive opinion method- A group of managers plans for
expected future sales and estimates the sales that need to be
achieved.
•Delphi Method- A panel of experts make there opinion through
a questionnaire for a given situation. These responses are
summarized by a central coordinator and again sent back to
panel for refinement.
–Time Series Method
•Trend Projection Method- Past consumption trends are used for
future demand projection.
•Moving Average Method- Sales forecast for next period is done
on the basis of average sales of the past several periods.