Basic Elements of An Investment Project: Market Study (II)
The product.
According to William J. Stanton, “a product is a set of tangible and intangible attributes, including inter alia packaging, color, price, quality and brand, along with services and reputation of the seller. A product may be a good, service, place, person or idea.”
It is important to identify what is and what our product or products which, noted the existence and characteristics of products to replace the developing project, according to the characteristics of the products of the project, indicate whether their use is conditioned on existence of another product on the market.The market.
According to Baca, “is the area that combines the forces of supply and demand for transactions in goods and services at prices determined.
By this study is intended to generate a general idea of the market in which to place the product, to define its scope with some precision. It is important and necessary to have an idea of the location and size of the company, seeking to be optimal in order to determine the specific area where the project operates.
The demand.
A very important factor is demand, as is the amount of goods or services requested by the client. This feature depends on the quantity of such goods or services produced.
The Offer.
No less important than the former, the ability to be taken to meet this demand the supply. When talking about capacity refers to resource management and competitive capacity.
The price.
In simple terms as described by Michael J. Etzel on the book Fundamentals of Marketing, “is the amount of money or other useful objects necessary to satisfy a need that is required to purchase a product.”
The price will vary with the play of supply and demand, or if it is regulated in accordance with the provisions of the agency that controls it. Take into account the following factors:
• The sales prices of the competition, the purchasing power of consumers, the expected reaction of the competition with the introduction of our product, that the product is new to the market that the product exists in the market but is new to the business, promotion, manufacturing, distribution channels used, product versatility, Auxiliary Services Product (Complimentary).
Set of actions taken by the company to bring a product to consumers, so should establish mechanisms and instruments to enable the realization of this objective.
In order to market a product requires the following functions:
Physical Functions .- Packing, size selection, make transportation, etc.
Auxiliary Functions .- Knowledge of pricing, quality control, standards of product development, etc.
The price is perhaps the most important element of business strategy in determining the profitability of the project since it will ultimately defining the level of income. It is also important to determine the conditions of sale, the cash recovery ratio, the credit period, the amount of fees, cash discounts, volume discounts, etc.
credit to: Mr. Jose Luis Hernández Cabrera
Source: www.gestiopolis.com/finanzas-contaduria/elementos-de-un-proyecto-de-inversion.htm
image source: www.utalkmarketing.com/pages/fsImageResize.aspx?fname=../UTMImages/2/Magnifying%20glass.jpg&w=352&h=249
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