Industries whether small or large function in an environment of controllable and uncontrollable variables. A small enterprise has to constantly interact with the market in which it has to operate and is also exposed to the risk of other environmental factors. Its marketing efforts must stay fine-tuned to suit the requirements of the market in general and the needs and wants of the customers in particular. They have to develop an exceptional market orientation in light of
Need for Market Assessment:
The marketing orientation outlook will drive an entrepreneur to seek answers to many questions relating to #market segments, #marketing inputs, #product quality, #price structure, #technology of manufacture etc., before setting up the venture. This exercise will facilitate him/her to move ahead with greater degree of confidence and tackle the problems that may arise during the later stages, in a professional manner.
Analysis of #market demand, the competitive situation and trade practices are vital for a sound market assessment. The market is composed of a large variety of customers who differ in their likes and dislikes, options, preferences, education, employment, income and status. The location of customers also differ, some may be located nearer and others in distant places.
Factors that help a firm to decide the target segment which is of special interest:
The identification of the customer groups aids in making an estimate of the market demand for the product chosen.
Look for Competitive Situation:
Once the market demand has been estimated, one has to look for the competitive situation prevailing in the market as a firm cannot just pursue its own policies without considering what the competitors are up to. The nature and extent of competition will place several constraints on the marketing policies of a firm and a thorough analysis of the same will help in pricing and also in identifying the gaps and opportunities that will be available for exploitation.
An intelligent and experienced entrepreneur would weigh an opportunity as follows: