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Published February 2004 Feasibility study can protect your investment Great marketing ideas (new products, programs and projects) don’t always hit pay dirt. Conducting a feasibility study can help aim your shovel and significantly improve the odds of success. Typically, market feasibility studies are used to determine the best location for a business or venue. They also can be used to quantify market demand and response levels before making any major investment, e.g. new business, product extension, competitive positioning or promotion strategy. The basic function of a feasibility study is to help you make a “go” or “no” decision — or determine if a modification is needed. The two key questions your study should answer are:
Most studies focus on what I call the three C’s: your company, customers and competitors. In “feasibility speak” they are referred to as project, market analysis and competitive analysis, respectively.
After you’ve collected information in all three categories, analyze the data; opportunities and challenges will surface from this study and you’ll be better equipped to make a “go,” “no” or “modify” decision. You need to know if there is sufficient demand, and if your competitive advantage is strong enough to make the venture profitable. It is very common for an original idea to be somewhat askew, but a small modification could make a big difference. Evaluate every product, program and project as an investment; commensurately, it should be scrutinized as one. You’ll be more apt to strike gold if you study the landscape first. Andrew Ballard, President of Marketing Solutions Inc. in Edmonds, develops brand leadership strategies for businesses and teaches strategic marketing through Edmonds Community College. He can be reached at 425-672-7218 or by e-mail to andrew@mktg-solutions.net. |
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© The Daily Herald Co., Everett, WA |
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