Republic of the Philippines

Polytechnic University of the Philippines

Sta. Mesa, Manila
COLLEGE OF BUSINESS ADMINISTRATION
Department of Management

Promotion and Feasibility Study

Written Report

BUSINESS FINANCE
Saturday / 1:30pm-4:30pm

BSBA-HRDM 3-2D
Buenagua, Louisse Belen
Bunagan, Janella Marie P.
Caban, Elaine Grace S.
Javier, Amiella Kristine C.
Tuazon, Andria S.

December 6, 2014
Table of Contents

 Promotion

A. Concept
1. Definition
2. Types of Promotion/ Promotion Mix
3. AIDA Concept
B. Stages of Promotion / Product Life Cycle

C. Roles of Promoters

 Feasibility Study –new enterprise model

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Promotion

Whether it is a private or public sector, organizations today are aware of the fact that it is very essential to
communicate the target audience effectively and efficiently. Advertisements, personal selling, exhibitions,
sales promotion etc. are various methods of promotion by which consumer come to know about the
various products in the market.
Promotion involves disseminating information about a product, product line, brand, or company. It is one
of the four key aspects of the marketing mix.
Promotion mix:
A specific combination of promotional methods used for one product or a family of products. Elements of
a promotion mix may include print or broadcast advertising, direct marketing, personal selling, point of
sale displays, and/or merchandising.
Promotion mix is also called marketing communication mix. Promotion is one of the elements of
marketing mix. The success of any product depends upon the appropriate promotion mix. The elements of
promotion mix are:
1. Advertising: - it is non personal presentation. For advertisement newspapers, magazines, hoardings,
banners, radio, television etc. are used.

2. Personal selling: - it means direct personal presentation by company’s sales force for sale.

3. Public relation: – it means building good public relation by favorable publicity.

4. Sales promotion: - it is done by way of displays, exhibitions, demonstrations or samples etc.

5. Direct marketing: - it means making direct communication with the consumer on one to one basis
through direct mail, fax etc.

The Product Life Cycle

A new product progresses through a sequence of stages from introduction to growth, maturity, and
decline. This sequence in known as the product life cycle and is associated with changes in the marketing
situation, thus impacting the marketing strategy and the marketing mix. The product life cycle has 4 very
clearly defined stages, each with its own characteristics that mean different things for business that are
trying to manage the life cycle of their particular products.

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Introduction Stage
After all research and development, consumer testing, and the marketing have been done it is time to
launch the product and begin its lifecycle. This stage of the cycle could be the most expensive for a
company launching a new product. The size of the market for the product is small, which means sales are
low, although they will be increasing. Sales may remain low because it takes time for the market to accept
the new product. At this stage of the life cycle, the company usually loses money on the product.
Growth Stage
The growth stage is typically characterized by a strong growth in sales and profits. This makes it possible
for businesses to invest more money in the promotional activity to maximize the potential of this growth
stage. In the growth stage of the product life cycle, the market has accepted the product and sales begin to
increase. The company may want to make improvements to the product to stay competitive. At this point,
there are still relatively few competitors.
Maturity Stage
During the maturity stage, the product is established and the aim for the manufacturer is now to maintain
the market share they have built up. This is probably the most competitive time for most products and
businesses need to invest wisely in any marketing they undertake. They also need to consider any product
modifications or improvements to the production process which might give them a competitive
advantage.
Decline Stage
Eventually, the market for a product will start to shrink, and this is what’s known as the decline stage.
This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the
product have already purchased it), or because the consumers are switching to a different type of product.
While this decline may be inevitable, it may still be possible for companies to make some profit by
switching to less-expensive production methods and cheaper markets.

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AIDA model for promotion mix:

Attention—-interest——desire——–action
AIDA model works in a way that firstly the promotion of the product should be done in such a way that it
should grab the attention of the consumer then it must create interest in the mind of the consumer, by
creating a sense of likingness among the consumer. Then it must create desire among the consumer to buy
the product and ultimately consumer makes an action and buys the product.
Attention
In our media-filled world, you need to be quick and direct to grab people's attention. Use powerful words,
or a picture that will catch the reader's eye and make them stop and read what you have to say next.
Interest
Gaining the reader's interest is a deeper process than grabbing their attention. They will give you a little
more time to do it, but you must stay focused on their needs. This means helping them to pick out the
messages that are relevant to them quickly. So use bullets and subheadings, and break up the text to make
your points stand out.
Desire
The Interest and Desire parts of AIDA go hand-in-hand: As you're building the reader's interest, you also
need to help them understand how what you're offering can help them in a real way. The main way of
doing this is by appealing to their personal needs and wants.
Action
Finally, be very clear about what action you want your readers to take. Ofcourse, you would like your
consumers to purchase the product or sevice.

Roles of Promoters
A corporate promoter is a person engaged in a fiduciary relationship with a corporation or company so
that they can legally perform their duties in the name of the company. Also known as a fiduciary officer
or a company promoter, the responsibilities for this position can vary slightly by company profession. The
promoter is required by law to enter into a state of mutual trust with his employer so that any profits or
losses are reported, which allows the promoter to do his job without allowing him to conveniently steal or

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 profit excessively from the company.

Job Description

 A corporate promoter is expected to solicit all funds necessary for the company as well as handle
relationships with any co-promoters, stockholders or board members the company might have hired. This
allows for the promoter to have almost full control and knowledge of the economic and financial situation
of the company to make better company decisions.

Transactions

 Another role of the promoter is that she is usually held responsible for handling any transactions or stock
sales/purchases that a company might have, including the actual handling of the deal and the people
involved. The promoter will arrange the transaction, the deal and any business meeting with shareholders
or board members that might be necessary before a transaction can be commenced.

Solicitation

 The promoter is responsible for the solicitation and allocation of funds to be used by the company. Should
the company require a new board member, the promoter is responsible for locating, interviewing and
ensuring the new board member's suitability to the company.

Decisions

 Using information about stockholders, the current market and solicitors, a promoter is expected to make
decisions on behalf of the company. Depending on the company, this can apply to monetary decisions
regarding the purchases of stocks, sales management or even employees.

Limitations

 By law a promoter is required to report any and all money transactions to his superior so that the company
or board can be certain that the promoter is not making a profit from the company. The promoter is also
required to report any personal losses or gains that might result from a decision made for the company.
Any disclosures about personal interest or profit in a decision may result in an examination by a board of
directors, the company or examination of financial status and upholding of fiduciary duties.

Primary Responsibilities

1. Demonstrate product to customers on a TV show, at a store, during a festival, or another venue.

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 2. Market product to clients or companies who have displayed an need for the product.
3. Show how product is best-used.
4. Show how product should be cleaned and properly stored.
5. Use graphics and slideshows during presentation.
6. Answer questions about product.
7. Discuss pricing tiers with customers.
8. Give product samples.
9. Cook, slice, and serve product.
10. Visit customer's home to demonstrate product.
11. Set up booths, including pictures and samples.
12. Conduct guided tours.
13. Train other demonstrators.
14. Tell customers why product is better than competitors.
15. Suggest specific product purchases.
16. Visit trade shows to demonstrate product.
17. Collect fees or donations.
18. Contact businesses and arrange for demonstrations or exhibitions.
19. Transport and assemble materials.
20. Recommend product improvements to maker.
21. Improvise product demonstrations depending on audience size and attention span.
22. Produce coupons and informational brochures.
23. Wear proper customers or sign boards.
24. Walk around store offering samples to customers.
25. Clean up area after demonstration.
26. Take orders from companies for products.

Feasibility Study

Feasibility study is defined as a controlled process identifying problems and opportunities,

determining objectives, describing situations, defining successful outcomes and assessing the range of
costs and benefits associated with several alternatives for solving a problem. The Business Feasibility
Study is used to support the decision making process based on a cost benefit analysis of the actual
business or project viability. It is a preliminary study undertaken before the real work of a project starts to
ascertain the likelihood of the project’s ascertain. It is an analysis of all possible solutions to a problem
and a recommendation on the beast solution to use. It involves evaluating how the solution will fit into the
organization. Feasibility studies can be used in many ways but primarily focus on proposed business
ventures. Anybody with a business idea should conduct a feasibility study to determine the viability of
their idea before proceeding with the development of a business.

Feasibility study is an analysis of the variability of an idea with an emphasis on identifying

potential problems and attempts to answer the one main idea “Will the idea work and should you proceed
with it?” It focuses on helping answer the essential question “should we proceed to proposal project
idea?” All activities of the study are directed toward helping answer this question.

A feasibility study is valuable for:

• Starting a new business
• Expansion of an existing business
• Adding an enterprise to an existing business

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 • Purchasing an existing business

A feasible business will:

• Generate adequate cash flow and profits,
• Withstand risks,
• Remain viable in the long-term
• Meet the goals of the founders

Reasons to do the Feasibility Study

 Generate adequate cash-flow and profits
 Withstand the risks it will encounter
 Remain viable in the long term
 Meet the goals of the founders
 Gives focus to the project.
 Narrows the business alternatives.
 Identifies new opportunities.
 Identifies reasons not to proceed.
 Provides valuable information for “go/no go” decision.
 Increases probability of business success by identifying weaknesses early.
 Provides documentation that the idea was thoroughly investigated.
 Helps attract funding from lenders, grant providers, etc.
 Helps attract equity investment

Five common factors (TELOS)

1. Technology and system feasibility

The assessment is based on an outline design of system requirements in terms of Input, Processes,
Output, Fields, Programs, and Procedures. This can be quantified in terms of volumes of data, trends,
frequency of updating, etc. in order to estimate whether the new system will perform adequately or
not this means that feasibility is the study of the based in outline.

2. Economic feasibility
Economic analysis is the most frequently used method for evaluating the effectiveness of a new
system. More commonly known as cost/benefit analysis, the procedure is to determine the benefits
and savings that are expected from a candidate system and compare them with costs. If benefits
outweigh costs, then the decision is made to design and implement the system. An entrepreneur must
accurately weigh the cost versus benefits before taking an action.

3. Legal feasibility
Determines whether the proposed system conflicts with legal requirements, e.g. a data processing
system must comply with the local Data Protection Acts.

4. Operational feasibility
Is a measure of how well a proposed system solves the problems, and takes advantages of the
opportunities identified during scope definition and how it satisfies the requirements identified in the
requirements analysis phase of system development.

5. Schedule feasibility
A project will fail if it takes too long to be completed before it is useful. Typically this means
estimating how long the system will take to develop, and if it can be completed in a given time period

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 using some methods like payback period. Schedule feasibility is a measure of how reasonable the
project timetable is. Given our technical expertise, are the project deadlines reasonable? Some
projects are initiated with specific deadlines. You need to determine whether the deadlines are
mandatory or desirable.

Other feasibility factors

1. Market and real estate feasibility

Market Feasibility Study typically involves testing geographic locations for a real estate
development project, and usually involves parcels of real estate land. Developers often conduct
market studies to determine the best location within a jurisdiction, and to test alternative land uses
for a given parcels. Jurisdictions often require developers to complete feasibility studies before they
will approve a permit application for retail, commercial, industrial, manufacturing, housing, office or
mixed-use project. Market Feasibility takes into account the importance of the business in the
selected area.

2. Resource feasibility
This involves questions such as how much time is available to build the new system, when it can be
built, whether it interferes with normal business operations, type and amount of resources required,
dependencies, etc. Contingency and mitigation plans should also be stated here.

3. Cultural feasibility
In this stage, the project's alternatives are evaluated for their impact on the local and general culture.
For example, environmental factors need to be considered and these factors are to be well known.
Further an enterprise's own culture can clash with the results of the project.

Pre-Feasibility Study
May help sort our alternatives and determine if a full-blown feasibility study is warranted. A pre-
feasibility study may be conducted first to help sort out relevant scenarios. Before preceding with a full
blown feasibility study, you may want to do some pre-feasibility analysis of your own. If you find out
early-on that proposed business idea is not feasible it will save your time and money. If the findings
lead you to proceed with a feasibility study, your work may have resolved some basic issues. A
consultant may help you with the pre-feasibility study, but you should be involved. This is an
opportunity for you to understand the issue of the business development.

Market Assessment
A market assessment may be conducted first to identify market opportunities in a market or a market
segment. If no opportunities exist, there may be no reason to proceed further with a feasibility study. If
opportunities are found, the market assessment can give focus and direction to the construction of the
business scenarios to investigate in the feasibility study. A market assessment will provide much of the
information for the marketing feasibility section of the feasibility study.

Study Results
The conclusions of the feasibility study should outline in depth the various scenarios examined and the
implications, strengths and weaknesses of each. The project leaders need to study the feasibility study
and challenge its underlying assumptions. Don’t expect alternative to “jump-off the page” as being the
best scenario. Feasibility studies does not become suddenly positive or negative. The study will help
you assess the trade-off between the risks and reward of moving forward with the business project.
Remember, it is not the purpose of the feasibility study nor the role of the consultant to decide whether

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 or not to proceed with the business idea. It is the role of the project leaders to make this decision, using
information from the feasibility study and inputs of the consultants.

Go/No Go Decision
The feasibility study will be a major information source in making this critical decision. It is the point
of no turn. Once you have definitely decided to pursue a business scenario, there is usually no turning
back. The feasibility study will be a major information source in making this decision. This indicates
the importance of a properly developed feasibility study.

Before you begin writing your feasibility study…

 Identify how, where, and to whom you intend to sell a service or product. Feasibility studies
addressing things like where and how the business will operate provides in-depth details about the
business to determine if and how it can succeed. It also serves as a valuable tool for developing a
winning business plan.
 Assess your competition
 Figure out how much money you need to start your business and keep it running until it is
established.

Feasibility Study Outline

1) Description of the Project

• Identification and exploration of business scenarios.
• Define the project and alternative scenarios.
• Relationship to the surrounding geographical area.

2) Market Feasibility
• Industry description.
• Industry competitiveness.
• Market potential
• Access to market outlets.
• Sales projection

3) Technical Feasibility
• Determine facility needs.
• Suitability of production technology.
• Availability and suitable of site.
• Raw materials.
• Other inputs.

4) Financial/Economic Feasibility
• Estimate the total capital requirements.
• Estimate equity and credit needs.
• Budget expected costs and returns.

5) Organizational/Managerial Feasibility
Business structure
 Identify the proposed legal structure of the business.
 Outline the staffing and governance structure of the business along with lines of authority and
decision making structure.
 Identify any potential joint venture partners, alliances or other important stakeholders.

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  Identify the availability of skilled and experienced business managers.
 Identify the availability of consultants and service providers with the skills needed to realize the
project, including legal, accounting, industry experts, etc.
Business founders
 Character matters - are the people involved of outstanding character?
 Do the founders have the “fire in the belly” required to take the project to completion?
 Do the founders have the skills and ability to complete the project?
 What key individuals will lead the project?
 Is there a reward system for the founders? Is it based on business performance?
 Have the founders organized other successful businesses?

6.) Study Results

• Identify and describe various business scenarios.
• Compare and contrast scenarios.
• Outline criteria for decision making.

Feasibility studies vs. business plans

 A feasibility study is designed to discover if a business is "feasible" or not. It will answer
questions such as "will your idea work?" It is an essential first step before spending money and
time on more detailed plans. The information gathered is not wasted as it can be incorporated into
the Business Plan. The feasibility study outlines and analyses several alternatives or methods of
achieving business success.
 On the other hand a Business Plan is a more detailed and in depth document that incorporates the
information gained from a feasibility study plus specific timelines, detailed budgets with forecasts
and a detailed financial strategy. The business plan provides a planning function. It also outlines
the actions needed to take the proposal from “idea” to “reality”.

Feasibility before business plan

 Before you begin writing your business plan you need to identify how, where, and to whom you
intend to sell a service or product. You also need to assess your competition and figure out how
much money you need to start your business and keep it running until it is established.

Feasibility is a tool for a business plan

 Feasibility studies address things like where and how the business will operate. They provide in-
depth details about the business to determine if and how it can succeed, and serve as a valuable
tool for developing a winning business plan. The person or business conducting the feasibility
study may work with the group to identify the best alternative for their situation. This becomes a
basis for business plan.

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BIBLIOGRAPHY
 Mc Carthy, Jerome, and William Perreault.Basic Marketing: A Global Managerial Approach.

15th ed. Mc Graw Hill International, 2005. Print.

 http://www.quickmba.com/marketing/product/lifecycle/

 http://productlifecyclestages.com/

 http://www.mindtools.com/pages/article/AIDA.htm

 http://www.ehow.com/info_8764704_roles-promoter.html

 http://www.americasjobexchange.com/product-promoter-job-description

 http://www.slideshare.net/RudyFlores1/1-what-is-a-feasibility-study

 http://www2.dupont.com/Superfibers_Contest/cs_CZ/assets/downloads/Dokumenty/1%20How%

20to%20write%20a%20feasibility%20study_Martina.pdf

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