FEASIBILITY STUDY

A feasibility study is a comprehensive evaluation of a proposed project that evaluates all

factors critical to its success in order to assess its likelihood of success. Business success can be
defined primarily in terms of ROI (Return of Investment), which is the amount of profits that will
be generated by the project.

A feasibility study evaluates a project's or system's practicality. As part of a feasibility

study, the objective and rational analysis of a potential business or venture is conducted to
determine its strengths and weaknesses, potential opportunities and threats, resources
required to carry out, and ultimate success prospects. Two criteria should be considered when
judging feasibility: the required cost and expected value.

In a feasibility study, a proposed plan or project is evaluated for its practicality. As part of
a feasibility study, a project or venture is evaluated for its viability in order to determine
whether it will be successful.

As the name implies, a feasibility analysis is used to determine the viability of an idea,
such as ensuring a project is legally and technically feasible as well as economically justifiable. It
tells us whether a project is worth the investment—in some cases, a project may not be doable.

There can be many reasons for this, including requiring too many resources, which not
only prevents those resources from performing other tasks but also may cost more than an
organization would earn back by taking on a project that isn’t profitable.

A well-designed study should offer a historical background of the business or project,

such as a description of the product or service, accounting statements, details of operations and
management, marketing research and policies, financial data, legal requirements, and tax
obligations. Generally, such studies precede technical development and project
implementation.

Project management is the process of planning, organizing, and managing resources to

bring about the successful completion of specific project goals and objectives. A feasibility
study is a preliminary exploration of a proposed project or undertaking to determine its merits
and viability.

A feasibility study aims to provide an independent assessment that examines all aspects
of a proposed project, including technical, economic, financial, legal, and environmental
considerations. This information then helps decision-makers determine whether or not to
proceed with the project.
 The feasibility study results can also be used to create a realistic project plan and
budget. Without a feasibility study, it cannot be easy to know whether or not a proposed
project is worth pursuing.
Types of Feasibility Study

A feasibility analysis evaluates the project’s potential for success; therefore, perceived
objectivity is an essential factor in the credibility of the study for potential investors and lending
institutions.

There are five types of feasibility study—separate areas that a feasibility study
examines, described below.

1. Technical Feasibility
This assessment focuses on the technical resources available to the organization. It helps
organizations determine whether the technical resources meet capacity and whether the
technical team is capable of converting the ideas into working systems. Technical feasibility also
involves the evaluation of the hardware, software, and other technical requirements of the
proposed system. As an exaggerated example, an organization wouldn’t want to try to put Star
Trek’s transporters in their building—currently, this project is not technically feasible.

2. Economic Feasibility
This assessment typically involves a cost/ benefits analysis of the project, helping
organizations determine the viability, cost, and benefits associated with a project before
financial resources are allocated. It also serves as an independent project assessment and
enhances project credibility—helping decision-makers determine the positive economic
benefits to the organization that the proposed project will provide.

3. Legal Feasibility
This assessment investigates whether any aspect of the proposed project conflicts with
legal requirements like zoning laws, data protection acts or social media laws. Let’s say an
organization wants to construct a new office building in a specific location. A feasibility study
might reveal the organization’s ideal location isn’t zoned for that type of business. That
organization has just saved considerable time and effort by learning that their project was not
feasible right from the beginning.

4. Operational Feasibility
This assessment involves undertaking a study to analyze and determine whether—and
how well—the organization’s needs can be met by completing the project. Operational
feasibility studies also examine how a project plan satisfies the requirements identified in the
requirements analysis phase of system development.

5. Scheduling Feasibility
 This assessment is the most important for project success; after all, a project will fail if
not completed on time. In scheduling feasibility, an organization estimates how much time the
project will take to complete.

When these areas have all been examined, the feasibility analysis helps identify any
constraints the proposed project may face, including:

● Internal Project Constraints: Technical, Technology, Budget, Resource, etc.

● Internal Corporate Constraints: Financial, Marketing, Export, etc.
● External Constraints: Logistics, Environment, Laws, and Regulations, etc.

Importance of Feasibility Study

The importance of a feasibility study is based on organizational desire to “get it right”

before committing resources, time, or budget. A feasibility study might uncover new ideas that
could completely change a project’s scope. It’s best to make these determinations in advance,
rather than to jump in and to learn that the project won’t work. Conducting a feasibility study is
always beneficial to the project as it gives you and other stakeholders a clear picture of the
proposed project.

Below are some key benefits of conducting a feasibility study:

● Improves project teams’ focus
● Identifies new opportunities
● Provides valuable information for a “go/no-go” decision
● Narrows the business alternatives
● Identifies a valid reason to undertake the project
● Enhances the success rate by evaluating multiple parameters
● Aids decision-making on the project
● Identifies reasons not to proceed

Benefits of a Feasibility Study

Preparing a project's feasibility study is an important step that may assist project
managers in making informed decisions about whether or not to spend time and money on the
endeavor.
● Feasibility studies may also help a company's management avoid taking on a tricky
business endeavor by providing them with critical information.

● It aids in the creation of new ventures by providing information on factors such as:
o how a company will work,
o what difficulties it could face,
o who its competitors are, and
o how much and where it will get its funding from.
 These marketing methods are the goal of feasibility studies, which try to persuade
financiers and banks whether putting money into a certain company venture
makes sense.

● Help to determine if your business idea is viable and has the potential to be successful.

Several factors need to be considered when conducting a feasibility study,

o the marketability of your product or service
o the competition
o the financial stability of your company, and more.

A feasibility study should cover the amount of technology, resources

required, and ROI.

The results of your feasibility studies study are summarized in a feasibility report,
which typically comprises the following sections.
● Executive summary
● Specifications of the item or service
● Considerations for the future of technology
● The marketplace for goods and services
● Approach to marketing
● Organization/staffing
● Schedule
● The financial forecasts
● Recommendations based on research

Tools for Conducting a Feasibility Study

Suggested Best Practices

While every project has its own goals and needs, the following are best practices for conducting
a feasibility study.
● Do a preliminary analysis. This includes getting feedback from relevant stakeholders on
the new project. Also, look for other business scenarios.
● To ensure that the data is solid, determine and ask queries about it in the initial phase.
● Take a market survey to identify market demand and opportunities for the new concept
or business.
● Create an organizational, operational, or business plan. This includes identifying how
much labor is required, what costs, and how long.
● Make a projected income statement that involves revenue, operating expenses, and
profit.
● Create an opening day balance sheet.
● You will need to identify and address any vulnerabilities or obstacles.
 ● Take an initial decision to go ahead with the plan.

Components of a feasibility study

some suggested components for conducting a feasibility study:

● Executive Summary: Write a narrative describing the project, product, or service.
● Technological considerations: Ask yourself what it will take. Are you able to afford
it? How much will it cost?
● Current marketplace: Find out the market for your product, service, or plan in the
local and global markets.
● Marketing strategy: Define in the detailed description.
● Required staff: What human resources are needed for this project?
● Timeline and schedule: Use important interim markers to indicate when the project
will be completed.
● Project financials. Project financials are the different ways managers can account for
money spent and earned on projects. One of the most important aspects of
financial management is creating and tracking accurate project financials.

The feasibility study will answer important questions about the proposed business,
including:
● What is the target market for this business?
● Who are the competitors?
● What are the costs associated with starting and running this business?
● What are the potential risks and rewards associated with this venture?
● How much revenue can this business generate?
● What are the estimated profits and losses for this business?
● What is the potential for growth in this industry?

7 Steps to Do a Feasibility Study

1. Conduct a Preliminary Analysis

A preliminary investigation is necessary to determine whether a full feasibility study is
warranted. During this stage, key information will be gathered to assess the project's potential
and make a preliminary decision about its feasibility. This should include a review of relevant
documents, interviews with key personnel, and surveys of potential customers or users.

2. Prepare a Projected Income Statement

To do a feasibility study, you must create a projected income statement. Your projected
income statement will show how much money your business is expected to make in the
coming year. It will include both your estimated revenue and your estimated expenses. This
document will be essential in helping you make informed decisions about your business.

3. Conduct a Market Survey, or Perform Market Research

Conducting market research is an important step in any feasibility study. By
understanding the needs and wants of your potential customers, you can determine if there is
a market for your product or service. You can also get an idea of what your competition is
doing and how to best position your business to meet the needs of your target market.

There are a variety of ways to conduct market research. One popular method is to
conduct a survey. You can survey potential customers directly or use data from secondary
sources such as surveys conducted by other organizations. You can also use focus groups or
interviews to get feedback from potential customers.

Once you have gathered your data, you can use it to create a profile of your ideal
customer. This will help you understand your target market and how to reach them.

4. Plan Business Organization and Operations

When starting a business, one of the first things you need is to plan your organization
and operations. This involves creating a structure for your company and figuring out the logistics
of how you will run it. There are many factors to consider when planning your organization and
operations, such as:
● Company Structure: What type of company will you be (sole proprietorship, partnership,
corporation, etc.)? What will the hierarchy look like?
● Location: Where will your business be located? Will you have a physical storefront or
operate online only?
● Marketing: How will you promote your business?

5. Prepare an Opening Day Balance Sheet

The opening day balance sheet is a snapshot of the company's financial position at the
beginning of the business venture. The purpose of the opening day balance sheet is to give an
idea of the amount of money that the company has to work with and track its expenses and
income as they occur. This information is vital to making sound business decisions. The opening
day balance sheet will include the following:
● Cash on hand
● Accounts receivable
● Inventory
● Prepaid expenses
● Fixed assets
● Accounts payable
● Notes payable
● Long-term liabilities
 ● Share

6. Review and Analyze All Data

The feasibility study should include reviewing and analyzing all data relevant to the
proposed project. The data collected should be verified against source documentation, and any
discrepancies should be noted. The purpose of the feasibility study is to provide a basis for
making a decision, and the data should be sufficient to support that decision.

The analysis should consider both the positive and negative aspects of the proposed
project. The financial analysis should be thorough, and all assumptions should be documented.
The risk assessment should identify any potential risks and mitigation strategies. The team
assigned to the project should review the feasibility study and recommend the organization's
leadership.

Organizational leadership should decide whether to proceed with the project based on
the feasibility study's findings. If the project is approved, the organization should develop a
project plan that includes a detailed budget and timeline

7. Make a Go/No-Go Decision

It is important to know when to cut your losses when starting a business. The go/no-go
decision in a feasibility study comes in. The go/no-go decision is a key part of a feasibility study,
and it can help you determine whether or not your business idea is worth pursuing.

Making the go/no-go decision is all about risk assessment. You need to weigh the risks
and rewards of starting your business and decide whether the potential rewards are worth the
risks. If the risks are too high, you may want to reconsider your business idea.

.
Pre-Feasibility Study

A pre-feasibility study, is a process that’s undertaken before the feasibility study. It

involves decision-makers and subject matter experts who will prioritize different project ideas
or approaches to quickly determine whether the project has fundamental technical, financial,
operational or any other evident flaws. If the project proposal is sound, a proper feasibility
study will follow.

Technical Feasibility Study

A technical feasibility study consists in determining if your organization has the technical
resources and expertise to meet the project requirements. A technical study focuses on
assessing whether your organization has the necessary capabilities that are needed to execute a
project, such as the production capacity, facility needs, raw materials, supply chain and other
inputs. In addition to these production inputs, you should also consider other factors such as
regulatory compliance requirements or standards for your products or services.
 Economic Feasibility Study
Also called financial feasibility study, this type of study allows you to determine whether a
project is financially feasible. Economic feasibility studies require the following steps:
● Before you can start your project, you’ll need to determine the seed
capital, working capital and any other capital requirements, such as
contingency capital. To do this, you’ll need to estimate what types of
resources will be needed for the execution of your project, such as raw
materials, equipment and labor.
● Once you’ve determined what project resources are needed, you should
use a cost breakdown structure to identify all your project costs.
● Identify potential sources of funding such as loans or investments from
angel investors or venture capitalists.
● Estimate the expected revenue, profit margin and return on investment
of your project by conducting a cost-benefit analysis, or by using
business forecasting techniques such as linear programming to estimate
different future outcomes under different levels of production, demand
and sales.
● Estimate your project’s break-even point.
● Conduct a financial benchmark analysis with industrial averages and
specific competitors in your industry.
● Use pro forma cash flow statements, financial statements, balance
sheets and other financial projection documents.

Legal Feasibility Study

Your project must meet legal requirements including laws and regulations that apply to
all activities and deliverables in your project scope. In addition, think about the most favorable
legal structure for your organization and its investors. Each business legal structure has
advantages and disadvantages when it comes to liability for business owners, such as limited
liability companies (LLCs) or corporations, which reduce the liability for each business partner.

Market Feasibility Study

A market feasibility study determines whether your project has the potential to succeed
in the market. To do so, you’ll need to analyze the following factors:

● Industry overview: Assess your industry, such as year-over-year growth,

identify key direct and indirect competitors, availability of supplies and
any other trends that might affect the future of the industry and your
project.

● SWOT analysis: A SWOT analysis allows organizations to determine how

competitive an organization can be by examining its strengths,
weaknesses and the opportunities and threats of the market. Strengths
are the operational capabilities or competitive advantages that allow an
organization to outperform its competitors such as lower costs, faster
 production or intellectual property. Weaknesses are areas where your
business might be outperformed by competitors. Opportunities are
external, such as an underserved market, an increased demand for your
products or favorable economic conditions. Threats are also external
factors that might affect your ability to do well in the market such as
new competitors, substitute products and new technologies.
● Market research: The main purpose of market research is to determine
whether it’s possible for your organization to enter the market or if there
are barriers to entry or constraints that might affect your ability to
compete. Consider variables such as pricing, your unique value
proposition, customer demand, new technologies, market trends and
any other factors that affect how your business will serve your
customers. Use market research techniques to identify your target
market, create buyer personas, assess the competitiveness of your niche
and gauge customer demand, among other things.

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BUSINESS PLAN

A business plan is an essential written document that provides a description and

overview of your company's future. All businesses should have a business plan. The plan should
explain your business strategy and your key goals to get from where you are now to where you
want to be in the future

A good business plan guides you through each stage of starting and managing your
business. You'll use your business plan like a GPS for how to structure, run, and grow your new
business. It's a way to think through and detail all the key elements of how your business will
run

Here are 5 reasons why you need a business plan:

1. It will help you steer your business as you start and grow.

Think of a business plan as a GPS to get your business going. A good business plan
guides you through each stage of starting and managing your business. You’ll use your
business plan like a GPS for how to structure, run, and grow your new business. It’s a
way to think through and detail all the key elements of how your business will run.
2. It’s not as hard as you think.

A business plan is a written tool about your business that projects 3-5 years ahead and
outlines the path your business intends to take to make money and grow revenue. Think
of it as a living project for your business, and not as a one-time document. Break it down
into mini-plans – one for sales and marketing, one for pricing, one for operations, and so
on.

3. It will help you to reach business milestones.

A well-thought-out business plan helps you to step back and think objectively about the
key elements of your business and informs your decision making as you move forward. It
is essential whether you need to secure a business loan or not. Keep in mind that the
plan does not have to be like an encyclopedia and does not have to have all the answers.

4. It can help you get funding.

Business plans can help you get funding or bring on new business partners. Having one
in place will help investors feel confident that they will see a return on their
investment. Your business plan is the tool you will use to persuade others that working
with you (or investing in your business) is a smart decision.
5. There’s no wrong way to write a business plan.

There is no right or wrong way to write a business plan. You can pick a plan format that
works best for you. What’s important is that your business plan meets your needs. Most
business plans fall into one of two common categories: traditional or lean startup.

Traditional business plans are more common, use a standard structure, and encourage
you to go into detail in each section. Traditional plans tend to require more work
upfront. Lean startup business plans are less common, but still use a standard structure.
They focus on summarizing only the most important points of the key elements of your
plan. They can take as little as one hour to make and are typically just one page.

● A business plan is a document describing a company's business activities and how it

plans to achieve its goals.
● Startup companies use business plans to get off the ground and attract outside
investors.
● For established companies, a business plan can help keep the executive team focused
on and working toward the company's short- and long-term objectives.
● There is no single format that a business plan must follow, but there are certain key
elements that most companies will want to include.
 How to Write an Executive Summary for a Business Plan

Executive summary must extract the main points of all the sections of your
business plan. A business plan is a document that describes all the aspects of a business,
such as its business model, products or services, objectives and marketing plan, among
other things. They’re commonly used by startups to pitch their ideas to investors.

Business plan sections

● Company description: Provide a brief background of your company, such as when it was
established, its mission, vision and core values.

● Products & services: Describe the products or services your company will provide to its
customers.

● Organization and management: Explain the legal structure of your business and the
members of the top management team.

● SWOT analysis: A SWOT analysis explains the strengths, weaknesses, opportunities and
threats of your business. They describe the internal and external factors that impact
your business competitiveness.

● Industry & market analysis: This section should provide an overview of the industry and
market in which your business will compete.

● Operations: Explain the main aspects of your business operations and what sets it apart
from competitors.

● Marketing plan: Your marketing plan describes the various strategies that your business
will use to reach its customers and sell products or services.

● Financial planning: Here, you should provide an overview of the financial state of your
business. Include income statements, balance sheets and cash flow statements.

● Funding request: If you’re creating your business plan to request funding, make sure to
explain what type of funding you need, the timeframe for your funding request and an
explanation of how the funds will be used.
 Nbt
MARKETING

Marketing refers to the activities a company undertakes to promote the buying or selling
of its products or services. Marketing includes advertising and allows businesses to sell products
and services to consumers, other businesses, and organizations.

Marketing refers to all activities a company does to promote and sell products or
services to consumers.

At its core, marketing seeks to take a product or service, identify its ideal customers, and
draw the customers' attention to the product or service available.

Marketing as a discipline involves all the actions a company undertakes to draw in

customers and maintain relationships with them. Networking with potential or past clients is
part of the work too and may include writing thank you emails, playing golf with prospective
clients, returning calls and emails quickly, and meeting with clients for coffee or a meal.

Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large. Marketing refers to any activities undertaken by a company to promote the buying or
selling of a service. If there is a limited quantity of a product, a company may market itself in an
attempt to be better positioned as one of the few who get to buy something.

Importance of marketing

Marketing is important for a few reasons. First, marketing campaigns may be the first
time a customer interacts or is exposed to a company's product. A company has the opportunity
to educate, promote, and encourage potential buyers.

Marketing also helps shape the brand image a company wants to convey. For example,
an outdoor camping gear company that wants to be known for its rugged, tough goods can
embark on specific campaigns that embody these traits and make these emotions memorable
to prospective customers.

Purpose of Marketing

An important goal of marketing is propelling a company’s growth. This can be seen

through attracting and retaining new customers.
 Companies may apply many different marketing strategies to achieve these goals. For
instance, matching products with customers' needs could involve personalization, prediction,
and essentially knowing the right problem to solve.

Another strategy is creating value through the customer experience. This is

demonstrated through efforts to elevate customer satisfaction and remove any difficulties with
the product or service.

TYPES OF MARKETING STRATEGIES

Marketing is comprised of an incredibly broad and diverse set of strategies. The industry
continues to evolve, and the strategies below may be better suited for some companies over
others.

A. Traditional Marketing Strategies

Before technology and the Internet, traditional marketing was the primary way companies
would market their goods to customers. The main types of traditional marketing strategies
include:

● Outdoor Marketing: This entails public displays of advertising external to a consumer's

house. This includes billboards, printed advertisements on benches, sticker wraps on
vehicles, or advertisements on public transit.
● Print Marketing: This entails small, easily printed content that is easy to replicate.
Traditionally, companies often mass-produced printed materials, as the printed content
was the same for all customers. Today, more flexibility in printing processes means that
materials can be differentiated.
● Direct Marketing: This entails specific content delivered to potential customers. Some
print marketing content could be mailed. Otherwise, direct marketing mediums could
include coupons, vouchers for free goods, or pamphlets.
● Electronic Marketing: This entails the use of TV and radio for advertising. Through short
bursts of digital content, a company can convey information to a customer through
visual or auditory media that may grab a viewer's attention better than a printed form.
● Event Marketing: This entails attempting to gather potential customers at a specific
location for the opportunity to speak with them about products or demonstrate
products. This includes conferences, trade shows, seminars, roadshows, or private
events.
 B. Digital Marketing

The marketing industry has been forever changed with the introduction of digital marketing.
From the early days of pop-up ads to targeted placements based on viewing history, there are
now innovative ways companies can reach customers through digital marketing.

● Search Engine Marketing: This entails companies attempting to increase search traffic
through two ways. First, companies can pay search engines for placement on result
pages. Second, companies can emphasize search engine optimization (SEO) techniques
to organically place high on search results.
● E-mail Marketing: This entails companies obtaining customer or potential customer
e-mail addresses and distributing messages or newsletters. These messages can include
coupons, discount opportunities, or advance notice of upcoming sales.
● Social Media Marketing: This entails building an online presence on specific social
media platforms. Like search engine marketing, companies can place paid
advertisements to bypass algorithms and obtain a higher chance of being seen by
viewers. Otherwise, a company can attempt to organically grow by posting content,
interacting with followers, or uploading media like photos and videos.
● Affiliate Marketing: This entails using third-party advertising to drive customer interest.
Often, an affiliate that will get a commission from a sale will do affiliate marketing as the
third party is incentivized to drive a sale for a good that is not their own original product.
● Content Marketing: This entails creating content, whether eBooks, infographics, video
seminars, or other downloadable content. The goal is to create a product (often free) to
share information about a product, obtain customer information, and encourage
customers to continue with the company beyond the content.

Benefits of Marketing

Well-defined marketing strategies can benefit a company in several ways. It may be

challenging to develop the right strategy or execute the plan; when done well, marketing can
yield the following results:
● Audience Generation. Marketing allows a company to target specific people it believes
will benefit from its product or service. Sometimes, people know they have the need.
Other times, they don't realize it. Marketing enables a company to connect with a cohort
of people that fit the demographic of whom the company aims to serve.
● Inward Education. Marketing is useful for collecting information to be processed
internally to drive success. For example, consider market research that finds a certain
product is primarily purchased by women aged 18 to 34 years old. By collecting this
information, a company can better understand how to cater to this demographic, drive
sales, and be more efficient with resources.
● Outward Education. Marketing can also be used to communicate with the world what
your company does, what products you sell, and how your company can enrich the lives
of others. Campaigns can be educational, informing those outside of your company why
 they need your product. In addition, marketing campaigns let a company introduce itself,
its history, its owners, and its motivation for being the company it is.
● Brand Creation. Marketing allows for a company to take an offensive approach to
creating a brand. Instead of a customer shaping their opinion of a company based on
their interactions, a company can preemptively engage a customer with specific content
or media to drive certain emotions or reactions. This allows a company to shape its
image before the customer has ever interacted with its products.
● Long-lasting. Marketing campaigns done right can have a long-lasting impact on
customers. Consider Poppin' Fresh, also known as the Pillsbury Doughboy. First
appearing in 1965, the mascot has helped create a long-lasting, warm, friendly brand for
Pillsbury.3
● Financial Performance. The ultimate goal and benefit of marketing are to drive sales.
When relationships with customers are stronger, well-defined, and positive, customers
are more likely to engage in sales. When marketing is done right, customers turn to your
company, and you gain a competitive advantage over your competitors. Even if both
products are exactly the same, marketing can create that competitive advantage for why
a client picks you over someone else.

Limitations of Marketing

Though there are many reasons a company embarks on marketing campaigns, there are
several limitations to the industry.
● Oversaturation. Every company wants customers to buy its product and not its
competitors. Therefore, marketing channels can be competitive as companies strive to
garner more positive attention and recognition. If too many companies are competing, a
customer's attention may be strongly diluted, resulting in any form of advertising not
being effective.
● Devaluation. When a company promotes a price discount or sale, the public may
psychologically eventually see that product as worth less in the future. If a campaign is
so strong, customers may even wait to purchase a good knowing or remembering what
the sale price was from before. For example, some may intentionally hold off buying
goods if Black Friday is approaching.
● No Guaranteed Success. Marketing campaigns may incur upfront expenses that hold no
promise of future success. This is also true of market research studies, where time,
effort, and resources are poured into a study that may yield no usable or helpful results.
● Customer Bias. Loyal, long-time customers need no enticing to buy a company's brand
or product. However, newer, uninitiated customers may. Marketing naturally is biased
towards non-loyal patrons as those who already support the company would be better
served by further investment in product improvement.
● Cost. Marketing campaigns may be expensive. Digital marketing campaigns may be
labor-intensive to set up and costly to maintain the scheduling, implementation, and
execution of the plan. Don't forget about the headlines that promote Super Bowl
commercial expenses in the millions.
 ● Economy-Dependent. Marketing is most successful when people have capital to spend.
Though marketing can create non-financial benefits such as brand loyalty and product
recognition, the ultimate goal is to drive sales. During
unfavorable macroeconomic conditions when unemployment is high or recession
concerns are elevated, consumers may be less likely to spend no matter how great a
marketing campaign may be.

Importance of Marketing

Marketing is important for a few reasons. First, marketing campaigns may be the first
time a customer interacts or is exposed to a company's product. A company has the opportunity
to educate, promote, and encourage potential buyers.

Marketing also helps shape the brand image a company wants to convey. For example,
an outdoor camping gear company that wants to be known for its rugged, tough goods can
embark on specific campaigns that embody these traits and make these emotions memorable
to prospective customers.

THE 4 Ps OF MARKETING

A commonly used concept in the marketing field, the Four Ps of marketing looks at four
key elements of a marketing strategy. The Four Ps consist of product, price, place, and
promotion.

● Product
Product refers to an item or items the business plans to offer to customers. The product
should seek to fulfill an absence in the market or fulfill consumer demand for a greater amount
of a product already available. Before they can prepare an appropriate campaign, marketers
need to understand what product is being sold, how it stands out from its competitors, whether
the product can also be paired with a secondary product or product line, and whether there are
substitute products in the market.

● Price
Price refers to how much the company will sell the product for. When establishing a price,
companies must consider the unit cost price, marketing costs, and distribution expenses.
Companies must also consider the price of competing products in the marketplace and whether
their proposed price point is sufficient to represent a reasonable alternative for consumers.
 ● Place
Place refers to the distribution of the product. Key considerations include whether the
company will sell the product through a physical storefront, online, or through both distribution
channels. When it's sold in a storefront, what kind of physical product placement does it get?
When it's sold online, what kind of digital product placement does it get?

● Promotion
Promotion, the fourth P, is the integrated marketing communications campaign. Promotion
includes a variety of activities such as advertising, selling, sales promotions, public relations,
direct marketing, sponsorship, and guerrilla marketing.

Promotions vary depending on what stage of the product life cycle the product is in.
Marketers understand that consumers associate a product’s price and distribution with its
quality, and they take this into account when devising the overall marketing strategy.

Bringing it all together

While each P works great as an individual metric, they work even better when used
together. For example, the cost of manufacturing your product should directly factor into its
price; where you choose to sell your products should influence how you promote and advertise
them; and so on.

The 4 Ps of marketing are split up just to make them easier to understand, but in
practice, they're inseparable. When planning your overall marketing strategy, don't neglect any
single area. Instead, consider how the choices you make for one will impact the others, and aim
for marketing strategies that complement all four areas at once.
Types of Marketing Concepts

The five marketing concepts are production, product, selling, marketing, and societal. The
below list provides further details about each type.

● Production - The focus is on producing large amounts of a product with this marketing
concept. It also focuses on the product being readily available to the customer at a low
cost. The thought process of the buyer could be, ''It's right here and it's affordable, so
why not buy it?''
● Product - In this concept, the emphasis is on updating and improving the quality of the
product. These actions, along with providing features that are useful and appeal strongly
to customers, allow for the product to be offered at a higher price. The thought process
of the customer could be, ''It's so special, it's worth buying.''
● Selling - This concept relies on strong persuasion or even aggressive selling to convince
as many customers as possible to buy. There is less emphasis on the needs of the
purchaser and more emphasis on making the sale. The thought process of the consumer
might be, ''Ok, ok! You've convinced me. I'll buy it.''
● Marketing - This concept focuses on the needs and desires of the customer. The goal is
to deliver a high-value product that satisfies the consumer. The thought process of the
purchaser might be, ''It's just what I need and want! I'm pleased to buy it.''
● Societal - This concept differs from the others. The aim is not only profits, but also social
responsibility. The thought process of the buyer might be, ''It feels good to buy what I
want, while making the world a better place.''

Other marketing mixes

The four Ps aren’t the only marketing mix used today. Some other modern marketing mixes
include the five Ps, the seven Ps, and the 5 Cs. Although each of these reflects certain aspects of
the four Ps, they also each possess some unique elements that alter their emphasis on the
marketing process.

The five Ps
The five Ps are product, price, place, promotion, and people.

Today, many marketers use the five Ps over the four Ps because it centers the
experiences of customers and staff in the marketing process. Typical considerations include how
a customer behaves, their experience with the product, and their overall satisfaction with the
business.

The seven Ps
The seven Ps are product, price, place, promotion, people, processes, and physical
evidence.
 The seven Ps are a further elaboration of the five Ps, adding considerations of the
processes that define the customer experience and the physical evidence that the target market
needs to see to become customers. While processes might involve the specific customer service
processes that define a product, physical evidence can be websites or store displays that help
the target market imagine themselves using the product.

The five Cs

The Five C’s of Marketing are the five most important areas of marketing. When marketing
executives make marketing decisions, they should consider the five C’s of marketing. The five C’s
stand for:

● Company,
● Customers,
● Collaborators,
● Competitors, and
● Climate.

The five C’s act as a guideline when we are creating a marketing plan or devising a marketing
strategy.
● Company
This involves an analysis of the company’s product line, its culture, goals and objectives,
and image in the market. We also look at the company’s technology and experience.
The main aim here is to determine whether the company is in the best position to meet
customer needs.
● Collaborators
Collaborators are businesses or entities that can help the company achieve its goals and
objectives.

Suppliers and distributors, for example, are collaborators.

● Customers
It is important to identify your customers and determine which of their needs you are
attempting to satisfy. What tangible and intangible benefits is the customer seeking?
To compete successfully in the marketplace, you need to know what the motivation behind your
customers’ purchases is.

Possible areas of research are market size, market growth, market segments, purchasing
frequency, and seasonal factors.

● Competitors
Above all, you need to know who you are competing against in meeting your customers’
needs. Is the other company a potential threat or an active competitor? How many of them are
there?
 What are your rivals’ weaknesses and strengths? Is there anything you can do regarding
those weaknesses and strengths?

● Climate
When looking at climate, we are assessing macro-environmental factors, i.e., external factors.
The economic environment, political environment, and regulatory environment, for example,
are part of the ‘climate.’

Society’s fashions and trends, i.e., the social/cultural environment, are also part of the
‘climate.’

Examining the climate also includes analyzing the technological environment. What is
the impact of technology on, for example, demand?

Marketing management refers to the control and operations of various marketing

activities and the people involved in those activities, such as managers, marketing management
professionals, contractors, and more. Relevant actives often include: Setting goals and
developing marketing strategies.

Marketing management works to ensure a company is profitable by gaining new

customers, expanding a customer base, building a company's reputation, and improving
customer interactions.

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