Recap...

3) Corporate appraisal of strengths and

weaknesses

Marketing and distribution- market image,

distribution network, marketing techniques

Production and operations- capacity of plant

and machinery, raw materials

Research and development- record of new

production development, testing,
laboratories

Corporate resources and personnelcorporate image

Finance and accounting

4) Scouting of new ideas

Analyse the performance of existing

companies

Review imports and exports

Consider the suggestions of financial

institutions

Analyse economic and social trends

Study new technological developments

Explore the possibility of reviving sick units

Attend trade fairs

ALL IDEAS NEED NOT BE WISE

5) Preliminary screening of project ideas

Availability of inputs

Adequacy of market

Profit cost justification

Risk involved in the project

Compatibility with govt regulations

6) Profit potential of industries

Rivalry among exiting firms

Threat of new entrants

Threat of substitute products

Bargaining power of buyer

Bargaining power of suppliers

7) Choosing the best idea based on highest rank

Identify factors relevant for project rating

Assign weights to these factors

Rate the project proposal using rating scale

Multiply the factor rating with the rate factor

Find the project rating index

Select the project having the highest rate index

After the market ideas are generated, they

have to be evaluated to tested. Their
marketability, technical feasibility and cost
considerations are studied.

Market Appraisal

Market appraisal provides a detailed

analysis of all the market conditions
Market approval
Market appraisal certificate

Situation Analysis and

objective specification

The project manager studies customer

preferences, their capacity, competing firms
and their intermediaries
Project manager interacts with stakeholderschannel members, employees and competitors
of the firm
Defines the objectives of the study
Survey is done

Collection of
secondary
data
2 types of data- primary data and secondary
data
Primary data- internal primary data and
external primary data
Primary data- survey methods and
experimental methods
Survey method includes interviews and surveys
Experimental methods- Product testing,
psychological technique and consumer panel
technique
Secondary data

Product Testing- Appraisal of the product

performance done without using the product
brand name
Psychological testing- A researcher trained in
psychology tests the emotions of the
consumers
Customer Panel Technique- Selecting a group of
customers and interviewing them at different
intervals of time to note the change in
behavioral characteristics
Secondary data is collected from reports and
magazines