BDS market development guide.pdf - PACA

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• Consumers—such as female-owned businesses and formally registered businesses; and
• Sub-sector—such as small-scale manufacturing, textile production, and agro-processing.
The market may also be delineated by the criteria of the intervening agency, based on:
• Strategic focus—such as priority groups and environmental protection; and
• Capacity of Intervening Agency—that is, what the agency can do; its experience and
competence in certain types of intervention (for example, vouchers) or with specific subsectors
(such as metal workshops).
Although it is sensible to delineate the market in terms
of a facilitators’ core competence, there is a risk of
shaping the view of the market problem (and thus the
intervention) by what we want it to be, not what it
really is. We need to guard against this risk by looking
at both sides of the market equation—what consumers
want and what providers can do—and developing an
accurate market picture on the basis of a more wellrounded
view.
Level of Effort
How much research is required is typically a function
of two variables: who’s doing the assessment, and the
relative closeness of the assessor to the market. The
further away from the market an organization is and
the bigger—and more complex—it is, the more formal
and extensive should be the market assessment.
Donors are typically far from markets and should rely
on formal research techniques as the basis for making
decisions on intervention options. Large commercial
providers of services—and because of their market
reach and organizational complex—perform formal
and structure market research as the basis for business
decisions. In contrast, the closer to the market (or in
the market) and the smaller the organization or firm
(less complex), the more market analysis can be based
Box 4: Market-Analysis Tools
The nature of this analysis lends itself to
market-research-style studies, rather
than more conventional developmental
assessments. A usage, attitude, and
image (UAI) survey is a market-research
tool used by firms to take a broad look
at the current market for a specific
service from known suppliers. It can
also be used to assess demand of
multiple BDS products from different
markets. Focus-group discussions is a
qualitative market research tool used to
better understand how consumers
experience the use of services by
exploring with “qualified respondents”
how they perceive, choose, evaluate,
and value BDS. When used in
combination, these market-research
tools can be used to form a picture of
the market and to better pinpoint market
weaknesses. The information permits an
analysis of demand but also offers a
consumer’s perspective on supply by
looking at sources of services,
satisfaction by different providers, and
the use of substitutes. Consumer
research methods can ‘prepare the
ground’ for a closer look at the supply
side of the market using tailored
institutional assessment tools. 15
15 For more detail on the UAI and other market research tools, see MBP publication, “Applying Market
Research Tools to the Design and Improvement of Business Development Services,” Alexandra Overy
Miehlbradt, July 1999.
Chapter Two—Where We Are Now—A Framework for
Market Assessment and Intervention Choice