Agroindustrial project analysi

THE MARKETING FACTOR 57Responses by the competition to the marketing plan will varyaccording to the product's market position. For example, there willbe little reaction when the product is patented, when it captures alow market share, when it is not comparable to competing products,when it is only modestly profitable, or when competitors are financiallyweak.Even ssi's should have explicit marketing plans, which will berelatively simple because of the narrow product lines and smallscale but which will serve as a check to ensure attention to thenecessary marketing activities. More often than not, it is marketingproblems that cause ssi's to fail or stagnate.Salient points for project analysisThe marketing plan should be an integral part of all project proposals.In reviewing it, a project analyst should consider the followingquestions.Was the product adequately designed?* Characteristics desired by consumers?* Price of quality improvements?* Product's concept and prototype tested?* Results and design adjustments?* Final product market tested?* Design fit with consumer needs?* Capacity of ssi's to design?Was the appropriate pricing strategy adopted?* Cost-plus pricing feasible?* Prices regulated? subsidized?* Basis for markup?* Penetration pricing's effect on entry barriers, market size andshare?* Legal or ethical acceptability of predatory or preemptivepricing?* Volume effect of loss-leader pricing?* Feasibility of skimming?* Industry price leader?* Effects of following or deviating from price leader?* Basis of administered prices?* Futures markets or long-term contracts as pricing mechanism?* Expected changes in strategy over time?