Market Appraisal• Whether demand projections made for the output of

the project is reasonable?– Based on available survey– Based on industry association projection– Independent market survey

• Adequacy of marketing infrastructure– Distribution network– Transport facilities– Warehousing and stock level

• Competency of marketing personnel

Market Appraisal• Market Survey

– Defining the target population– Selecting the sampling scheme and sample size– Developing Questionnaire– Recruiting and training the field investigators– Obtaining information as per the questionnaire from

respondents– Scrutinizing the gathered information– Analyzing and interpreting the information

Market Appraisal• Characteristics of the market– Demand of the product in past and present– Price– Falling demand– Analysis– Distribution Methods and sales promotion– Consumers– Supply and competition– Government policy

Market Appraisal• Demand Forecasting

– Qualitative Method• Executive opinion method- A group of managers plans for

expected future sales and estimates the sales that need to be achieved.

• Delphi Method- A panel of experts make there opinion through a questionnaire for a given situation. These responses are summarized by a central coordinator and again sent back to panel for refinement.

– Time Series Method• Trend Projection Method- Past consumption trends are used for

future demand projection.• Moving Average Method- Sales forecast for next period is done

on the basis of average sales of the past several periods.