Developing a Marketing Plan
Business has been good and you need more space. You have just
obtained a new large order and need additional industrial capacity.
You may want to expand into another geographic area, or enter
a new market. If you are a health care provider, you may be seeking
to renovate your existing facilities or to add another aspect
to your business such as a new medical office complex. If you
are a land developer you may be considering constructing a housing
development. Whatever your reason, an improvement program seems
to be required.
But how do you know what size of facility to construct? How long
will it take to fill this envisioned additional space? Have you
envisioned too much or too little facility to meet your needs?
How long will the market last that appears to be fueling your
need to expand? What additional services or products will be needed
to support this market? If you are planning a housing development
project, what style and what size or configuration of the structure
are your customers wanting to purchase?
All types of businesses need to understand the answers to these
and many other questions in order to design a building program
that has a chance of meeting both long and short term needs. For
this reason it is highly recommended that a marketing study be
Many businesses are founded because the owner has perceived a
need and has figured out a way to meet that need. The market research
just fell into place. But as a business grows, the business environment
changes, the owner's business changes, product or service demand
changes due to varying customer requirements, or the competition
intensifies or diminishes. This is why market research is so important
to the business owner or manager.
When you are considering constructing a new or expanded facility
or a new development, it is crucial that you perform some marketing
research. Why? Because in order to construct facility improvements,
typically large capital expenditures will be made. In addition,
these improvements will also impact your operating and maintenance
costs. The aggregate of these costs may impact your business to
such an extent that the debt load is sufficient to curtail your
business growth, or threaten its very viability.
Market research can serve a variety of functions. We are suggesting
that the type and magnitude of the research conducted should be
focused on verifying the initial assumptions that form the basis
of your vision to expand. It should also provide definitive data
that can be used in the development of your project proforma revenue
and cost projections.
There are different forms of market research that can be used.
- Exploratory Research - defines a problem perhaps
uncovering a negative customer reaction to the product, housing
style or service and provides a basis to resolve the identified
Research - defines population or customer demographics.
It assists in understanding who is buying and why. Information
identified in these studies would assist in establishing and
verifying production quantities, housing starts, etc. and
provides a basis upon which to size your facility. This type
of study is also helpful in making a new product or development
- Causal Research - shows the impact or effect on sales
from a study of cause-and-effect linkages.
There are many companies that can help you complete such studies.
Should you need help in contacting such companies, we invite you
to contact us or sign our Guest
Book. We promise that we will not "bug" you!