Page 79 - DMGT302_FUNDAMENTALS_OF_PROJECT_MANAGEMENT

Fundamentals of Project Management

Notes 2. Landed price for imported goods,

3. Average wholesale price, and
4. Average retail price.

Methods of Distribution and Sales Promotion

The method of distribution may vary with the nature of the product. Capital goods, industrial
raw materials or intermediates, and consumer products tend to have different distribution
channels. Likewise, methods used for sales promotion (advertising, discounts, gift schemes,
etc.) may vary from product to product.
The methods of distribution and sales promotion employed presently and their rationale must
be specified. Such a study may explain certain patterns of consumption and highlight the difficulties
that may be encountered in marketing the proposed products.

Consumers

Consumers may be characterized along two dimensions as follows:
Demographical and Sociological Attitudinal
Age Preferences
Sex Intentions
Income Habits
Profession Attitudes
Residence Responses
Social background

Supply and Competition

It is necessary to know the existing sources of supply and whether they are foreign or domestic.
For domestic sources of supply, information along the following lines may be gathered:

1. Location, present production capacity,
2. Planned expansion,

3. Capacity utilisation level,
4. Bottlenecks in production, and
5. Cost structure.

Competition from substitutes and near substitutes should be specified because almost any
product may be replaced by some other product as a result of relative changes in price, quality,
availability, promotional effort, and so on.

Government Policy

The role of the government in influencing the demand and market for a product may be
significant. Governmental plans, policies, and legislations, which have a bearing on the market
and demand of the product under examination, should be spelt out. These are reflected in
production targets in national plans, import and export trade controls, import duties, export

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