Page 50 - DMGT552_VISUAL_MERCHANDISING

Unit 3: Image Mix

Market Analysis Notes

During the process of market selection, management evaluates a variety of factors in the target
regions. These include demographics, economic characteristics, the competitive environment,
and the overall potential of the area.
1. Population Characteristics
(i) Total size
(ii) Age and income distribution

(iii) Growth trends
(iv) Education levels
2. Labour Availability
(i) Availability of management candidates

(ii) Wage levels
(iii) Unions
3. Media Mix Issues
(i) Type of media coverage

(ii) Media overlap
(iii) Costs
4. Economic Characteristics
(i) Number and types of industry

(ii) Dominant industry
(iii) Growth projections
(iv) Financial base
5. Competitive Characteristics

(i) Saturation level
(ii) Number and size of competition
(iii) Competitive growth trends
6. Location Characteristics

(i) Number and type of locations
(ii) Costs
(iii) Access to customers
7. Regulation Characteristics

(i) Taxes
(ii) Licensing
(iii) Zoning restrictions

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