Is there a market for the business idea?
Market Size- Profits made by businees, market shares of each business value of sales, no of employees, volume of sales.
Potential market growth; large- alot of potential customers small-potential but limited
Positioning the business idea
Strengths and weaknesses of existing suppliers- market leader controls suppliers but if new business suppliers may move to them
how they differentiate themselves-
Test marketing of a product to assess likely demand levels-
Sales Research-consumers are given an opportunity to try a new product e.g free sample
Controlled test marketing- a product is made available in few stores e.g only tesco stores
Actual test marketing- a full lunch of a product in restricted area e.g product is sold in usual outlets
consideration of how to turn product trial into repeat purchases.