Market Appraisal

Market Appraisal
Meaning -
• An appraisal is what you get when you ask an estate
agent what your property is worth. It's his advice to
you as to what he thinks you might be able to get on
the market if you list it with him. This appraisal is not a
proper valuation, and it cannot be used with a lender
to establish the market value of the property.
• Market appraisal is the review carried out by financial
institutions to ascertain that the product manufactured
by the project can be sold and its value realized.
 Market Appraisal
Importance -
• It ensure that there is potential market which can
be met by the production capacity of the unit.
• There is a well thought of sales and marketing
strategy favorable for long term operations.
• It ensures that the project has the competent
sales force and disturbution network to sell the
product manufactured.
 Aspects of Market Appraisal
Demand Analysis Market Analysis
• Trend • Demand of the product in
• Regression past and present
• End-use Method • Price
• Falling Demand
• Analysis
• Distribution Methods and
Sales promotion
• Consumers
• Supply and competition
• Government policy
 Product Positioning & Pricing
• Product Positioning will help place the product as a
differential identity in the eyes of the potential buyer.
• The strategy used for product positioning is usually the
result of an analysis of customers and competition
• Product Pricing decision is very important because it
has a direct effect on marketing and financial success
of the buisness.
• The basic rules of pricing are that they must cover
costs and should be reduced only through lower costs.
 Distribution & Promotional Strategies
• Product Positioning will help place the product as a
differential identity in the eyes of the potential buyer.
• The strategy used for product positioning is usually the
result of an analysis of customers and competition
• Product Pricing decision is very important because it
has a direct effect on marketing and financial success
of the business.
• The basic rules of pricing are that they must cover
costs and should be reduced only through lower costs.
 Impact of Market Appraisal
• Demand Forecasting
• Overview of Market
• Future Trading Potential
• Understanding Market Expectations
• Reduce Risk
• Increase Profit
• Customer Satisfaction
• Facilitate Goodwill
THANK YOU