Question

 In context of market feasibility analysis the analyst should consider the following factor as a priority

• A. Target market attractiveness
• B. Financing of market expenditure
• C. Availability of marketing personnel
• D. Market leadership

Answer 1

The Correct Option is A

In the context of market feasibility analysis, it is crucial to assess various aspects to determine the viability and potential success of entering a new market. Here's a step-by-step explanation regarding the factors involved and why 'Target market attractiveness' is the priority:

1. Definition of Market Feasibility Analysis:
   • Market feasibility analysis involves evaluating the potential success of introducing a product or service in a target market.
   • The primary goal is to understand whether there is a demand for the product, the competitive landscape, and the potential for profitability.
2. Key Considerations in Market Feasibility Analysis:
   • Target Market Attractiveness: This involves examining market size, growth potential, customer needs, and preferences. It helps in determining if the market has the potential to support growth and profitability.
   • Financing of Market Expenditure: While important, financing is typically considered after assessing market attractiveness, as it determines how much a company can spend to enter and sustain in the market.
   • Availability of Marketing Personnel: Although important for execution of strategy, the presence of marketing personnel alone does not indicate whether a market is viable or attractive.
   • Market Leadership: Achieving market leadership is a long-term goal that is dependent on successfully entering and performing well in an attractive market.
3. Why Target Market Attractiveness is Prioritized:
   • Determining target market attractiveness is fundamental because it assesses if there is enough demand to justify the costs and efforts associated with entering the market.
   • An understanding of market attractiveness provides insights into the potential return on investment and informs strategic decisions on whether to proceed with market entry.
4. Conclusion: Among the options given, 'Target market attractiveness' is the correct factor to prioritize in a market feasibility analysis. It is the foundation upon which other elements, such as financing and strategy execution, are based.

Thus, the correct answer is: Target market attractiveness