Marketing Analysis in Project Evaluation
Harvard Institute for International Development, Development Discussion Paper No. 341
58 Pages Posted: 16 Apr 2001 Last revised: 10 Nov 2008
Date Written: May 1, 1990
This paper presents how marketing concepts and tools may be applied in investment appraisal studies. The marketing evaluation process begins with a description of the project concept based on the market need the project aims to satisfy. This aids the definition of the project's relevant market and leads to an analysis of the market. The market consists of customers and competing suppliers. The project must try and match its potential capabilities to existing and potential customer needs. In doing this, the project gains competitive edge and maximizes potential performance.
Market performance is a measure of the project's ability to satisfy the key market need factors within its defined target market. The paper shows how a project analyst may evaluate a project's market performance. Such a measure may be used as an indicator of competitiveness by which to project market expansion and market share estimates. In economic analysis a market expansion, is an outward shift in the demand curve, and takes place when a project achieves a competitiveness rating higher than the level of other market competitors.
Keywords: Project Appraisal, Marketing, Competitiveness, Strategy, Market Analysis
JEL Classification: D11, D61, G31, M10, H43, M31
Suggested Citation: Suggested Citation