Sales & Marketing Management

c. Shrinking market

If your research indicates that the market is shrinking some questions to ask
are:

d. An increasingly specialized market

If your research indicates that, the market is becoming increasingly specialized
in the marketing of the products to the consumer; then asks the following
questions:

How fast is the market shrinking?

In what way is it shrinking?

Will there always be a demand for some of the products?

If so, which products will likely be retained, and how much investment

will they require?

What will the return on investment be of handling the product? In other

words, will it be worth keeping?

What is the rate of specialization?

What will be the major areas of specialization?

How big will each specialized market be in your business area?

Would you be able to sustain your business if you specialized?

What volume of sales would needed to be generated in the more specialized

product assortment to break even and make a profit.

Would specialization make the business more vulnerable to changes in the

market?

How many other businesses are also specializing in your market?

If everyone specializes, will that create a market for some businesses to

remain generalists?

In that event, what is that market potential if specialists take a major part of

the market?