consumers and the environment. Today's managers are besieged by regulations, guidelines, conflicting needs of the organization and the need to balance all of these issues against the fundamental need to make a profit. The result is that managers must have a much broader understanding of their work environment and the environment in which their business operates.
Managers need to research the market to make sure that there is a market for their products and determine what that market size is and the salient features of the market. This research is especially important since the size of the market and the characteristics (such as who the consumers are, what they look for, and how they can be reached) will be the basis for the marketing program that is eventually implemented, and for any outside funding that may be sought. This research can also help the manager determine if the strategy is a viable one, or whether a different product or service should be considered.
Once the market is identified, the manager needs to calculate how much of that market he will be able to capture, and what that will translate into in terms of sales. This means that he needs to forecast sales over some future period of time, typically three years. During the first year, sales should be forecast on a monthly basis. During the second year, sales should be forecast on a quarterly basis, and during the third year (and beyond, if appropriate), annual sales should be forecast. These sales forecasts are essentially educated guesses, but if they are based on sound research, there is every likelihood that they will represent realistic numbers that can be used for decision making purposes. The time periods being forecast are compressed initially because it is easier to forecast over the short-term as opposed to the long-term.
A key part of a new business is where it is located. Some businesses, such as restaurants and retail operations, can trace t...