Transcript Monopoly Market - Binus Repository

Matakuliah
Tahun
Versi
: J0464 / Business Feasibility Study
: 2007
: Revisi 3
Lecture 5
market aspects
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 MATERIAL
▓ Understanding Market
▓ Supply and Demand
▓ Market Types
▓ Measuring and forecasting demand
▓ Markov’s Chain Analysis
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 READING BOOK :
1. Husnan, Suad, dan Suwarsono.(2000). Studi
Kelayakan Proyek. UPP. AMP. YKPN, Yogyakarta
Bab. 3 hal 29 – 38
2. Umar, Husein (2003), Studi Kelayakan Bisnis
penerbit PT Gramedia Pustaka Utama, Jakarta Bab 2
hal 34 - 50
 ONLINE READING :
http://www.nakertrans.go.id/b_penting/PJM_Bidang_Eko
nomi.pdf
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 Understanding Market
Market, is a meeting place between sellers
and buyers, or a place where power sellers
and buyers meet to form a price.
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 B. Understanding Supply
And Demand
Supply means a quantity of goods that are
needed by consumer and have the capability
to buy it at a number of price level.
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 Ceteris Paribus
Assumption :
Law of demand that happens when a price of a good
rises, then the quantity of the goods demanded will
decrease, the same goes if the price of the goods
decrease, therefore the quantity of the goods
demanded would rise.
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 Supply means, various quantity
goods that are supplied in the market at a
various price level.
A few factor that influences supply :
Other goods’ price
 Production cost
 Company goals
 Level of Technology
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 C.
Types of Market
Types of Market can be seen from the seller side and
the consumer side.
Types of market from the seller side :
 Perfect Competitive Market
In perfect competitive market type, competitive
activities cannot be seen because there are no
limitation to the amount of seller and therefore
consumer could get a competitive market price.
Monopoly Market 
Monopoly market is a type of market that is controlled
only by one seller. In this matter, there are no
subsidized goods and there are problems for new
competitors from outside.
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 Oligopoly Market
Oligopoly market is a larger scale of monopoly
market. In deciding the price and product
quantity, because there’s a big influence from
other competitor.
 Monopolistic Market Competition
This market is a type of mix between perfect
competition and monopoly. It is said to be similar
to perfect competition market because there’s a
freedom for goods to enter and leave market and
the goods that are sold isn’t homogeny. However
it is similar to monopoly market because the
heterogenic goods is owned only in some big
companies.
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 There could be a number of reason how
monopolization of market could happen.
For example because of owning the raw
material, acquired the technical ability of a
particular production, patent rights, and
naturally because the scale of market isn’t
huge.
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 Types of market from the
consumer side :
 Consumer Market :
Market where goods and services are bought or
rent by individuals or family for private use.
Pasar Industri 
Market where goods and services are bought or
rent back to be used in producing other type of
goods or services (For further process).
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  Reseller Market
This market is also called as a mid-level trader that
consists of dealers, distributors, grosser, agent,
and retailer. All this traders sells back in order to
gain profit
 Government Market
Market consists of government units that buys or
rent goods and services to do government
activities, for example in the sector of education,
network, health, etc.
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 D.Measuring and Forecasting
Demand
1. Measuring market demand right now
There are three practical methods to estimate demandl they are :
 Estimating total market demand
Total market demand of a product is the total volume that are bought
by a group of particular consumer in a particular geographical area
within a particular time period in a particular marketing area.
Equalities : Q = n . p . q
Where :
Q = total market demand
n = amount of buyers in the market
p = average price of each unit
q = average amount bought by consumer annually
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 Estimating Market Demand Area
In choosing the best area, also to optimalize
allocation of marketing budget, it can be done with two
methods, they are :
a. Market Build Up
Used mainly by industry companies to identify all
potential buyers in every market and estimating its
potential buying.
b. Market Factor Index
Used by consumption goods company, to identify
market factors that correlates with the potential and joins
into a scaled index.
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 Estimating Actual selling
and Market Share
Companies can identify competitors and
estimate their sales, by analyzing the data
that are collected associations or research
organizations.
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 2.
Forecasting Future Demands
 Buying potential survey
Ask them with a hope that they’d answer objectively.
 The opinions of the seller worker
Company asks their employees to estimate sales of every
product in their own territories.
 The opinions of specialists
The opinion that are resulted from a full set of data and
analysis and scientifically is better than any academics nor
practitioners (Use Delphi Technique).
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 Regretion Analysis
Statistic Procedures
to find real factors that affects sales.
Rule :Y = a + b X
Where:
Y = Fixed variable
X = Free variable
a = Constant
b = Regression coefficient
Price a can be calculated with the rule :
a=
∑Y (∑X2) - ∑X - ∑XY
---------------------------n∑X2 – (∑X)2
Price b can be calculated with the rule :
b=
n∑XY – ∑X ∑Y
--------------------n∑X2 – (∑X)2
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 Time Analysis
Analysis that uses quantitative data in the past where data is summarised
into trend components, cycles, season and residue that uses statistic
procedure.
One of them uses the least square method, with the equality of :
Yt = a + bt
Prices of a and b is defined by the rule:
Y
Ty
a = ----- dan
b = -----n
t2
Where:
Y = data values from forecasting result
n = amount of data in time
t = particular time in code terms
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 Markov’s Chain Analysis
To forecast market share at this time and
in the future.
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 E.
Implication on BFS
The benefits of analysis in doing business feasibility study
(BFS) from market aspects, should :
1. Be able to decide a product or services that would be a
benchmark for the design of a product/service that are to be sold.
2. Able to decide types of market to be chosen, whether from a
seller point of view or the consumer’s.
3. Able to do analysis in order to be able to decide change in
consumer demand of a product that are to be sold along with the
change of the ability each seller in its supply in the market,
whether for now or the future.
4. Other than the PLC (Product Life Cycle), analysis should be able
to contain information about the market share of similar type of
products that are considered good competitor at this time or in the
future.
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 Characteristics of market
aspects in developed countries
 National demand for the particular product or service
isn’t too great
 Existence of a dividing line that can be clearly seen from
the available market segments.
 Many of the products made is a substitute product of
import products
 For some products, oftentimes there are a lot of
government intervention in influencing the market
mechanism
 Existence of a project that are decided upon a politic
decision
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
Question for market aspects from project
idea and the datas that are needed for its answers
Question
1. How much potential market is
available in the future?
2. How much market share could be
absorbed by that particular project
from the whole of potential market?
3. How is the growth of the
particular market share?
4. What marketing strategy is used
to achieve the market share that has
been defined?
Datas that are needed
1. The consumption in the past and
present, and its variables
2. Production demand in the past and
present along with the prediction in the
future
3. Import and export that has been
done for the suggested product
4. Competition structure
5. Personality, motivation, habits, and
consumer preference
6. Choosing marketing efforts that are
done and choosing the priority scale
from marketing mix
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
Evaluation from secondary data. Here are
secondary data resources
Secondary data evaluation
1.Who finds the secondary data and
what is the intention?
2.When was the data found and
publicised, and is it reliable to be used
as an analysis in investment?
3.Secondary population data, what is
the procedure in retrieving sample? Is it
reliable enough?
Secondary source and data
1. Indonesian population census report
2. Indonesian planning report
3. Indonesian statistic book
4. Bulletins that exists in each and
every departments.
5. Bulletins that are publicized by
bankers
4.How does data gathering being
done?
6. Bulletins that are publicized by
profession association
5.How does the editing process,
tabling, and analysis being done?
7. Seminar report, and other similar
ones
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 Market potential and Demand
market graph
Potential
Market
Forecasting
potential
market
Industry’s demand
Marketing
effort
industry
Potential
market
Total marketing
effort industry
Thank You,…
See you on lecture number
06