An undertsnding of the market situation and the activities of competitors in the market is important in the design of the company’s marketing program.

The understanding of the market and competitive situation should enable the firm to identify a specific market segments where there is an opportunity for profit and growth.

Once the target market has been identified, the marketing program can then be designed to suit the requirements of said market.

The program can includes the products determination of its quality, the prices at which it will be sold, the promotion for the products, the chanel of distribution or the middleman, the terms and conditions that will be given to these middlemen as well as the terms tat will be given to the ulitmate buyers,and a schedule of when the products will be made available.

The market program should also indicate the manpower required and the cost of the marketing program per year.

With the given target market and a given marketing program, the projected sales of the company for the next 5-10 years can then be estimated.