RECOGNIZING AND UNDERSTANDING THE MARKET IN

ANIMATION

People who aspire to start a business related to animation need to explore economic,
cultural, and social conditions prevailing in an area. Needs and wants of the people in a certain
area that are not met may be considered as business opportunities. Identifying the needs of
the community, its resources, available raw materials, skills and appropriate technology can
help a new entrepreneur in seizing business opportunity.
There are thousands of products and services available to consumers today. At the
same time, there are unlimited opportunities for you to enter the marketplace and compete
effectively with a new product or service that is better than those offered by your
competitors.
The most important thing you can do before deciding what to sell is to think, the more
you think about a product or service before you bring it to market, the better your decisions
will be. If you are in the business of making short films, make sure you understand the whole
process from development, from preproduction, production and postproduction of
animation. This does not only apply to big projects, but even small films need to go through
the right process. Otherwise, they will be let behind. The best way to learn how it is done in
practice is to make your own short film.

LESSON 1: PLAYERS IN THE MARKET, PRODUCTS, AND SERVICES

FACTORS
To be successful in any type of business venture, potential entrepreneurs should
always look closely at the environment and market. They should always watch at these two
factors in entrepreneurship:

 Opportunities
o Factors that provide possibilities in the business environment.
 Constraints
o Factors that limit the ability to grow and reduce sales and profit potential.

COMPETITORS
If you are planning to put up a business, it is important to identify your competitors,
especially when you are writing a business plan. You need to know who you are trying to beat
so that you can position yourself properly. Business competitors are classified into the
following categories:
  Direct Competitors
o Companies that offer the same products or services and are competing for
the same potential market.
 Indirect Competitors
o Companies that offer alternative products and services other than what
you are selling.
 Substitute or New Entrants
o Competitors that compete for the financial resources of your customer but
not exactly offer your business products or services.
The clearest way to identify your competitors is to figure out who would supply your
customers to fill their needs if you were not around and what customers would to
solve their problems. Do not restrict your thinking only to companies similar to your
own, consider firms outside of the realm of possibility such as those who compete in
the industry from a corporate strategic viewpoint.

MARKETING
Advertising, public relations, and promotion activities are important aspects of
marketing even fi you do not have a formal background in marketing. These activities support
the marketing strategies of your business to build a solid brand. These will help you develop
long-term business goals and effective communication strategies. These are the key concepts
of marketing:

 Product Development
o It’s important to determine what the customers want. You must create
products that have unique benefits and features. The customers do not
only consider the physical components of the product but also the image
or brand of the product.
 Optimal Pricing
o Every business must research and test its pricing to determine at what
point customers will buy enough product to generate enough total profits
to justify the price charge. You must determine the cost of doing the
business. Make sure that the profit left is enough to make it all worthwhile.
 Distribution
o Different methods of distribution include wholesalers, retailers,
distributors, inside and field representatives, online selling, direct mail and
catalogs.
 Promotions
o It is essential to advertise and promote the company’s brand message and
sell the benefits of the product or service to succeed. It must be the right
product being sold at the right time, to the right customer, in the right
market. The big question you must answer for your customers is “Is this
product right for you?”
 LESSON 1: POTENTIAL CUSTOMER’S PROFILE, NEEDS, AND WANTS

CUSTOMER’S PROFILE
Understanding your customers helps you to sell more. It is easier to identify what new
products to sell and target them with appropriate offers if you know your customers and their
needs. Companies that sell to individual customers sometimes use customer surveys; it is
worth getting detailed feedback from them.
The right information will let you build up a useful profile of your customers. This
typically includes the following:

 Who they are –

o The age, gender of individual customers, or industry and business size for
corporate customers.
 What they think and believe –
o The things that interest the customers and their opinion of you and your
product.
 Their purchasing behavior –
o The products customers buy, where they buy them, when and how they
pay.
The profile of potential customers is a big help to determine how to approach them
separately. You can produce customized products or services for different groups. You
should regularly review your marketing strategy as market would also change.

NEEDS AND WANTS

You cannot manage a quality service organization unless you understand the nature
of what you are providing, fully realize what your customers want from you and how they
perceive you from the start.
You need to assess what they need from your product or service. Most customer
needs can be divided into four basic categories:

 The need to be understood –

o Customers need to feel that the message they are sending is being
correctly received and interpreted.
 The need to feel that they are heard –
o Customers need to feel that you are happy to see them and you are
listening to their feedbacks.
 The need to feel important –
o Customers like to feel important and special.
 The need for comfort –
o Customers need physical and psychological comfort.
MARKET ANALYSIS
In analyzing the market, you should narrow your target market, get your customer’s
profile and their needs and wants, with the data you gathered you would be able to come up
with a solution or product that fits the market your are targeting. With the same analysis, you
would be able to develop, price, distribute and promote your product/service efficiently. If
you understand your market, attracting customers and profit would be easy.