Primary Market Models

The market where companies issue new security that is not traded on any exchange is known as the primary market model. These securities are also offered to raise funds in order to achieve long term goals of a company. This primary market is also known as NIM (New Issue Market). These securities are directly issued by the companies for the investors. IPO or FPO of the company has the responsibility to issue these securities for the investors. The companies adopt various ways to raise funds for the general public. Some of these ways are explained below by the writers of dissertation proposal writing service;

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  • Public issue

The companies can easily issue securities on the basis of public issues. After issuing these securities, the companies can also raise funds with the help of the IPO. It is also necessary for the company to list all the securities on the stock exchange for the purpose of trading.

  • Rights issue

Sometimes, there is a possibility that a company wants to raise more capital or funds from the existing shareholders. Under such a situation, it is necessary for this company to provide some offers to the shareholders. For example, they should provide an offer that they will get some special discounts and they will also get these shares on a pro-rata basis. This process is known as a rights issue.

  • Preferential allotment

There are some companies that are listed and if these companies are providing offers to some individuals, this thing is known as a preferential allotment. Under such a situation, it is necessary for a company to ensure the shareholders that these offers are not dependent on any mechanism.

After clearly understanding some essential ways to raise funds for a company, the next step is to prepare primary market models. Some essential tips to prepare primary market models are explained below;

  • Prepare and create a primary market model

If you are going to create a primary market model alone, you are in dreams. Therefore, you should try to work in a group and try to involve all the members of the group in this activity. If your primary market plan has lots of perspectives for the shareholders, your primary market plan will be most actionable and robust. While creating a primary market plan, you should make sure that this plan should be relevant to the vision statement of your company.

  • Build a go-to-market model

A go-to-market model will ensure that your new product is prepared according to the needs of the customers. Moreover, a go-to-market model will also support the products after the launching. While building a go-to-market model, you should keep in mind some essential things like target market segments, value proposition and offerings.

  • Create your value proposition

The main aim of building a primary market model is to generate funds for a company. Therefore, you should try to create a simple and direct statement for your value proposition. For this reason, you should get the answers to the following questions;

  1. How to identify your company in the market?
  2. How to distinguish your offerings from the competitors?
  • Develop a distribution strategy

After creating the best products, your company should also have an impressive distributive strategy. In order to develop an impressive distributive strategy for your company, you should try to get the answers to the following questions;

  1. Where will your shareholders go in order to purchase your offerings?
  2. How will you enter into the market?
  3. How will you provide support to the shareholders and your customers?
  • Execute your marketing model

After building the market plan, it is also necessary for you to execute this market plan. While executing your marketing model, you will have to follow three strategies. First of all, you should try to create awareness for your brands. You can easily create awareness for your brands just either by creating an official colour or by creating a fancy logo. Secondly, you should try to build a marketing calendar. A marketing calendar is the best way to organize all the events of your company. Thirdly, you will have to create a sales kit. This sales kit is the best way to engage the customers in your products.

Conclusion

A primary market model is the best way to raise funds for your company. Some essential ways to raise funds for your company are public issues, rights issues and preferential issues. You can also create a primary market model by devising a marketing model strategy, by building a go-to marketing strategy, by developing a distribution strategy and by executing your marketing model.

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