What exactly is marketing analysis?
A market analysis is a comprehensive study of a market segment within a given business sector. You are tasked with investigating the market’s inner workings, such as its size and value, potential customers, buying habits, level of competition, and many other factors.
How to perform market research
Although doing a marketing study is not a difficult task, it does necessitate extensive research, so be prepared to commit a significant amount of time to the process.
The steps in performing a market analysis are as follows:
1. Establish your goal
You can conduct a market study for a variety of reasons, such as appraising your competition or learning about a new business. Whatever your reason is, it is vital to develop it as soon as possible in order to stay focused throughout the process. Begin by establishing whether your aim is external, such as asking for a company loan, or internal, such as increasing cash flow or improving business operations. Your aim will influence the extent and depth of your investigation.
2. Investigate the market situation
Make a detailed map of how your industry is performing right now. Include the industry’s apparent direction, and back up your judgments with a plethora of facts and indicators, such as size, trends, and expected growth. You can also do a comparative market analysis to evaluate your competitive edge in your specific market.
3. Recognize your target customer
Trying to attract everyone to your goods would be a waste of time because not everyone would be a buyer. Instead, conduct a target market study to establish who is most likely to want your product and focus your efforts there. You should be aware of your market’s size, your target audience’s origins, and any circumstances that may influence their purchase behavior. Consider the following demographic factors to do so:
- Education
- Interests
- Location
- Age
- Gender
- Needs
- Occupation
To use as a guide for your marketing efforts, you can think about developing a customer profile or persona throughout your study that represents your ideal customer.
4. Acknowledge the competition
To succeed, you must understand your competitors thoroughly, including their market saturation, how they vary from you, and their advantages and disadvantages in the marketplace. Make a list of all of your main competitors, then go over it and complete a SWOT (strengths, weaknesses, opportunities, and threats) analysis on each one. What sets that company apart from you? Why would a customer choose that business over yours? Consider yourself the client.
Next, arrange your list of competitors in terms of the level of threat they pose to your business, and create a timetable for doing continuous SWOT analyses of your most formidable competitors.
5. Work on your analysis
After you’ve completed your market analysis, it’s time to put it to use. Look for possibilities to use your research and findings to improve your firm. Have you observed methods implemented by other businesses that you would like to use on your own? Is it possible to improve the effectiveness of your marketing strategies?
If you did your research for external purposes, consolidate your findings and research into an easy-to-read and understandable report to share with lenders.
Keep all of your data and research for future analysis, and consider creating a yearly calendar reminder to stay on top of your sector.
Frequently asked questions :
What should you include in a market analysis?
Your market analysis should include an overview of your industry, a look at your target market, a study of your competitors, your own company estimates, and any regulations you’ll need to obey.
Why is market analysis necessary?
The market study will provide you with important knowledge regarding your business and the environment in which it operates. It can give you insight into the perceptions of your company held by the clients and consumers you are aiming to attract.
What is market analysis in business?
A market analysis is a comprehensive evaluation of a market in a particular business sector. You will analyze the various moving parts of your market, such as its size and worth, possible consumer groups, purchasing habits, level of competition, and more.
