How To Do Correct Marketing Analysis?

TEAM STARTUPED 12 Jan 2022 . 2 min read

    A market analysis is a quantitative and qualitative assessment of a market. It looks into the size of the market both in volume and in value. It's your plan--and every plan is different--so you need to know as much as you can about your target market. Before stepping into the field you should know the market thoroughly and below stated are some of the areas you should look into-

    • Getting the Information
    The information sources that will help you conduct a market analysis are different for every business plan and not all the information you need is going to be publicly available, and you may have to settle for educated estimates. Sometimes you'll have to extrapolate information from different sources to get the information you're seeking. I've seen good market research come from telephone directories, catalogs, industry association statistical compilations, real estate information, and density maps.
    • Segmentation
    Always try to divide your target market into useful slices or segments. Dividing the market into segments helps the company address the more specific market needs, media, pricing patterns, and decision criteria in each of their different market segments. Segmentation helps you target specific people with specific messages and helps you focus on user needs. Knowing your market segments will help you make smart decisions when it comes to providing the products and services that will work best for them and for communicating with them.
    • Market Size and Growth
    You need to be able to measure and quantify your market. For example, if local homeowners are part of your target market, then you should be able to count them. You need to know whether you have 500 people in your market, or 200,000, or 2 billion. Be able to show what the total market is for your business. When it comes to market growth, you need to think about percentage change as a market forecast. Is the number of homeowners in your target market increasing or decreasing? By how much per year? Market forecasts start with the total number of possible purchasers in each market segment, then project percentage change over the next three to five years.
    • Market Trends
    You need to understand what's going on with your market. What do marketing trends and fashions you see having an influence on your market segments? If you're selling cars, for example, is there a trend that shows people responding to higher gasoline prices or environmental concerns. The questions that affect target markets will be different for every business. What's important is that as you create your business plan, you become aware of the market trends that affect your specific market.

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