A market analysis studies the attractiveness and the dynamics of a special market within a special industry. It is part of the industry analysis and thus in turn of the global environmental analysis. Through all of these analyses, the strengths, weaknesses, opportunities and threats of a company can be identified.
Successful businesses typically conduct a marketing analysis before they introduce a new product or service. Conducting research typically involves reviewing industry analyst information, getting expert opinions and contacting customers for their feedback. Write a comprehensive market analysis report to help your company’s marketing, sales and finance teams forecast revenue and gross margin.
List detailed information about your potential customers, such as age, location, gender and other relevant details. Describe how you plan to market your product to them in the current economic environment. Review industry journals, publications and websites to get insight into how to market to these customers for your industry.
Run focus groups, conduct interviews or create a survey to get input from your current customers, if applicable, regarding your ideas. Identify ways to reach new customers, such as using social media technology and mobile technology. New marketing tactics, such as text messages or mobile phone applications, may allow your business to succeed where previous attempts failed.
Get expert advice. Read competitive reports from trade and industry sources, such as Forrester Research, Gartner Research or Gale Research. Attend trade shows, conventions and other events to get detailed reports and studies describing your industry. Use data from the U.S. Department of Commerce to identify the general economic outlook.
Estimate the size of the target market. Determine if the industry is stable, growing or volatile. Determine what customers might be willing to pay for your product or service. List features that differentiate your products or services from your competitor’s products or services. Identify current customer requirements and project future needs.
Identify distribution channels for your product or service. Pinpoint how you can achieve a competitive advantage. Describe how you plan to leverage current customer testimonials to sell new products.
Establish a measurable marketing goal. For example, aspire to increase sales to current customers by 2 percent within the next six months and engage two new customers each month. Describe how you plan to track and monitor your progress.
When assessing the size of the market, your approach will depend on the type of business you are selling to investors. If your business plan is for a small shop or a restaurant then you need to take a local approach and try to assess the market around your shop. If you are writing a business plan for a restaurant chain then you need to assess the market a national level.
Depending on your market you might also want to slice it into different segments. This is especially relevant if you or your competitors focus only on certain segments.