A market analysis is the basic structure for a marketing concept.
This analysis contains information that unites the customers, the industry, the competition, the sales department, and possible sales. However, it always only refers to a current status.
What is taken into account in a market analysis?
First of all, you should get an overview of the industry.
Is there any demand for my product at all?
Often one concentrates on other companies first. Which products are already on the market, do they have strengths or weaknesses, and how could these weaknesses be exploited. What can I still improve? Who are the pacesetters in the industry, or who has already established themselves? Who can you use for orientation?
Quality or quantity?
In addition, there is the question of whether to focus on quality or quantity. For example, in the case of so-called niche products, one concentrates more on quality, as this market has to be conquered first. In the case of fads that have a short life cycle, the focus is again on quantity. There is already a high demand here, so attempts are still being made to siphon off as much profit as possible.
The customers are also important because they are the buyers of my goods.
So you should ask yourself, for example: Where do I find most buyers? Who is my target group? What do customers expect from the product, and how do I meet their needs? How sensitive are they to prices? Do they react elastically or inelastically to price increases?
External influences are also taken into account. How stable is the market in terms of legal bases, or what is the current economic situation? Is it possible to make predictions for the future here?
What do I need for market analysis?
Market research is the basis for market analysis. It is divided into two sectors: Qualitative market research and quantitative market research. The contents of qualitative market research deal with trends, expectations, or even wishes; none of these facts are numerical.
The quantitative market analysis encompasses a larger framework of samples and deals with all numerical values, better known as “hard facts.”
Also Read: What Is FTP?