Many aren’t aware of the importance of market analysis and how it will help their business. In fact, marketing analysis is the deciding factor that predicts market trends and successful business.
If you still can’t understand what it is, don’t worry this blog will help you to know all about marketing analysis and how it helps your business needs.
What is Market Analysis?
The market analysis is the process of understanding the market which you are operating in and creating a business plan with your analysis. The marketing analysis helps you to create a strategy based on key factors of your business.
What Is SWOT:
SWOT is an acronym for Strength, weakness, opportunities and Threat. The strength and weakness of your company help you to create a strategy based on it. You can also use situation factors like opportunities and threats to strategies your business plan.
Dimensions Of Marketing Analysis:
By understanding the dimensions of marketing analysis, you will get a clear outline about how to create a marketing analysis of your own.
The industry overview is all about gaining knowledge about the industry such as size, trends and projected growth.
- Helps you to understand how much demand your product has.
- How much competition is there for your business.
- How much growth you can expect in your target market.
The market trend helps you to know about the latest trends, people behaviour and what are the things people like to spend. The typical marketer should try to utilize as much as can with the help of market trend. Change in market trends provides you with both opportunity and threat.
The market profitability helps you to understand how much profit you can earn from a business. Here are some few things to calculate market profitability like buyer power, distributor power, barriers to entry and so on.
The distribution channel helps you to reach your product to your customer. It is important to analyze whether an old channel is good enough or even you can think about online marketing channels.
Industry Cost Structure:
The industry cost structure is nothing but analyzing how much it costs when your products reach your customer. Most companies try their best to reduce industry cost structure to make a huge profit without changing the market price.
The target market is one through which you can find out who is your ideal customer. Here are some factors in the target market.
The Market Size is nothing but a potential customer for your target product and it is measured in numbers. Here are some helpful metrics.
TAM (Total Available Market) = 15% of total population (approx)
SAM (Segmented Addressable Market) = 33% pf TAM or 5% of total population.
SOM (Share Of Market) = 5% of TAM or 16% of SAM or 1% of total population.
The demographics describe age, gender, education and more about your customer.
The location describes where your customer belongs or located in the physical world.
The Psychographics describes the likes and dislikes of your customer.
The behaviour is through which you can what are things or products your customer like similar to yours.
The trends provide details about the latest trend in your target market or industry.
What Is Competition Analysis?
The competitor analysis helps you to find the weakness of your competitors which you can take advantage of your business. Without knowing your competition and competitors, it is difficult for a business to succeed.
What You Should Know About Competitors Analysis?
Your direct competition is nothing but companies that are offering similar products and service like you.
The indirect competitors are products and services which provide similar to your products. You can assume indirect competition as an alternative solution to what you offer.
The difference between your competitor’s product and your products help you to succeed in your business. The unique things about your business are like location, timing, price, type of service and so on.
Think about the barrier you have to prevent from new companies that are competing with your business. The barrier may be like the pattern for an idea or maybe the location of access.
Note: You can know about your competitors by asking for details from your buyer.
Pricing & Forecast:
Think about a reasonable price to sell your products which are more than what it cost to build the products. The price of the product must send a message to your customers. Customers always link high price with high quality but there is always a chance for your competitors to beat you with low price.
It is important to know how many shares of the market that you can acquire. The forecast helps you to know how much products you can sell with the help of industry analysis. You can use the forecast as a goal to be achieved.
Now, you know about the importance of marketing analysis and how it will help your business. If you want to know more about related topics then check out our blog about digital marketing.