How To Perform a Market Analysis
What is a Market Analysis
Market analysis is a technique used to calculate the size, growth rate, and various trends of a market, industry, and/or demographic. Market Analysis is a critical component that helps organizations understand the current state of the market, industry, and/or demographic as well as identify opportunities and threats, and make diligent decisions about how to position the image, product, and/or service. A data-driven market analysis will give you insights into customer demand, pricing strategies, and growth opportunities. Market analysis typically involves the following core components:
Industry analysis: This core component reviews the overall size and growth rate of the market, industry, and/or demographic as well as key trends and things that are driving the industry forward or backward.
Competitor analysis: This core component scrutinizes the organizations that are currently operating in the market and may be a competitor. The review will then evaluate the strengths, weaknesses, and market share of these competitors.
Client and Prospective Client analysis: This component looks at the target audience for the image, product, and/or service, and evaluates the needs, preferences, and behaviors of the target demographic.
Distribution analysis: This core component reviews the channels through which the image, product, and/or service is distributed, and assesses their effectiveness and potential for growth.
SWOT analysis: An acronym for Strengths, Weaknesses, Opportunities, and Threats, SWOT helps organizations identify their internal strengths and weaknesses and external opportunities and threats, which may help to identify potential challenges and opportunities for growth.
How Do I Conduct a Market Analysis
If you’re reading this, we commend you, but it also means you’re looking to scale your business or taking marketing seriously. First, define your market and determine the industry and target customers (i.e., consumers or businesses). Next, research industry trends so you understand the size, growth, and competitors. Doing so will also give you an idea as to how much revenue may be generated the first five years and whether the service or product is worth launching. If it’s worth launching, you’ll want to dig deeper into your competitors, target customers, and target market size. What makes your competitors unique and what’s their marketing strategy? What drives your target customers and where do they live, work, and play? What does my target market look like in groups? For example, what’s the total number of people that may purchase, the segment of people that will actually purchase, and the percentage of the segment of people that you believe you can get to purchase. Note: this is your TAM, SAM, and SOM. Thrilling stuff, I know. Lastly, understand your competitive advantage and create or verify your market strategy. This will ensure your marketing strategy is targeted and generates revenue. We’re not hear to worry about colors. That’s what the graphics does and we’re thankful for them.
As always, market analysis is an ongoing process and should be reevaluated every year. The reason for annual review is because markets, industries, and/or demographics are dynamic and in a constant state of change or evolution. Businesses should regularly review and update their market analysis to stay informed about changes in the market and adapt their marketing and business strategies accordingly.
Marketing That Generates Revenue Starts With Good Data
Market analysis is typically combined with marketing analysis to develop a marketing strategy that is sensible and relevant to the specific market and target audience. Such analysis may also be used to make decisions about product development, product pricing, service rates, distribution channels, and other aspects of the business plan.
The Method Marketing offers strategic marketing services to boost your business. Our only priority is exceeding your expectations and improving your bottom line. If you want your clients and prospects to have a meaningful and seamless journey throughout the sales cycle, then give us a call. Contact The Method Marketing to discuss market analysis or have us do one for you at 216-239-0631 or info@TheMethodMarketing.com.
