Market analysis involves conducting a quantitative as well as qualitative assessment of a market in order to understand the tangible and intangible factors at play in an industry. It looks at the size of the market, various customer segments, competition, and the economic environment.
Companies often turn to third-party market research providers to perform market analysis.
The main objective of market analysis is to understand a market and to see if the market is large enough to build a sustainable business.
Market analysis involves answering several questions, including:
- Target market, what is its size, sales figures, consumer spending figures, is the market growing or contracting, what is the forecast for the market??
- Who is the target customer? demographics and segmentation?
- What is the competitor environment (competition)?
- Barriers to Entry, what are the potential disruptors?
- Regulation
While conducting market analysis, you’re required to provide some relevant information on the market in which the company operates within such as:
- Market trends- market definition, mention market size and growth over last 3yaers and projected growth between 3 to 5 years. mention market changes, market share, other trends
- Product range – Include Product mix, product categories within the market across companies.
- Consumers /customers types, – you can look at Customer Characteristics and needs influencing the market, cultural elements, social elements, personal elements
Look at answering the following questions while doing Consumer Behaviour Analysis:
- Who buys our products or services?
- Who makes the decision to buy the products?
- Who Influences the decision to buy the product?
- How is the Purchase decision made? Who assumes what role?
- What does the consumer buy? What needs must be satisfied?
- Why do customers buy a particular brand?
- Where do they go or look to buy the particular product or services?
- Where do they buy? Any seasonality factors?
- How is our product perceived by the consumers?
- What are the customers’ attitude towards our products?
- What social factors might influence the purchase decision?
- Do customers’ lifestyle influence their decision?
- How do personal or demographic factors influence purchase decisions?
Market research databases like Mintel, Passport, Marketline Advantage are popular market research resources for management students to carry our Market Analysis for their project work.
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