IV. Market Information
Market Analysis for Brands
Market now has multiple meanings. The original one signifies the place for
people to buy and sell products. But its meaning has changed now. It refers to all
business transactions presently. We have too many customers whose demands and
habits are dissimilar. That’s why every single brand has to get the most favorable
market information for surviving in marketing.
Market segmentation is an initial step to grasp market information. Numerous
clients have various gateways to shop; therefore, two analysis, “Regional Analysis 1”,
and “Demographic Analysis2,” are common market analysis. Regional Analysis is
related to location. Myriads of brands localize their sales and advertisements for
adapting needs for the inhabitants of various areas. For example, if department stores
are close to school districts, shoe brands will sell a large number of young style shoes
for students. In terms of Demographic Analysis, we can divide customers into several
target markets on the basis of salaries, ages, genders, family status, social position,
education, profession and so on. For instance, at the present time, most females are
career women. These matrons are facing double pressures from economy and their
families. For this reason, a famous shoe brand in Taiwan created comfortable high
1
Regional Science :
http://www.springer.com/economics/regional+science/book/978-3-7908-2085-0
2
About.com : http://biztaxlaw.about.com/od/glossaryd/a/demographics.htm
heels shoes with air cushion for bodily relaxation.
The major thing for brands to do after market segmentation is to produce
shoppers’ ideal products, i.e. the products clients want to have. A good market
segmentation is done according to customers’ needs to assorted shoes. An excellent
shoe brand from America specializes in making multi-style and elegant super high
heels for confident, active, extrovert women who have high concept of money. Such a
strategy focuses on clients’ need, so it is also called psychological analysis.
The best formula to comprehend markets is “PEST Analysis 3 (on Future
Tendency).” If brands want to manage sustainably, they should know the future
development and market forecast. However, they are not seers, so they can’t just have
a dream to project what will happen tomorrow. Therefore, to understand the essential
points of “PEST Analysis” for brands is definitely necessary.
P = Political Environment – Observing political environment embraces the policy of
finance, situation, and industry.
E = Economic Environment – Observing economic environment that comprises
inflation, investment index, and work status.
S = Social Environment – Observing social environment including the change of
lifestyles, customers’ trend, and population statistics.
3
The definitions of PEST Analysis are quoted from
http://zh.wikipedia.org/wiki/PEST%E5%88%86%E6%9E%90
T = Technology Environment – Observing technology environment involving the
manufactures of production, technique, and materials,
These units can help a brand to know the market tendency in the future, and seek for
any expandable possibilities and latent juncture to mold whole markets.