Marketing Analysis A marketing analysis is a study of the dynamism of the market. It is the attractiveness of a special market in a specific industry. Marketing analysis is basically a business plan that presents information regarding the market in which you are operating in. It deals with various factors. What is the use? A marketing analysis is done so that you can formulate a strategy on how to run your business. By taking into consideration certain factors, you will know how to operate your business. The main focus of your market analysis determine the size growth potential Risks Trends seasonality other factors regarding the market. Investors and lending providers want to know the exact or close to exact size of your market. A research on the market is therefore important before developing any final marketing oriented plans or strategies. Is there a market for your product or service offering? Who are the customers and what are their needs and preferences? Do you have any orders on hand? What about signed contracts to deliver? What market share are you going to strive to get? You should also take the following into consideration: The identification of market segments The needs and preferences of each market segment Market segment attractiveness (the process of targeting) The selection of a suitable target market Market Segmentation Market segmentation helps you select a market that your business can best serve The identification of market segments encompasses subdividing a total market into distinct subgroups of consumers, where any subgroup can be selected as a target market to be met with a distinct marketing mix of the 4 p's (product, promotion, price and place) The primary market segmentation bases include the following: Demographic segmentation Geographic segmentation Psychographic segmentation Behavioral segmentation Corporate or individual Demographic segmentation involves assessing the needs and preferences and other factors using criteria such as age, income, status, education, gender and other factors. Geographic segmentation assess the needs and preferences of people with reference to their geographic location. Psychographic segmentation takes into account factors such as personality, the attitudes and tastes of a segment within a given population. Factors such as lifestyle or how people spend their money are assessed. Behavioral segmentation looks at factors such as the benefits sought by people, purchase occasions and other behavioral patterns. You may also segment your market in such a way that you discuss the needs and preferences of the corporate and individual market separately Market Attractiveness Assessment The process or targeting The process of targeting is mainly based on deciding which of the identified segments the business should select and base its marketing efforts on As a guideline, prior to targeting, you must ensure that the identified segments are: Measurable: a segment must be quantifiable or in essence the segment must not be elusive or difficult to measure Accessible: meaning that the segment must be easily reachable in terms of activities such as promotion and distribution Substantial: Is the segment substantially lucrative? Does the the potential revenue from the segment outweigh the input in terms of the effort to be made by the business Access the attractiveness of each identified segments by taking the following factors into consideration: Segment size Segment growth rate Segment growth potential Segment profitability Market risk Competition Barriers of entry Target Market On completion of the market segment attractiveness part, state the market segment you wish to target as well as your reasons for choosing this target market. On completion of the market segment attractiveness part, state the market segment you wish to target as well as your reasons for choosing this target market. Corporate or individual Geographic segments Demographics and social segmentation Urban or rural Psychographics Behavioral Competition Analysis Assessing and analyzing the competition is important as you will most likely compete for market share Assessing and analyzing the competition is important as you will most likely compete for market share Who are your competitors? What businesses are offering a similar product or service offering to your business and serve the same market that you intend to serve or are already serving (in the case of an existing business)? What are the strong points and weak points with regard to your competitors? Where are your competitors located? Understanding your competitors will enable you to devise effective competitive strategies that will help you capture more market share and ultimately make more sales and profits. Drive or walk around and see what your competitors are doing check their business websites note down and assess the prices of their products and service offerings and assess what factors make them unique or position them better Your competition analysis should ideally take the following into consideration: Direct competition Indirect competition Threat from new entrants or future competitors Threat from customers Threat from suppliers Threat from substitutes Intensity of rivalry Competitive Strategies How will you combat your competition? What competitive strategies will you adopt? Address this part in detail in your Market and Sales plan or strategy. Cost leadership Product Differentiation Broad market or narrow market focus Customer intimacy Product superiority Process efficiency Customer Value Proposition What value are you going to provide? The following factors could be taken into account. Again, address this part in detail in the Marketing and Sales plan. The following factors could be taken into account. Again, address this part in detail in the Marketing and Sales plan. Market positioning Branding and image Products or services Pricing Promotion Place Packaging People Processes
