Marketing analysis is a thorough qualitative and quantitative assessment of the current market for a relevant product or service.
Analyzing marketing activity will help you understand the size and value of the market, potential customer segments and their buying patterns, the position of competitors, and the overall economic environment, including barriers to entry and industry regulations.
What is the analysis of marketing activity and what tasks does it perform?
The main objectives of the analysis of marketing activities are:
1) Finding new clients
To identify potential new customers, you must first understand the profile of a potential customer. It is also necessary to know the main demographic indicators of the preferences of the target audience, their needs and standard of living. All this data will help to create a portrait of the buyer of your product.
2) Study of the existing consumer audience
This point of analysis can be revealed through consumer research, which should answer the following questions:
- Why do customers prefer your company's products over competitors' products and services?
- How do people use your products?
- How do products solve the problem, of consumer demands?
- Who or what influences their buying decision?
- What are the preferences and interests of customers?
Understanding how existing customers use your products, as well as what problems products solve, will help the company improve their quality, as well as identify opportunities for additional sales with existing audiences, and choose a promotion method.
3) Setting realistic goals for your business.
Setting achievable and realistic goals for business improvement and growth.
4) Develop new and effective marketing strategies
Market research data will help you make better decisions. For example, in relation to pricing, distribution channels, marketing tools, or identifying opportunities to introduce a new product or service.
5) Explore Expansion Options
Market research will help you identify areas for possible business expansion. Given that it provides an opportunity to test markets to determine if there is room for a new product or service. It is also possible to conduct research to find the best place to open a new store or form a new pricing policy. Marketing research can help open up new, emerging markets with vacant niches. For example, you can identify changing market trends due to new housing developments, higher education levels, or other changes that will open up new opportunities for your business.
Market research is not just for start-ups. Companies of all shapes, sizes, scales, industries and experience levels can benefit from market research. Research can help you learn about new and existing customers, identify problems and solve them, and even help you explore new opportunities that pave the way for business growth.
Main stages of analysis
Carrying out a market analysis is a complex iterative process that includes voluminous and complex stages of work, such as market and niche research, competitor analysis, and development of a marketing strategy. Now we will analyze the main steps of the analysis, you can read them in more detail in our other articles:
- Determine the purpose of the study
As with all business development endeavors, it is important to understand why you are doing the analysis at all. Perhaps you're looking to familiarize yourself with industry regulations, or perhaps you're wondering how your business compares to other companies.
- Define your target audience and competitors
Market analysis should focus on two main groups: buyers and competitors. You need to know who your customers are, as well as understand their buying habits and how much they are willing to pay. When it comes to competitors, you need to consider who they are and understand their challenges and successes so that the company can tactfully compete and stand out from them.
- Collect and analyze market data
There are many ways to gather market data, from government statistical sources, and local business websites of companies or analysts, to conducting complex interview sessions with consumers and surveys.
After analyzing the data obtained, aspects for improving the business and better interaction with consumers of products or services will be visible.