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It is the act of gathering data that will allow your business to survive in the industry. Whether you're conducting a market analysis for a small business or a major corporation, know that it allows you to determine who your target market is and how to attract them. It is part of the industry analysis and global environmental analysis that identifies and analyses the businesses strengths, weaknesses, opportunities, and threats (SWOT).
Market analysis or market study is basically like coming up with a plan that presents various information regarding the market that you are operating in, but the difference, it deals with various factors. Most competitors or sales analyses are forward-looking, however, some try to explain or understand why something has happened. Creating a reliable market analysis document requires a lot of advanced knowledge and experience. To better help you with this task, we have collected some helpful tips on how to develop one.
In developing a well-rounded market analysis, you have to make use of reliable sources such as the internet. Since most sections found in a market analysis make use of raw, technical, and fundamental data, the internet is a great place to start. Research helpful supporting details that will help you uncover more information. You can even go as far as conducting a competitive analysis on your business rivals and use the data you've gathered to your advantage.
One of the most effective ways to measure opportunities among your target market is to look at your products and services through a purchaser's perspective. In this step, try to assess yourself with these questions, what is the problem that needs to be solved? how does the competition solve that problem? how will you solve the problem differently?
Doing a market analysis is an important part of a business plan, and in presenting it to your business plan audience, it would be helpful if you include a simple yet outlined executive summary of the market analysis section before you go deep into the details. In this way, your reader will have a better idea of what is going to come and help them zero in on the most important details quickly.
Information presented in market analysis is highly number-driven, such as statistics and metrics, and the easiest way to absorb and grasp this data and assess gaps is to present them visually. Make use of basic infographics, such as charts, graphs, and diagrams in presenting them. Infographics are a clear, effective, and artistic way of presenting information without losing the attention of your reader.
All the statistical data and information gathered in your market analysis should be related back to your company's products and services. In creating an outline for your target market needs, but focus on how you are uniquely positioned to fulfill those needs.