How to Make a Marketing Analysis in Word
A marketing analysis is a document that details the suitability of a specific market in a specific industry for business. This acts as a business plan that companies may use to make more informed financial decisions.
Just like other types of business documents, you may use various kinds of word processing and desktop publishing documents to make a marketing analysis. One of the most popular of these word processing software program is Microsoft Word.
A good market analysis should include the essential elements described below. Incorporate them into your own analysis reports and you will end up with a reliable marketing analysis document for your business soon.
1. Market Size
A cardinal component of a market analysis report is its current and projected market size. Knowing this figure for your intended market allows you to estimate the costs, profit margins, and sales volumes without a specific time frame. You may determine the marketing size through marketing research surveys, sample questionnaires, etc.
2. Market Trends
To make a marketing analysis report or marketing document more reliable, you need to include projections of the market’s movements over time. Factor in your business idea, product, or service into these projections and you will have a better idea if the business is worth the risk or not.
3. Market Growth Rate
A good marketing analysis or competitive analysis report should also contain an estimate of the market’s growth rate. This can be helpful in determining if you are already late in getting into the market. Or, if you still be setting a trend within the market. If you are new in an industry, you may study the growth rates of your prospective competitors. This way you can best predict the growth (or lack thereof) of your own products or services.
4. Market Profitability
No entrepreneur goes into business without thinking about its profitability. That is why a useful marketing analysis should also include a projection of the market’s profitability. Note that a market’s profitability is largely affected by consumer’s demands, the supply, any barrier to entry, the competitors, and the availability of other products. Keep these things in mind when making your analysis or evaluation report.
5. Distribution Channels
How you intend to distribute your products or services is another important component of a marketing analysis. For an effective marketing analysis document, you need to plan and watch out for new distribution means that will allow you to do business more efficiently. For example, you may explore drop shipping, network marketing, or direct selling according to your business needs.
7. Key Success Factors
Remember when we said that a marketing analysis also works as a business plan? Well, it is in the section for Key Success Factors that you make that possible. These success factors are the specific conditions or circumstances that, when addressed promptly and correctly, will help bring your business to new heights. In this section, you may write a detailed competition analysis, SWOT analysis, website analysis, market segmentation, and environmental analysis, among other things.