In order to achieve important milestones and obtain considerable profits with an independent activity, it is necessary to carry out a market analysis beforehand.
The development of successful business strategies is often focused solely on the authenticity of a market idea: an innovative vision is not sufficient, however, in order to achieve significant company goals, it is essential to carry out a thorough market analysis.
What is a market analysis?
The market analysis is a specific analytical research that companies use to study the economic context in which they operate, the sector of reference of the activity and the behavior of their target audience. A market analysis carried out correctly allows commercial entities to become aware of the profit opportunities or risk factors present in a given market, to develop a winning business plan and to elaborate qualified marketing strategies.
The most functional and most used methodology to carry out market analysis involves the integration between quantitative approach and qualitative approach: the market survey is a clear example of effective collaboration between statistical and analytical tools and psychological and sociological disciplines.
Market analysis: When is it necessary?
Carrying out a market survey is particularly important during the start-up phase: for a new company with the aim of positively positioning itself in the current market, it is essential to identify potential income opportunities and minimize risk factors, objectives reachable only by carrying out a careful market analysis.
The current market, being characterized by the immediacy of communications, is constantly changing: even for already established companies it is essential to periodically carry out market analysis in order to maintain its positive position within the sector by foreseeing possible factors of change in the market.
A Nielsen survey states that the successful launch of a new product on the market generates an approximate turnover of $160,000 for the company in the first year. Effective planning of an innovative service offer is therefore an indispensable activity to achieve significant profits: a detailed and adequately detailed market analysis can be fundamental to identify the guidelines of a new successful advertising campaign as it analyzes the needs of consumers and the characteristics of the market.
How to do a market analysis?
Here are some useful tips to structure a market survey that can optimize the results of your business …
1) Clarify the objective of the market survey
To carry out a winning market analysis it is essential to clarify initially what the purpose of the survey is: a business search aimed at selecting new areas of profit is, in fact, structured differently from an analysis with an advertising purpose related to user behavior.
2) Analyze the reference market
Determining the nature and extent of the market in which you want to perform the analysis is essential to use all your resources only in useful research. The parameters to be considered are geographical, demographic and relative to the target audience.
3) Select interesting market aspects
The areas of the market to be considered in-depth depend strictly on the purpose of the survey itself: if you want to advertise a new product it is necessary to conduct a sociological research about the behavior and needs of consumers, if the goal instead, identifying new commercial markets to grow its business is essential to gather analytical information that can convince investors to finance the project.
4) Define the target and the communication channels
To structure an effective business plan it is essential to identify the target audience: the market analysis, through the use of surveys, is useful for perceiving and studying the behavior of consumers and consequently for select which is the optimal target for your services. To determine the type of users to turn to, it is essential to obtain concrete and truthful feedback by sharing surveys and questionnaires within preferential communication platforms.
5) Determine which type of survey to use
The surveys to perform market analysis are placed within two macro categories: interviews, characterized by feedback recorded by the interviewer, and questionnaires, which provide answers annotated independently by the consumer. Considering the type of survey selected it is easy to elaborate beforehand lists of specific questions to be shared with consumers.
6) Rely on an online survey platform
There are online platforms and software that can organize market analyzes and their results in an effective and economic way. It is important to choose an authoritative and reliable tool, the most used are: SurveyMonkey, Zoomerang and SurveyGizmo.
7) Interpret the search results
After completing a business analysis, you need to analyze the market data and set up your marketing and communication strategies based on the results themselves: considering what consumers appreciate can help a product to positively position itself on the market and expanding its business in areas particularly rich in demand can reduce business risks.
Market analysis: Why is it important for your business?
The market analysis is an indispensable tool to carry out some business activities necessary in order to achieve significant profits …
Selection of new business opportunities
A market analysis, through the in-depth study on the generic consumer demand, is able to suggest to the company which are the possible sectors in which to invest its resources.
Creation of the company business plan
Analyzing all the potentials of the reference market is essential for the creation of the business plan and therefore for the planning of the strategies and activities of the company.
Identification of possible risk factors
A detailed research related to its sector and the current market trend in which the company operates is useful for identifying potential risk factors: a reality aware of the possible economic dangers has the advantage in planning marketing strategies to avoid them.
Forecast of potential future changes
The market analysis allows the company to identify possible future factors of change in order to be able to respond positively to the new needs of its target audience.
Determination of the price of products and services
The market survey allows the company to optimally determine the prices of its services on the market: using surveys and interviews it is, in fact, possible to identify the value perceived concretely by consumers of a given product.
By conducting market research it is possible to identify the mistakes made by the companies operating in their sector and to discover how to differentiate themselves in an innovative way from their competitors.
Evaluation of Customer Satisfaction
Market analysis is a fundamental tool for evaluating the purchasing experience of its customers and developing marketing strategies aimed at their loyalty.
Optimization of communication strategies
By carrying out a market analysis it is possible to evaluate the effectiveness of its business activities and to seek innovative solutions for a constant optimization of communication and marketing strategies.
Do you want to grow your business and improve your business results?
There are many areas in our life that we should improve to g...
I always thought that to create your start-up, you always ha...
The definition of USP is unique selling proposition or uniqu...
Relatively indestructible goods or consignments that cannot ...
There are situations that are innocent at first glance, but ...
Dependable tech support is an essential component for ju...
HR challenges. This word scares you? No, especially not you,...
Perhaps in a business, there is a strategy that seems effect...