If you are starting a new business or reviewing current business practices, a marketing analysis is necessary. After all, not having a proper assessment of your market will make it difficult to achieve the business goals you set. A marketing analysis includes everything you should know about your industry, customers, and competitors. This process can be overwhelming, so below we share our tips on how to write a marketing analysis for your business.
A marketing analysis contains an overview of the industry or market in which your business operates. This can help you to assess the attractiveness of the market, discover growth opportunities, develop strategies to overcome challenges, and better position your business. Furthermore, a marketing analysis is helpful for launching new products or diversifying into new industries. Within a detailed marketing analysis, you will discover insights into:
A marketing analysis provides a core understanding of your market and helps your business take control and succeed. The components you should include are:
When preparing your marketing analysis you should conduct in-depth research into the current state of the industry. Consider the size of the industry, potential growth, emerging trends, and future sustainability predictions. Use reliable sources like trade associations, the chamber of commerce, and government agencies to find the information.
Within this section, you should narrow down your data from the above section to focus on your specific market. Digging into the specifics allows you to find your ideal target audience, and more accurately predict how viable the market is. These are important details that will impact your marketing strategies.
Once you understand your market, it is time to investigate the trends within the industry. Focus on how the market started, its evolution, and its future growth. Trends to watch out for and track include changes in consumer preferences, technological advancements, demand for specific products, pricing changes, and supplier changes. The best way to find this information is through industry publications, the US Census Business Data, research centers, and Think with Google. Consider how your offering can fit into these trends, and adapt for the future.
As you research your competitors, take note of who they are, what they offer, the product quality, and why they stand out in the market. Competitor analysis gives you a clearer idea of what your business is up against. It also helps you to identify aspects of how your business can measure up and compete.
Consider what key factors can help your business to succeed and compete. Consider resources, management capabilities, operational strategies, marketing strategies, financing, strengths and weaknesses. Then, evaluate these key factors to grasp further detail on what is required to help your business be successful in the market.
Financial forecasts, future trends, and future products are crucial when projecting where you will land in the market. Focus on specific numbers like market segments, market size, projected sales, average purchase amounts, market shares, pricing structure, and gross and net margins. Collect data from reliable sources to predict these numbers to avoid miscalculations.
Outside factors influence your business, whether they are economic, social, political, legal, and technological. These are all factors you have little to no control over but are important to include in your marketing analysis as they will impact your consumers. Furthermore, they can impact your business processes. Research the potential impact these factors could have on your business and identify solutions.
As a business, one of the biggest potential setbacks is a lack of understanding of the industry and target market. A marketing analysis is useful to identify the crucial market conditions, competitors, and consumer behavior that may impact your business. Furthermore, it is an ongoing process that you can use to optimize your business marketing.
