Market Analysis
Overview
Whether you are starting a new business or launching a new product, conducting a marketing analysis is the first step in determining if there is a need or audience for your idea. Knowing the market's needs and how it is currently serviced provides you with key information that is essential in developing your product/service and marketing plan. Too often, businesses spend thousands of dollars launching a "new" idea with a limited market because of competition. The owner is forced to reevaluate his strategy and determine if there is room for another player.
Although the quality of the product is critical, your development of the best product on the market will not necessarily correlate with the most sales. Up to 50 percent of a product's price can be for marketing. The company who wins the marketing game generally will capture the larger share of the market. For related information, see Identify Your Target Market.
Conducting a market analysis will help you: 1. Prepare to enter a new market 2. Launch a new product/service 3. Start a new business
At the completion of this exercise, you should be able to: • Explain the concepts of a marketing analysis • Determine if there is a need for your idea or product/service • Identify a new market • Analyze your current market • Gain a competitive advantage • Begin to establish a marketing plan
Outline:
I. Marketing Analysis - What Is It? Why Should You Do It? II. The Complete Process: A. Defining the Problem B. Analysis of the Situation C. Obtaining Data That Is Specific to the Problem D. Data Analysis and Interpretation E. Fostering Ideas and Problem Solving F. Marketing Plan III. Resources
I. Marketing Analysis - What Is It? Why Should You Do It?
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