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What is market analysis?
Market analysis provides you with information about industries, customers, competitors and other aspects of the market. You can also define the relationship between supply and demand for a particular product or service. Based on these findings, you make more informed decisions about possible marketing strategies.
What is market analysis? How suitable is a particular market for your offer? Market analysis answers this important question. Each market participant, be it a company, a retailer or a private buyer, can conduct a market analysis. In any case, it serves as a basis for decision-making. Suppliers and consumers collect and evaluate information to make buying or selling decisions. You can also evaluate your current market or look at new markets. Market analysis is part of market research and an important part of a business plan. In doing so, business founders document their business idea in writing. Market analysis examines a given market systematically. The results obtained will allow companies to identify the opportunities and risks of the market. The definition of the target group forms the basis for market analysis. To conduct market analysis, you need sound information and specialists who know the intricacies of this moment. As a rule, small businesses order this service from specialists, who will conduct the necessary research to analyze the market. Market analysis can be performed using various data collection methods. A distinction is made here between primary and secondary research.
In primary research, the target market is surveyed to collect new data. This allows you to specifically collect the data you need for market analysis. Secondary research involves the use of data from previous studies.
Differences between analysis and market research
Market research means the systematic study of a particular market. Thus, research provides information that allows you to choose the right marketing tool. Unlike market research, market analysis focuses on the analysis of a particular market. The purpose of market analysis is to identify the most important characteristics of the market and determine the structure of the market at a particular point in time.
Market structure refers to the structure of a particular market. This is the result of the interaction of suppliers and buyers and can be determined by various criteria. These criteria are different characteristics of the market. These include size and cost, as well as the number of suppliers, consumer buying behavior, or even growth projections.
Why do you need market analysis?
If you want to be successful with your business, you need to prepare a market analysis. Because a thorough market analysis forms the basis for developing a marketing strategy and specific marketing actions. Other reasons why market analysis is important:
• With market analysis, you can prove the effectiveness of your business idea with numbers, data, and facts.
• You can determine market potential at an early stage and avoid wrong decisions.
• Market analysis shows which competitors' products are already on the market.
• With the help of market analysis, you can determine the barrier to entry into the market and evaluate the attractiveness of the market. Competitive analysis looks at individual factors that are important to the market. It analyzes and describes the main characteristics of the market. Urban Consult MK experts will help you answer questions such as
• How important is your product or service to your target group?
• Bargaining power of suppliers. Suppliers have especially high bargaining power if the number of possible suppliers is limited. How can you respond to price increases?
• Threats of substitute products. Are there alternatives for your product or service? Could new innovations threaten the spread of your offering?
• Threats of new competitors and barriers to market entry. If the market is especially attractive, then new competitors will enter it. What are the market entry barriers for potential competitors? For example, high investment costs for a product or service can be a barrier to market entry. Market access is also hampered when high marketing costs are required to achieve a certain level of awareness.
• Level of competition. Who dominates the market? Which competitors are ahead of you and why are they doing it?
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