What Market Analysis Include?
1. Industry Overview: Understanding the broader industry landscape is fundamental. This includes the size of the industry, its growth rate, and any significant historical or current developments. Analysing trends provides insights into the direction the industry is heading, allowing businesses to align strategies with market dynamics.
2. Target Customer Analysis: Define the characteristics of the target customer through demographics (age, gender, location, occupation, education), psychographics (lifestyle, values, personality), and behavioural traits (buying patterns, preferences). Developing customer profiles or personas aids in tailoring products and marketing messages.
3. Competitive Analysis: A competitive analysis evaluates competitors’ strengths, weaknesses, opportunities, and threats (SWOT analysis). This process provides a comprehensive understanding of the competitive landscape, enabling businesses to identify opportunities for differentiation and strategic positioning. It also helps in anticipating competitive threats and formulating effective responses.
4. Market Forecast: Provide a forecast of market trends and future developments. This includes predicting changes in customer behavior, technological advancements, and overall market dynamics. A forward-looking perspective helps in strategic planning.
5. Regulatory Environment: Assess the regulatory landscape that governs the industry. Understanding regulatory requirements and compliance issues is essential, as non-compliance can impact operations and market entry strategies.
6. SWOT Analysis for Your Business: Conduct a SWOT analysis for your own business to evaluate its internal strengths and weaknesses, as well as external opportunities and threats. This self-assessment provides a realistic view of your business’s positioning in the market.