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A lot of people hope that they will start a business at one point in their lives. Some of them even accomplish this.
From these, only a small percentage will achieve success. We think that the difference between the ones who attempt and the ones who actually succeed in business is access to information and its capitalization.
Information may be acquired via market analysis.
You can do it yourself or you may contract a team of expert investigators.
For sure-fire results, we advise you to choose the latter. Anyway, this is what you should know!
What is market analysis/intelligence
Market analysis is similar to a background check, applied not to a person, but to a business environment. In short, market analysis is the process of collecting information about the conditions which may affect the marketplace.
For those who want to be more specific: market analysis is the process of qualitative and quantitative research in what pertains to the size of the market, its different segments, buyers’ habits, competition, but also the economic climate.
What is included in a market analysis
In order for it to really be successful, market analysis must present a detailed image of the market and the industry of the business you want to start. This image must include:
- A description of the industry, to be precise its size, growth rates, major trends and other aspects you deem important;
- The target market, that is to say the category of clients that you desire. Find out how you can identify customer’s needs by using Big Data and discover other important aspects about it;
- The main buyers’ habits, their needs, but also the degree to which the needs are fulfilled at the moment. Other relevant details include the seasonality of acquisitions, if it exists, the decision factors or localisation of buyers groups;
- The size of the target market, more precisely the number of potential customers, the number of acquisitions, but also the buying frequency or growth potential for said market;
- The size of the market share that you can win and arguments in favor of this process;
- The media channels that can be used for market communication. Here we could identify radio programs, TV, Internet and social platforms or various publications;
- Analysis of the competition, more precisely the direct and indirect competitors, their market share, strong points and weaknesses, communication strategies and barriers that they can set to hinder your market emergence;
- Restrictions and regulations which may affect the business and solutions to be used in order to obtain approvals. Obviously, we must also detail the costs for such procedures.
After you’ve gathered all this information you should discover how to choose a market entry strategy!
Why is market analysis essential in order to start a business?
As we’ve explained in the introduction, in business, but not only, information is power.
Undertaking a market analysis will help you fully understand what is your target audience, their needs, but also the conditions of the market. This is the only thing that will allow you to create a successful service or product and differentiate between yourself and your competition.
If you want to have an edge in this process, don’t hesitate to contract our services.
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