Your cart is currently empty!
Market Evaluation
•
- Industry Analysis
- Target Market
- Market Demand
It’s time for lots of work!!! This is a very big step.
Industry Analysis
Define the Industry
Scope
Clearly define the industry you are analyzing. What are its boundaries? Which products or services are included?
Segmentation
Identify sub-sectors or segments within the industry.
Gather Relevant Data
Market Research
Collect data from industry reports, market research studies, and reputable publications.
Statistics
Look for statistics on market size, growth rates, and trends.
Analyze the Competitive Environment
Porter’s Five Forces
Assess the competitive dynamics using this framework:
Threat of New Entrants
Barriers to entry, capital requirements.
Bargaining Power of Suppliers
Number of suppliers, uniqueness of service/product.
Bargaining Power of Buyers
Customer concentration, price sensitivity.
Threat of Substitute Products
Availability of alternatives.
Industry Rivalry
Number and strength of competitors.
Examine Industry Trends
Technological Changes
Impact of innovation and technological advancements.
Regulatory Environment
Relevant laws and regulations affecting the industry.
Economic Factors
Economic trends that influence the industry (e.g., recession, inflation).
Identify Key Players
Major Companies
List and analyze the major companies in the industry, their market share, strengths, and weaknesses.
Market Positioning
Understand how these players position themselves in the market.
SWOT Analysis
Conduct a SWOT analysis
(Strengths, Weaknesses, Opportunities, Threats) for the industry to understand its internal and external factors.
Forecast Future Trends
Projections
Use gathered data and insights to project future developments in the industry.
Scenario Analysis
Consider various scenarios based on different assumptions about the market or economic conditions.
Compile Findings
Report Creation
Document your findings in a clear and structured report, including charts and graphs to illustrate key points.
Conclusions and Recommendations
Summarize insights and provide strategic recommendations based on your analysis.
Target Market
Demographics
Analyze age, gender, income level, education, occupation, and family size to understand the characteristics of your potential customers.
Psychographics
Explore lifestyle, values, interests, and personalities. Understanding what motivates your audience can help tailor your messaging.
Geographics
Identify the location where your target market resides. This can include regional, national, or global considerations, as well as urban versus rural distinctions.
Behavioral Factors
Examine purchasing behavior, brand loyalty, usage rates, and decision-making processes. Understanding how consumers interact with your product or service can inform strategies.
Market Needs
Assess the specific needs and pain points of your target audience. Determine how your offering can solve their problems or fulfill their desires.
Competition
Analyze competitors targeting similar markets. Understand their strategies, strengths, and weaknesses to position your product effectively.
Market Size and Growth Potential
Evaluate the size of the target market and its growth potential. A larger, growing market may offer more opportunities.
Trends
Stay informed about industry trends and shifts in consumer behavior that might affect your target market.
Accessibility
Consider how easily you can reach and engage your target market through marketing channels and distribution methods.
Regulatory Environment
Be aware of any regulations or legal considerations that may impact your marketing strategies for specific demographics.
Market Demand
Market Research
Surveys and Questionnaires
Collect direct feedback from potential customers about their needs, preferences, and willingness to pay.
Focus Groups
Conduct discussions with small groups to gain qualitative insights into consumer attitudes and preferences.
Industry Analysis
Market Reports
Review existing market research reports that provide data on industry trends, growth rates, and consumer behavior.
Competitor Analysis
Analyze competitors to understand their market share, strategies, and customer base.
Demand Forecasting
Historical Data
Use past sales data to identify trends and project future demand.
Statistical Models
Apply quantitative methods to predict future demand based on various factors such as economic indicators and seasonality.
Trial Marketing
Pilot Programs
Launch a product in a limited market to gauge interest and gather real-world data.
Minimum Viable Product
Develop a basic version of your product to test demand before investing heavily.
Online Analytics
Web Traffic Analysis
Use tools like Google Analytics to assess interest in your product based on website visits, click-through rates, and engagement metrics.
Social Media Insights
Monitor social media conversations, likes, shares, and comments to understand consumer sentiment and interest.
Customer Segmentation
Break down the market into segments based on demographics, psychographic, and behaviors to identify which groups show the most promise.
Economic Indicators
Analyze broader economic indicators such as employment rates, consumer confidence, and disposable income, as these can influence market demand.
Testing Pricing Strategies
Experiment with different pricing models to determine how price changes affect demand.
Feedback Loops
Establish mechanisms for ongoing customer feedback to adapt to changing preferences and needs.
Expert Consultation
Engage with industry experts or consultants who can provide insights based on their experience and knowledge of market dynamics.
In this post I stepped beyond the business proposal a bit and into the future of your business to show you that bit of work that is residual so you need to get comfortable with this process.
My very best wishes for your success!