Market Analysis – 3 steps in market and competition analysis
If you are an aspiring entrepreneur, and you think you have products that have unique features and benefits not found in the current products available in the market, then you are definitely excited to introduce them and sell them in the market. Well, but you have to wait a little while before starting your journey, and provide the necessary information in order to safely and successfully reach your goal. First of all, review the goals and objectives of your project, then determine the area in which you can work, and try to know the extent of acceptance and interest of potential consumers in your products, and by this you have succeeded in evaluating the product that you will offer from the market point of view; This will help you in developing the marketing strategy that you will follow later.
Now, it is time to explore the market – with its competitors – and identify their strengths and weaknesses, and the sector you will target and focus on in implementing your strategy. In this article, we will explain three steps that must be followed to analyze the market, competition, and make decisions regarding a target market.
1. Market study and analysis:
This step aims to obtain clear information about the total market size on the one hand, and the most attractive sector or sectors on the other hand. Of course, this information is very important. As it will determine the size of the market and the sectors that should be focused on, and it will also contribute to determining the size, type and timing of investment. On the other hand, a distinction must be made between the total market; That represents the total expected revenue for your product, and among the available market; Which expresses the sector in which the producer can compete with strength and realism. The factors affecting this must be taken into consideration, such as: economic, social, demographic, legal and others factors.
Once the picture becomes clear in front of you about these two markets, you will be able to start collecting the necessary data on the size of the expected revenues, which can be accessed through government bulletins and reports, and previous studies published in various sources, or through the Internet, or by resorting to A consulting firm is carrying out this study. But you should be aware that these sources may provide conflicting information, or that some of them are out of date and not suitable for the time when you are studying and analyzing the market; So you must make sure of its validity and validity.
Next, you have to segment the market into sectors or segments; In terms of the needs and desires that the producer can satisfy, the size of the expected demand, the purchasing capabilities of the potential consumers, the prices that can be charged, and the resulting revenues and investments. By doing this, you will be able to define the target sectors and focus your efforts on them.
2. Identify and target clients:
This step aims to identify the customers most likely to accept and purchase your products; They will form the nucleus from which you will launch your market expansion, and they will also help accelerate your marketing efforts. Here, we advise you to divide these clients into different categories; A category that includes the final customers (that is, individuals who will use the product to satisfy their personal needs), another category that includes merchants, and a third category that includes suppliers, and so on.
The next stage is preparing lists of your potential customers, and arranging them according to their purchasing importance. For example, if you are marketing a technology product, the most important group that you should target is programmers, but if you are marketing an intermediate product that enters into the production of another product, there is no doubt that you should target production managers and purchasing in industrial companies. You also have to identify the so-called opinion leaders or role models that individuals are affected by when making their purchasing decisions and target them with your product in order to reach the largest number of potential customers.
3. Competition analysis:
Knowing your potential competitors in your target markets is just as important as identifying your target customers; It will determine the extent of your ability to confront and overcome them. So; You have to study their products very carefully, recognize their strengths, their weaknesses, and exploit them to market your products. Among the most important things to focus on in analyzing competition: cost, prices, level and speed of service, and technology used.
Your follow-up and implementation of these steps with precision and attention will determine – to a large extent – the future of your project, the possibilities of success that will be achieved, and the possibility of continuity, growth and development in light of volatile markets and changing circumstances.
The art of money
Market analysis of the market and competition