Facts to Consider When Writing a Market Analysis
An interesting fact to note is that a market analysis involves analyzing information on the peculiar characteristics of any market and synthesizing this information to not only back up a business idea but also guide in the execution of the idea. Some of the relevant information gathered from market analysis includes the following: knowledge of customer characteristics, suitable price points and analyze competitor vulnerabilities.
It is important to highlight that market analysis is an integral part of any startup. A properly done market analysis guarantees that the business has a clear strategy ahead. An excellent market analysis also informs investors on the potential of the firm and helps companies to construct strategies that that will increase the customer base and avoid potential pitfalls. It is a known truth that a market analysis is an essential part of any business that seeks funding because it shows the potential investor that facts and hard numbers back the business idea.
It is important to note that the elements of a good market analysis include the following; competitive analysis, industry description and target market. The truth is that industry description is an analysis of the current state of the industry and the direction the industry is taking. Some of the measurable indicators that should be included are the following: size, life-cycle, trends and projected growth. These variables show banks and investors that the business homework has done their research and knows what they are talking about.
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The target market is another important factor to include in the market analysis because it is not every Tom, Dick, and Harry that is the target market of the services or products that a business offers. Narrowing down on the target client ensures that the firm employs a focused marketing plan that is cheaper and more efficient as opposed to targeting everyone. While coming up with the target market, the company needs to gather information on market size and use person and attributes. It is vital to highlight that use persona and attributes involve covering demographics such as income, age and location. It is important to emphasize that there is also need to look in the psychological patterns of the target population and these includes things like interests and buying habits. It is important to note that market size involves a thorough analysis of the competitors in the market and where they are located and the amount of money customers spend on the product or service annually.
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The The truth is that the other aspect to consider is competitive analysis. This part has the following elements: market, barriers to entry and competitor strength and weaknesses. It is a known fact that concerning the market, the analysis needs to determine how big the market for the goods and services is.The other aspect is about learning what competitor strength and weaknesses are and how the business intends to do to bridge the gap. The analysis also addresses other issues like what the pitfalls to entering the market are and whether the cost is too steep.