When you’re launching a new product or looking for ways to boost market share over competitors, conducting a market analysis is essential. Any time and resources spent on analysis will more than pay off in the long run, giving you a chance to better understand your customers, assess risk, and more.
So what are the objectives of market analysis? And why is market analysis so important?
What Is a Market Analysis?
Let’s start with the basics: What is market analysis? This is an important type of research that allows you to learn more about your customers, the industry, and your competitors. And why is it important to know your competitors? This information will help you attract more customers and ultimately become more profitable. You can learn what your competitors are doing right, and where they’ve gone wrong. Then you can improve on what they’re doing to stay ahead of the industry curve.
A market analysis typically includes an overview of the industry, a description of the target market, analysis of any known competitors, and details about pricing and market forecast.
What Are the Objectives of a Market Analysis?
Now that you better understand what a market analysis is, you may be wondering about the top reasons for conducting market research. In short, a market analysis gives you the opportunity to find business opportunities, form partnerships, increase profits, and reduce business risks. A thorough analysis will also benefit you by helping you craft effective marketing messages that are custom-tailored to your audience.
How Often Should You Conduct a Market Analysis?
With all the benefits a market analysis provides, it’s important to conduct them on a regular basis. Many companies opt for a comprehensive market analysis quarterly—but it’s even more ideal to perform a monthly analysis.
You might consider conducting a more thorough analysis every quarter, and a shorter analysis every month. But no matter how often you choose to conduct market research, remember to stay consistent. You’ll gain greater insights over time, and your efforts will pay off more the longer you keep at it.
When Should You Conduct a Market Analysis?
As we just mentioned, regular and consistent market analysis will give your company the chance to keep a leg up on the competition and stay in tune with the needs of your customers. But there are other times when market analysis is especially crucial.
Anytime you’re launching a new product, rebranding, starting a new business, or reintroducing a product, consider it the most vital time to conduct a market analysis. This will give you the best chance of success in getting your product or business off the ground.
What Can a Market Analysis Reveal?
A market analysis can provide a wealth of information about your customers and competitors. Here are just a few things an analysis might reveal:
- New business opportunities
- Ways to upgrade your products and services
- New markets
- Product flaws
- Customer service problems
- How to catch the attention of your audience
- Best marketing platforms
- How to win over unhappy customers
- Ways to boost customer satisfaction
- New business goals
How Is Market Analysis Data Gathered?
There are many different ways to gather data for a market analysis. The method you choose should depend on your target demographic and the specific needs of your company. For example, a company targeting senior citizens may opt to survey customers at brick-and-mortar stores, while a company targeting millennials might use social media.
But surveys aren’t the only way to learn more about a market. Here are some other common ways to gather market data:
- Read private company reports, government data, newspapers, textbooks, etc.
- Conduct interviews with consumers (over the phone or in person).
- Conduct a study and analyze observations.
- Review documents and records from company data (call logs, emails, customer databases, etc.).
- Conduct an experiment.
What Parts of a Market Analysis Can You Outsource?
Does conducting a market analysis sound overwhelming? Luckily, you can outsource almost every aspect of the task to a reputable third party. Many companies specialize in market research and consulting, saving you precious time, money, and resources. Market research companies can conduct studies and interviews, craft surveys, gather data, and create detailed reports to help guide your business decisions.
How Can You Use What You Learn from a Market Analysis?
Once you’ve conducted your market analysis, it’s time to put the information to good use. Use your data to make strategic business decisions, motivate your stakeholders to take a certain action, or change the trajectory of your product development.
Ready to begin your market analysis? Partner with ROI Solutions to gather robust, reliable market data. We’re experts in customer acquisition and retention, and we’ll help you find ways to grow your business like never before.