You must be familiar with market terms. A place where sellers and buyers meet and carry out exchange or buying and selling activities. To maximize sales, you need to do a market analysis to determine the right marketing strategy. The results obtained from market analysis in the form of information about industry, customers, competitors, and other market variables. Information is collected and evaluated to make business decisions and strategies.
In conducting market analysis there are several dimensions that can be analyzed. These dimensions will help you understand the market and business industry:
Market size is a key factor in conducting market analysis. The dimensions of this market analysis can be measured based on current sales and potential sales. To measure the market there are several sources of information that can be used, namely government data, trade association data, financial data of major players and customer surveys.
In an analysis of market size, usually the bigger the market, the more competitors you have. To overcome this, try to make your product stand out from the rest. Also consider the price you give, not too high or too low. If it is too high, it is not impossible for your customers to move to competitors. But if it is too low, consumers will assume that your product is of poor quality.
Market Growth Rate
By researching this in market analysis, you will find out how growth and how long your market will last. This dimension will also give you consideration before investing. If the market grows then you can invest more in it.
To get this information, a simple way that you can do is to predict future possibilities using past data. However, this method does not predict important points in more detail. A better way is to study the factors that drive business growth such as demographic information, sales growth and so on.
In an age when the needs and desires of consumers change very quickly, market trends become an important part that must be included in market analysis. Consumers tend to get bored easily and want to change with other products. If you want to get the hearts of consumers then you must know the current trends to keep up with their changing desires .
Knowing what trends are developing in the market will help you determine what products should be sold. To get this information you need to find out about what customers like. It also saw how much they wanted to spend, as well as other trends that could attract their attention, and so on. You also need to know about market products, such as:
- Types and properties of goods.
- Quantity and quality of goods.
- The color and size of the items.
- Brand and price of goods.
- Design and model of goods.
- Industrial and consumption goods.
Business is built of course with the aim of making a profit. Therefore, before selling a product, you should analyze market profitability. If the market has good profitability then you can invest more there. But if what happens is the opposite, then it’s better to undo investing because it will only waste your capital and time. There are five things that affect market profitability, including the strength of buyers, the strength of suppliers, barriers to entry, the threat of substitute products and competition between companies in the industry.
Key Success Factors
The key success factor is the element needed for the seller to reach his marketing goals. These factors include access to distribution channels, access to unique and important resources, efficient use of resources, the ability to reach economies of scale and progress in using adopted technology.
Distribution channels are important things to consider when conducting market analysis. You need to assess how well and smoothly the channel will not hamper distribution and not make you lose or incur more costs. There are several channels that you need to pay attention to, including:
- Existing distribution channels and can be described by how direct they are to customers.
- Emerging trends and channels – new channels can offer opportunities to develop competitive advantage.
- Channelpower structures for example, in the case of products that have small brand equity, retailers have power over producer negotiations and can capture more margins.
The industry cost structure will look at how much it costs for production, marketing and distribution activities. With market analysis you can estimate these costs so you can also find solutions to reduce these costs and generate greater profits. Or in other words researching the industry cost structure will create your business development strategy.
Also Read: 6 Easy Steps to Perform Market Analysis to Determine New Markets
Those are some dimensions that need to be analyzed when you do a market analysis to find out about your business industry. After analyzing these dimensions, it is hoped that you will be able to map out how the market conditions are going. When you have solved this initial problem, then you can move to the next level. Namely management that aims to maintain success.