Top market analysis tools and steps with free downloadable templates!
Written By : Bakkah
25 Jan 2023
A key element of business success is an understanding of your customer base. Developing an effective Marketing Strategy may be challenging without an understanding of who your customers are, what they want, and how they want to receive it from you. This is where a Market Analysis comes in.
The purpose of a Market Analysis is to provide detailed information about industries, customers, competitors, and other market variables. Furthermore, you can determine how supply and demand are related to a particular product or service.
Making informed decisions about possible Marketing Strategies can be done based on these insights.
What is Market Analysis?
Market analysis provides the basis for the formulation of a marketing strategy and the implementation of specific marketing measures.
An industry or market analysis is a type of research tool that helps you understand the industry or market better. It is often presented in the form of a report.
Enterprises of all sizes that are considering ventures into new markets often use market analysis. These businesses can benefit greatly from market analysis in determining whether entering a new venture is a wise business move.
How well does your offer fit a particular market? An analysis of the market will provide answers to these critical questions.
Market Analysis can be carried out by every market participant, whether it be a company, an entrepreneur, or an individual. Regardless, it represents a basis for decision-making.
A decision regarding the purchase or sale of products is made by collecting and evaluating information from suppliers and buyers. Moreover, you can evaluate the market you are currently operating in as well as view new markets.
What are the Benefits of Market Analysis?
Research is key to a company's ability to adapt to a changing environment. Research should be incorporated into strategic plans to the greatest extent possible.
Marketing Research has the following main benefits:
- Maintain a customer-centric perspective
- Communication with potential and current customers is guided by market research
- The investment risk is minimized
- A threat assessment identifies possible threats and opportunities
- Emerging trends can be identified by using them
- Keeping businesses competitive requires them to stay on top of their game
- By comparing the business performance with benchmarks, one can assess its success
Best Market Analysis Tools:
Your business must employ research tools to gain a deeper understanding of your customers and attract new ones.
No matter what size business you're running, whether you're a start-up or a large corporation - each of these services can provide you with insightful information.
Here are the 3 best market research tools we've found so far, along with their advantages.
1. Answer the Public
- By using the tool called Answer the Public you can learn what questions people are asking online.
- When you enter your topic on the search page, you will be presented with a list of questions, topics, common search terms, and related subjects that you can choose from.
2. Think With Google
- A tool that many marketers rely on to provide real-time data. Additionally, it is more focused than its sibling, Google Trends.
- Features such as consumer insights provide a glimpse into the world of commerce. However, while you can perform specific searches, they may be better used for creative inspiration, rather than for answering specific inquiries.
- Globally, Statista provides market and consumer data for many industries
- Analytic dashboards and survey sources are available when you click on the results
How to do a market analysis?
Time and effort are required for effective analysis. Here is a step-by-step guide to completing it.
1- Identify the purpose of your research
- You may need to analyze a variety of reasons, including identifying and evaluating competitors, assessing market conditions, or analyzing your customers.
- Identify your marketing analysis purpose, considering various external and internal sources.
- Internal improvement means improving company operations, such as controlling cash flows more effectively.
- In external circumstances, you may require assistance or modifications outside of your business, for example, a business loan.
2- Research Your Industry
With data and statistics, present an overview of the size and trends of your industry, forecasted growth, and market saturation.
The purpose of highlighting this research is to demonstrate due diligence to investors, lenders, or business partners and to provide a recommendation on the value of an industry.
3- Identify Your Target Market
This is where you determine who your typical customers are. There may be a specific profile of customers you are looking for or a variety of customers who might all be attracted to your products or services.
Identifying your target market early on allows you to understand your customers' problems and how to reach different segments of the market.
As a result of your industry research, create personas for your targeted customers, which include details such as:
- Age and gender
- Geographical location
- An occupation
- Interests and hobbies
- Marital status
Consider your typical customer's mindset and motivations while building a profile. The result will be an engaging strategy that offers solutions to your audience's problems.
4- Analyze the Competitive Landscape
As you seek to capture the attention of potential customers in your target market, this next step leads you from broad industry insights to a closer examination of the brands you'll be competing against.
5- Determine Market Gaps
Having insight into how your competitors fare will allow you to identify market gaps, differentiate your products, and stand out in your industry.
Gaps in the market are unmet needs that exist in the market.
In the online education industry, for example, learners may be interested in topics that existing courses do not cover. Therefore, you could develop a course to meet the learners' needs.
6- Entry Barriers
Describe the protections you have in place to prevent new competitors from entering the marketplace. Whether you have a great location or patents that protect your business, you may have such an advantage.
Asking your potential customers how they are currently solving their problems, as well as what alternative solutions they are using, is the most effective way to research your competitors.
It is also a good idea to do some research on Google to see what else is available.
7- Forecast Your Sales
Your final step in conducting a market analysis is to create a forecast of your potential market share. This is based on your knowledge of your industry, your target customers, and your competitive landscape.
Forecasting sales is the process of estimating future sales to make more confident business decisions and secure funding from investors and lenders.
By estimating the market share you will be able to get, you can determine whether you will need a business loan. In addition, you can determine your pricing structure and projected revenue.
A forecast can be useful for specific time intervals, such as the next three months, six months, or a year.
Market Analysis Template:
Here are three Market analysis templates to download easily in MS Word:
- Market analysis template in MS Word
- Market analysis template in Google Docs
- Real Estate Market analysis template in MS word.
To conclude, the analysis of markets isn't complex at all!
Regardless of how dictionaries define it, it's simply a tool used to determine the characteristics of markets and industries.
Market analysis can provide valuable information about a market to businesses. You can identify and assess the opportunities and risks of a market through market analysis.
This is if you are setting up a business, investigating your current market, or simply browsing new markets. Yet, it is essential for developing concrete marketing strategies and successfully implementing business ideas.