This article will go over what is market analysis, methods of market analysis, reasons for understanding customers and what can market analysis achieve.
What is Market Analysis?
When a firm undertakes a detailed examination of the characteristics of a market:
- The Market size.
- Market Share.
- Costs and difficulties entering the market.
- Patterns of sale.
Reasons For Understanding Customers
- Satisfy their needs.
- Understand customer demands.
- Improve products to sell more.
- Feedback of products.
- To work out what prices products should be.
Methods of Market Analysis
- Analysing Trends such as moving averages, extrapolation and correlation.
- Estimating sales.
What Can Market Analysis Achieve?
- A higher knowledge and understanding of the market.
- The ability to predict future changes in the market.
- See where a new product USP (unique selling point) is needed.
- Understanding target markets.
- Increase in sales/revenue/market size.
- Help to achieve marketing objectives.
- Base price for products.