There are so many issues that we found about the digital marketer mistakenly perform market analysis to determine new markets. This article will give you clear explanation about it.
To perform market analysis is a very important component in terms of product marketing planning. By conducting market analysis, it is expected to increase sales turnover and company profits. Furthermore, market analysis needs to be done to find business opportunities and potential that can be exploited.
Market analysis is the most important thing that should not be missed to determine new markets. The results of the market analysis will later be useful to find out the potential of existing businesses and how long a business can last. There are 6 easy steps to do a market analysis that you can try.
The Importance of Conducting Market Analysis
One of the factors that influence the need for market analysis is the level of frequency of consumers or buyers in buying an item. This is indicated by whether consumers often buy goods and depend on the level of consumption of these goods.
Market analysis is indeed very important to do, especially for marketers oriented to the Marketing Concept. An understanding of the market is needed in order to be able to choose and determine effective or appropriate marketing decisions. There are 5 main things that must be known in a market analysis:
- A description of the structure of market products, namely identifying a collection of products that can be presented to satisfy basic needs and then analyzing the ability to replace or substitute for those products.
- Relevant market limits, i.e. boundaries of the competitor groups deemed most relevant that can be set such as between brands or fellow marketers who meet the needs of the same market share.
- Analysis of industry demand, which is studying who, why, and how consumers or customers buy the type of product being marketed.
- Analysis of the demand for a brand, that is understanding how buyers make a choice between brands or sellers in a relevant market.
- Identification, which is based on the company’s research on market opportunities and market potential
Purpose & Advantages of Conducting Market Analysis
6 Easy Steps to Perform Market Analysis to Determine New Markets There are several main objectives in conducting market analysis, including identifying the needs of consumers who want to be met by the company, and determining how to design and determine bids that can satisfy those needs. The following are the objectives of a more detailed market analysis:
- To be more familiar with the market environment
- Get to know the types of markets
- Know the characteristics of the market more clearly
- Ready to face competitors
- Can implement policies in marketing
- Able to create programs in the field of marketing
- Can get to know the characteristics of the market
To perform Market analysis is carried out in order to intensify sales, so that the company will benefit, which can increase sales turnover, obtain the expected profits, and can increase production. In addition, products or goods marketed by the company will become more famous, the company’s production results will be popular with consumers. And the company can maintain its survival.
6 Easy Steps to Determine Market Analysis
A company will be said to be successful if in advancing its business, the company is able to carry out market analysis. Market analysis is a marketing concept that is oriented to the interests of consumers or oriented to the target market. In conducting a market analysis, there are 6 steps or stages that will be carried out, namely:
1. Determine the Relevant Market
The first step or stage that must be taken is determining the relevant market. Relevant markets are a series of products or services in the total product market structure that management considers to be very important and strategic. Determination of relevant markets includes two main steps.
First, management tries to describe and define the market first. And secondly, management describes the market-product structure along with relevant market boundaries.
2. Analyzing Primary Demand for Relevant Markets
The second step in market analysis is analyzing Primary demand for relevant markets. These primary requests include requests at the product class level. In this second step, management must try to describe the profile or characteristics of buyers and understand the factors that influence the buying process for all brands and products in relevant markets.
In other words, management must try to diagnose who are buyers and non-buyers in the relevant market and why they are buying or not buying a product.
3. Analyze Selective Demand in Relevant Markets
In carrying out market analysis steps, selective demand is the demand for a specific brand or supplier in the relevant market. In analyzing selective demand, management focuses more on understanding brand or supplier choices in relevant markets.
To examine the differences, the habits of buyers and their buying patterns, marketing management must implement a market segmentation strategy. Among them are identifying the type of decision process, and identifying the determinant attributes.
4. Define Market Segments
In this step, management must understand various ways to group consumers into segments whose members have the same response to specific marketing programs. There are several provisions for establishing a good market segmentation, such as market segmentation that must be easily accessible so that the marketing process can be more effective.
Market segmentation must be easily measured, and in accordance with the marketer’s feasibility. In accordance with the feasibility of the marketer the intention is to be able to measure market segmentation according to the product’s marketing capabilities. If the selected segment has many obstacles, the marketing process will not run smoothly.
5. Assessing Competition
Management must assess the product / brand compared to offers from competitors. One of the effective ways to get important information about competitors is through competitive intelligence.
6. Identifying Potential Target Markets
The final step you must take in market analysis is to identify the target market. The final goal of this stage is to identify the best opportunities for creating satisfied and loyal customers.
Until now, business has mushroomed in the community so it takes a lot of special strategies to be able to compete and increase sales. There is no way you can build a business and will immediately get a large income instantly.
One way to improve and grow a business is to perform market analysis. By analyzing the market potential first, it will be easier for your business to run. Manage your business financial statements more easily with Journal online accounting software. Journal accounting software is equipped with complete financial reports such as balance sheet, cash flow, profit and loss, and others. That way, you will focus on developing your business more reliably and safely.