Market Analysis


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Market Analysis is used to determine the attractiveness of a market and to understand its evolving opportunities and threats as they relate to the strengths and weaknesses of the firm.

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Market Analysis

  1. 1. Market Analysis<br />Marketing Assignment Course<br /><br />
  2. 2. Market Analysis<br /> Market analysis is used to determine the attractiveness of a market and to understand its evolving opportunities and threats as they relate to the strengths and weaknesses of the firm.<br /><br />
  3. 3. Market Analysis<br />The factors that are needed to be considered while analyzing a market are:<br />Market size (present and future)<br />Market growth rate<br />Market profitability<br />Industry cost structure<br />Distribution channels<br />Market trends<br />Key success factors<br /><br />
  4. 4. Market Analysis<br /> Market size<br />The size of the market can be evaluated based on present sales and year by year data can be used to predict the future sales. <br />The data can be obtained from the following sources: trade union associations, consumer surveys and government data.<br /><br />
  5. 5. Market Analysis<br /> Market Growth Rate<br />The Growth rate of a market can be calculated by estimating the future sales. <br />For this purpose the sales of previous years can be taken and a trend analysis can be prepared to forecast the future sales, in this way the percentage growth of the market can be calculated. <br />It gives the company a picture about how to prepare for future sales. <br /><br />
  6. 6. Market Analysis<br /> Market Profitability<br />Profitability is an important factor which needs to be considered in a line of business. Any company likes to invest in a business which yields good profits. <br />They don’t invest in a loss-yielding industry. <br />For ex: with iPods and personal music players coming up no company wants to invest produce tape cassettes or Phonogram records, because those products are outdated and people don’t want them. <br /><br />
  7. 7. Market Analysis<br />Market Profitability (Contd)<br />Yes, of course Phonograms and records are for vintage collectors. <br />But, companies do no produce them for the sake of collectors. <br />Moreover the percentage of collectors is not more than 1 or 2 percent of the whole market.<br /><br />
  8. 8. Market Analysis<br /> Industry cost structure<br />Cost of the industry is also a important factor to be considered. <br />If the initial cost of setting up the industry is exorbitantly high many small and mid-sized companies cannot enter that industry. <br />Ex: There are not many companies which produce commercial flights. Only Boeing and Airbus are the companies which successfully produce commercial flights.<br /><br />
  9. 9. Market Analysis<br /> Distribution channels<br />Distribution channels are the media through which the company supplies its goods to the final consumers. These mainly include the Dealers—Wholesalers--Retailers. Any company which produces goods that are consumed common public has to go through the above mentioned channels and finally reach the consumers. This increases the selling costs and increases the selling price of the product. <br /><br />
  10. 10. Market Analysis<br /> Distribution Channels (Contd)<br />Due to the lobbying of dealers some companies have chosen not to take the dealer, wholesaler route but instead choose the direct road to consumers. <br />That is direct selling. Amway, Tupperware are two such companies which pioneered in the field of direct selling. <br /><br />
  11. 11. Market Analysis<br /> Market trends<br />A company which correctly reads the market trends and responds and gets ready with the products for the future is a good pioneer in the industry. <br />Nokia is one such pioneer as, the company introduced models which the consumers couldn’t even think that such innovations could be put into a mobile and were available for a comparatively lesser cost.<br /><br />
  12. 12. Market Analysis<br />Key success factors<br />Companies have to take a deeper look internally about the best feature in their product and identify a USP (Unique Selling Point).<br />They need to develop in such a way that even without a unique product they can survive in the market. Not just survival but also reap profits from it.<br /><br />
  13. 13. Help With Assignment<br />About the Company: is an online tutoring company. Our network spans 3 continents and several countries. <br />We offer three kinds of services: Assignment Help, Thesis Help and Online Tuitions for students in their college or University.<br />Visit us at<br />
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