Market AnalysisMarket analysis may take two distinct forms. In the first, it is a method used by investors to look at the market and try to determine whether it is going up or down, in order to make investment decisions. In the second, it is a field used by marketers to analyze the target market of their clients and determine the best courses of action to take to improve sales and profitability.
Key Elements of Market Analysis Market Size– Knowledge of the customer enables you to determine the market size and what determines their buying decision.Market Growth Rate- Business growth can peak when businesses have marketed to all of the customers willing to purchase the product. Market growth can also decline due to increasing competition, decreasing customer brand identification and technological innovations replacing older
Market Profitability- refers to how profitable a business can be within a specific market.Industry Cost Structure- helps the organization identify ways to increase business success. Distribution Channel- helps the organization determine the best system of distribution.
Market Trends- changes in the market are important because they often are the source of new opportunities and threats.Key Success Factors- are elements that a company within a specific industry must possess in order to be successful.
Market TargetingIs a broad term that is used to describe the process of identifying groups of consumers who are highly like to purchase a specific good or service
3 General Factors of market segment Segment Attractiveness Segment Size and Growth Company Objectives and Resources