A market analysis determines the attractiveness and opportunities within a market. It involves analyzing the market size, segments, trends, growth, profitability, industry costs, distribution channels, and key success factors. Understanding these dimensions provides insight into customers and competitors to identify business opportunities and inform strategic decisions. Performing regular market analysis helps ensure marketing resources are effectively allocated.

1. Marketanalysis
MARKET
• A market is defined as the sum total of all the buyers and sellers in the area or region under
consideration. The area may be the Earth, or countries, regions, states, or cities.
• The value, cost and price of items traded are as per forces of supply and demand in a market.
The market may be a physical entity, or may be virtual. It may be local or global, perfect and
imperfect.
MARKET ANALYSIS
• A market analysis is the best way to get a third-party perspective of all of the best options for
your marketing campaign, and to ensure that your marketing dollars are spent in the most
effective way possible.
• The goal of market analysis is to determine the attractiveness of a market and to understand
its evolving opportunities and threats as they relate to the strength and weakness of the firm. 6
OBJECTIVES
 Determine attractiveness of a market.
 Find & identify new business opportunities.
 Targeting and dividing the market into niche.
 Positioning the products or brands in the mind of customers Understand the dynamics
of the market
 Great help in understanding the customers
 Analysis the competitors
 Market information
 Identify business opportunities
 Help to resolve business problems
WHY MARKET ANALYSIS ?
o Market information
o Insight into existing customers
o Identifying potential customers
o Customer need
o Customer behaviour pattern
o Identify business opportunity
o Competitor Analysis
o Economic overview
o Shift share analysis

2. o Occupational changes
o Strategic advantage
o Resolving Business Problems
WHEN MARKET ANALYSIS?
o Determining the sales potential of your products and services.
o Attracting customers to your business
o Selling to customers and earning repeat business
DIMENSIONS OF MARKET ANALYSIS
 Market size (current and future)
 Market segment
 Market trends
 Market growth rate
 Market profitability
 Industry cost structure
 Distribution channels
 Key success factors
MARKET SIZE
o Total annual sales in the market served.
o Current market size and future size.
HOW TO DETERMINE MARKET SIZE?
 Govt. data.
 Trade associations.
 Financial data from major players.
 Customer survey.
MARKET SEGMENTS MARKET
Geography and location
a) market in which we sell
b) local market or international market
Customer segments
a) who buy our product
b) profile of target customer

3. MARKET TRENDS
 Once the segments of the product's market are determined, the market trends of
the product needs to be analysed from time to time.
 Identify the trends in the market segments within which the product fits.
 If the market segment is growing and is projected to continue to grow, then it is an
upward trend.
 If the trend is for new products then the company should replace older models,
with new ones and that is called downward trend for the older products.
MARKET GROWTH RATE
 Keep a track of the market condition.
 Sales growth of complementary products.
 Product life cycle phases can be understood.
How to estimate the Market Growth Rate ??
 Historical data
 Demographic information
MARKET PROFITABILITY
 Profit potential for a market can be used as a guideline to determine how difficult it is
to make money in the market.
 Porter`s 5 forces identifies the 5 factors that effect the market profitability.

4. INDUSTRY COST STRUCTURE
 Identifying key factors for success.
 Porter's value chain model is useful for determining where value is added and for
isolating the costs.
 The cost structure also is helpful for formulating strategies to develop a
competitive advantage.
DISTRIBUTION CHANNELS
 The path through which goods and services travel from the vendor to the consumer.
 A distribution channel can be as short as a direct transaction from the vendor to the
consumer, or may include several interconnected intermediaries along the way such as
wholesalers, distributers, agents and retailers.
ANALYSING DISTRIBUTION CHANNEL
 What are the alternative distribution channels
 What are the trends,
 what channels growing importance,
 what new channels emerged or likely emerged
TYPES OF DISTRIBUTION CHANNELS
 Existing distribution channels
 Trends and emerging channels
 Channel power structure

5. KEY SUCCESS FACTOR
 The key success factors are those elements that are necessary in order for the firm
to achieve its marketing objectives.
 Access to essential unique resources
 Ability to achieve economies of scale
 Access to distribution channels
 Technological progress
PERFORMING MARKET ANALYSIS
 Identify why a customer would buy your product.
 Define your target market through segmentation.
 Conduct market research.
 Analyze the results of your research.
 Incorporate your findings into strategic business decisions.
MARKET RESEARCH
Market research can be of two types:
1. Primary Market research
Primary research is original information gathered through your own efforts to
respond to a specific question or set of questions. This information is normally gathered
through surveys, observation, or experimentation.
2. Secondary market research
Secondary research exploits existing resources like company records, surveys,
research studies and books and applies the information to answer the question at hand.
It is normally less time consuming than primary research, and can be less expensive as
well.
CONCLUSION
 Important to know your business inside and out.
 Helps us to stick to the concept of describing the market and the industry as they exist
today, a sort of situation analysis.
 If Market is analysed well then the stage will be set to present your plan and product to
the world.
 Helps in proper implementation of Marketing Plan and Strategy of the product.