A marketing analysis is a detailed assessment of a market in a chosen industry. It encompasses potential customers and their buying habits, competitors, their strengths, and weaknesses. Marketing analysis helps entrepreneurs reduce business risks, effectively connect with the target audience, provide the right products, and align with the market trends.
In this article, you’ll find out why marketing analysis is essential for your business. You’ll also unveil how to conduct a marketing analysis.
Why is a marketing analysis important for your business?
To be successful, every product needs a comprehensive market analysis of competitors and customers. During this analysis, marketers collect data to unveil whether the product they want to market will meet customers’ needs and solve their pain points. Marketing analysis is essential for improving a company’s position within a specific market and being competitive and useful for customers. After an effective analysis, entrepreneurs receive valuable information about economic shifts, market trends, demographics, competitors, consumers’ buying behavior, etc.
Business owners can reap several benefits after incorporating market analysis into their marketing plan. Then, a company’s team will be aware of the market trends, competitors, and things a brand should do to reach success. As a result, marketers will reduce risks and make the right business decisions.
Understanding customers means that a brand can serve their needs with a product. Targeted products increase customer satisfaction and customer loyalty. Marketers will be able to identify their past mistakes and optimize marketing efforts.
Now that you know why marketing analysis is vital for your business, let’s explore how to conduct it.
How to conduct a marketing analysis?
The effective analysis takes time and effort. It’s time to figure out how to do it step by step.
- Define your key goal. You might have different reasons for conducting an analysis: identify and evaluate competitors, assess the market condition, or analyze your customers. Decide on the purpose of your marketing analysis. It can be internal and external. Internal means that you want to make improvements within your company like effective management of a cash flow. External means that you need some help or changes outside your business like seeking a business loan.
- Outline your industry’s condition. Evaluating the state of a specific industry is crucial for research. Try to find out the direction the industry is heading. You should use metrics like size and projected growth to outline the condition of the industry you want to join.
- Determine your target audience. Successful marketing of a product requires you to select the right target audience. Since all people can’t be your customers, you need to identify those who will be interested in the benefits your product provides. For this purpose, conduct special research. Your analysis should focus on your ideal customer and the things that might influence purchasing decisions. To address prospects' wants quickly, you need to identify your target audience's age, gender, location, occupation, preferences, interests, and needs. Develop a buyer persona that covers the characteristics of your ideal customer so that your team can decide on the marketing efforts.
- Understand your competitors. One of the most important elements of marketing analysis is competitor research. You need to allocate enough time to evaluate your competitors, their position within the market, strengths, weaknesses, benefits, and superior qualities. Compile a list of key competitors and do a SWOT analysis for each of the companies on your list. Identify the reasons they stand out and find out what makes them different. After, highlight the most prominent competitors so that you can be aware of their position within the market.
- Analyze your data. Once you gather the necessary information and verify it, it’s time to evaluate its usefulness for your company and product. Divide your data into three main sections that matter most for your business: competitors, target market, and purpose. Ensure that your analysis covers the following elements: customer buying trends, industry overview, forecasts for your future growth, etc.
- Use your marketing analysis results. Look through your marketing analysis again to figure out what information you can use to make your company benefit. After analyzing your competitors' marketing strategy, you might want to improve yours to reach customers. Consider improving your website, marketing methods, and how you want to present your product and leverage new marketing channels. You might wish to implement chatbots for the most popular social media networks to connect with consumers instantly. As a result, you’ll obtain advanced products and an effective marketing strategy.
If you feel insecure about entering a new market with a new product, you better conduct a marketing analysis first. Hope you’ll manage to do it right with our step-by-step guide.
Last Updated: 15.07.2022