A Good Market Analysis Should Include the Following Four Components

Market Analysis

What is a Market Analysis? A market Analysis is the actual assessment of the target population, competition and needs for marketing a product or service.

A Good Market Analysis should include the following four components:

1. Analysis of the Target Market

a. Who is my target market and why (who are my customers)

b. What are the personal and geographical demographics of my customers

i. Age, Gender, Income

ii. City, Population and Climate

c. Are my customers businesses or private consumers?

d. Is the market saturated or wide open?

e. What will my customers pay for my product?

2. Analysis of the Competition

a. Who is my competition?

b. Are my competitors successful?

c. How do my competitors run their business, how do they advertise?

3. The Outlook of the Industry

a. What does the future look like

b. Is it a growing Industry?

4. The Owner’s Personal Strengths

a. What is my competitive advantage?

b. Can I offer something that my competitors are not offering?

c. What specific skills do I possess that will allow my company to be competitive in this market?