The marketplace analysis studies the attractiveness and dynamics of specialized markets in specialized industries. This is part of the industry analysis and thus in turn global environmental analysis. Through all of these analyzes, the strengths, weaknesses, opportunities and threats (SWOTs) of a company can be identified. Finally, with the help of SWOT analysis, an adequate corporate business strategy will be determined. Market analysis is also known as a documented investigation of the market used to inform corporate planning activities, particularly around inventory decisions, purchases, labor expansion/contraction, expansion of facilities, purchase of capital equipment, promotional activities, and many other aspects of a company.
Video Market analysis
Market segmentation
Market segmentation is the basis for different market analyzes. Differentiation is important. One of the main reasons is the saturation of consumption, which is due to increased competition in the products offered. Consumers ask for more individual products and services and get better information about different products than ever before. As a result, market segmentation is required. Segmentation covers a lot of market research, as much market knowledge is required to segment the market. Market research on market structures and processes should be undertaken to determine "relevant markets". Relevant markets are an integral part of the entire market, where companies focus on their activities. To identify and classify relevant markets, market classification or segmentation should be undertaken.
Market segmentation is an important way to find competitive advantage with its differentiation in market analysis. Market segmentation concentrates on market energy and strength to gain competitive advantage. In other words, market segmentation is a concept tool to gain strength (Thomas, 2007). In market analysis, market knowledge is needed to analyze market structures and processes. Because segmentation requires a lot of market research, various information can be extracted from it. Market segmentation can identify customer needs and wants and develop products for their satisfaction. Market segmentation can identify different products for different groups, better according to customer desires and product benefits, maximize the use of available resources and focus marketing spending and competitive advantage (Karlsson, 2012).
There is no specific way to segment the market. However, businesses can follow common rules such as geographic, demographic, psychographic, and behavioral. Good market segmentation must be sustainable, accessible, actionable, measurable, and differentiated (Karlsson, 2012).
Maps Market analysis
Market analysis dimension
David A. Aaker outlines the following dimensions of market analysis:
- Market size (current and future)
- Market trends
- Market growth rate
- Market profitability
- Industrial cost structure
- Distribution channel
- Major success factors
- Details of major success
Market analysis seeks to determine market attractiveness, current and future. Organizations evaluate future market attractiveness by understanding emerging opportunities, and threats related to the strengths and weaknesses of the organization itself.
Organizations use these findings to guide investment decisions they make to advance their success. Findings from market analysis can motivate organizations to change various aspects of their investment strategy. Affected areas may include inventory levels, labor expansion/contraction, facility expansion, purchase of capital equipment, and promotional activities.
Element
Market size
Market size is determined by market volume and market potential. Market volume shows the totality of all realized special market sales volumes. The volume therefore depends on the quantity of consumers and their regular demand. Further, the market volume is measured in quantity or quality. Quantity can be given in technical terms, such as GW for power capacity, or in the number of items. Most qualitative measures use sales turnover as an indicator. That means that the market price and quantity are taken into account. In addition to market volume, market potential is equally important. It defines the upper limit of total demand and considers potential clients. Although the market potential is rather fictitious, it offers good orientation values. Market volume relationships with market potentials provide information on possible market growth. The following is an example of an information source to determine market size:
- Government data
- Trade association data
- Financial data from major players
- Customer survey
Market trends
Market trends are upward or downward market movements, over a period of time. The size of the market is more difficult to predict if someone starts with something completely new. In this case, you should get numbers from the number of potential customers, or customer segments.
In addition to information about the target market, one also needs information about competitors, customers, products, etc. Finally, you need to measure marketing effectiveness. Some techniques are:
- Customer analysis
- Selected modeling
- Competitor analysis
- Risk analysis
- Product research
- Advertise research
- Marketing mix modeling
- Simulation Test Marketing [5]
Changes in the market are important because they are often sources of new opportunities and threats. In addition, they have the potential to dramatically affect the size of the market.
Examples include changes in economic, social, regulatory, legal and political conditions and in available technology, price sensitivity, demand for variation, and level of emphasis on service and support.
Market growth rate
A simple way to forecast market growth rates is to extrapolate historical data into the future. Although this method can provide first-order estimates, this method does not predict an important turning point. A better method is to study market trends and sales growth in complementary products. The driver serves as a more accurate main indicator than simply extrapolating historical data.
Important inflection points in market growth rates can sometimes be predicted by building a product diffusion curve. The shape of the curve can be estimated by studying the characteristics of similar product adoption rates in the past.
In the end, many markets are maturing and declining. Some of the key indicators of market decline include market saturation, emerging replacement products, and/or absence of growth drivers.
Market opportunities
A product of a market or service opportunity, based on one or more technologies, meets market needs (preferably increased) better than competition and better than technological substitution within a given environmental framework (eg society, politics, law, etc. ).
Profitability of the market
While different organizations in the market will have different levels of profitability, they are all similar to different market conditions. Michael Porter devised a useful framework for evaluating industry or market appeal. This framework, known as Porter's five-power analysis, identifies five factors that affect market profitability:
- The power of the buyer
- Supplier strength
- Sign in barriers
- Substitute product threat
- Competition among companies in industry
Industrial cost structure
Cost structure is important to identify key factors for success. For this purpose, Porter's value chain model is useful for determining where values ​​are added and for isolating costs.
The cost structure is also very helpful for formulating strategies to develop competitive advantage. For example, in some environments, the effect curve of experience can be used to develop cost advantage over competitors.
Channel of distribution
Examining the following aspects of the distribution system can help with market analysis:
- Existing distribution channels - can be explained by redirecting them to customers.
- Emerging trends and channels - new channels can offer opportunities to develop competitive advantage.
- Structure of channel strength - for example, in the case of a product that has little brand equity, the retailer has negotiating power over the manufacturer and can capture more margins.
Success factors
The key success factors are the elements needed for the company to achieve its marketing objectives. Some examples of these factors include:
- Access to important, unique resources
- Ability to achieve economies of scale
- Access to distribution channels
- Technological advancements
It is important to consider that the key success factors may change over time, especially when the product evolves through its life cycle.
Environmental analysis
Environmental analysis can be divided into two parts: external and internal factors. External factors. Political problems, potential social forces, and the local economy are called external environmental factors. Internal environmental factors belong to the company's internal position such as employees, departmental structures, budgets and so on (Christina, n.d.). How to market environmental effects. According to Parry, the government limits pollution emissions, they mention environmental taxes to prevent companies that produce polluting substances. In other words, the government encourages the organization. In contrast, product costs increase due to environmental taxes. This means that companies can take steps to reduce production that can increase the unemployment rate by the emissions tax. Therefore, environmental tax leads to equality of income. This is no reason to ignore our serious environmental problems. Although higher income groups can also take advantage of unexpected profits (Parry, 2002).
Competitive analysis
According to Christina, competitive analysis is that companies need to know their competitors who have the same general products and services. Businesses can use such as product cost, operational efficiency, brand recognition and market Dimension market analysis
Except for David A. Aaker's 7 primary dimensions of market analysis including market size, market growth rate, market profitability, industry cost structure, distribution channels, market trends, and key success factors, there is another analysis of dimensional market analysis. Based on Christina Callaway, market analysis dimensions can be divided into four parts: environmental analysis, competitive analysis, target audience analysis, and SWOT analysis. Market analysis is to help companies illustrate current trends in the market and can affect profitability (Christina, n.d.). At the same time, market analysis is also to determine the attractiveness in the market. Good marketing analysis can improve the organization's investment decisions accurately, they can be based on the appeal to change tactical investment.
Market analysis is to help companies to describe current trends in the market and can affect profitability for business (Thomas, 2007). This can be seen as part of an industry analysis using global environmental analysis. Companies can identify strengths, weaknesses, opportunities, and threats so businesses can define business strategies. Market analysis is also a reference to company activity, such as inventory decisions, purchases, labor, expansion of facilities and many aspects of the company.
penetration to find the difference or competitive advantage between the two same companies (Christina, n.d). How can we find a competitive advantage? Kevin (2016) says that "Anticipating and reading market needs can help business leaders take a significant step toward game change and gain a competitive edge." (Page 70). How can we maintain a competitive advantage? In terms of Richard's research, the Company should focus on maintaining a competitive advantage due to the rapid growth of global competition. Therefore, the management of business practices is the following principle to maintain a competitive advantage (Richard, 2006).
Analysis of target audience
In Christina's contribution, the target audience is the company to target their group of customers most likely to buy their product (Christina, n.d.). Groups can be classified by location, age, gender, income, ethnicity, and behavior. And people who make purchasing decisions can also be divided into the target audience. How to identify markets in accordance with enterprise centers Women markets can be classified into three types: consumer markets, industrial markets, and retail markets. Companies segment their markets, research markets, and identify why customers want to buy their products (women's enterprise centers, 2011).
Analisis SWOT
SWOTs are strengths, weaknesses, opportunities, and threats. This corresponds to internal strengths and weaknesses to opportunities and threats (Christina, n.d.). Strengths and weaknesses are internal factors that we can control. And opportunities and threats are external factors that can not be controlled by the business, but can have an impact on. When using strengths and weaknesses, businesses need to collect raw data for information. Businesses can obtain information through customer feedback, employee surveys. In addition, businesses can also identify capabilities if weaknesses or strengths, resources and processes. Opportunities and threats are external factors. Businesses can obtain information from secondary data such as environmental information, industry information and competitive data. The business purpose of using SWOT analysis is to get information from it and match each other to develop ideas and enter into a statement of purpose to form strategic development (Olsen, 2008).
Market communications have a significant impact on building and sustaining stakeholder relationships. The element of market analysis is to form strategic planning and information is responsive, intelligence formation, and dissemination (Mike, Sandra & Felix, 2005). In addition, market communications provide an information focus on customer needs and competitive advantage. At the same time, this information is spreading to the customer means the company is spreading its brand value so customers can realize the company's products. This is a channel of communication between business and customers (Mike, Sandra & Felix, 2005).
Market Segmentation
Market segmentation is one of the important ways to find a competitive advantage with its differentiation in market analysis. Market segmentation concentrates on market energy and strength to gain competitive advantage. In other words, market segmentation is a concept tool to gain strength (Thomas, 2007). In market analysis, we need a lot of market knowledge to analyze market structures and processes. Because segmentation needs to do a lot of market research so we can get information from it. Market segmentation recommends a market strategy. Market segmentation can identify customer needs and wants and develop products to satisfy them. Market segmentation can identify different products for different groups, better match between customer desires and product benefits, maximize the use of available resources, focus marketing spending and competitive advantage (karlsson, 2012).
There is no perfect way to segment markets but businesses can follow some rules like geography, demographics, psychographics, and behavior. Good market segmentation must be sustainable, accessible, actionable, measurable, and can be differentiated (karlsson, 2012).
Global market segmentation
As globalization grows, global markets become an integral part of business thinking. To explore global markets, how market segmentation can be used in global markets. There are several aspects in defining global markets, so which is more efficient to segment global markets. Some researchers mention the Cross-National and Cross-Cultural Approaches to segment global markets. To distinguish between countries and cultures, firms must identify two areas of the vertical market segment in the internal area. Another area is the external market segment that a group of countries have relation to each other and share their characteristics. Compared to cross-cultural approaches and cross-national approaches, cross-cultural approaches have cultural stability from traditional values. cultural stability has various features of national-cultural values, because of group solidarity, interpersonal harmony and so on (Agarwal, Malhotra & Bolto, 2010). However, the cross-cultural approach has challenges to environmental change, cultural change and some other unstable factors (Agarwal, Malhotra & Bolto, 2010). Therefore, the main principle in viewing a cross-cultural approach and a cross-national approach is based on perceived service quality. In global service marketing, marketing managers face international service challenges due to the lack of clarity of services, standardization of cross-border uniformity services and different preferences for customized services in different countries and cultures. Therefore, it is important for businesses to have a deep-seated quality of service in the face of different countries, regions and cultures (Agarwal, Malhotra & Bolto, 2010).
In the software market, software trends are high and low in scope. To improve the trend, there are some software market problems. Zhang (2014) mentions that "(1) What might inhibit product differentiation in this competitive market?" (2) Why is the version not present here? (3) How does the presence of a free alternative in this market have an impact on its structure?.., 589). To correct this problem, Zhang mentioned that quality competition and market segmentation apply to the software market. In Zhang's research, software companies have less developed methods of quality competition, market segmentation, and version creation. In terms of market segmentation, software companies think consumer market segmentation is useless. Therefore, although the version is the cheapest way of disseminating product information, the company still ignores it (Zhang, 2014).
The relationship between market segmentation and communication in marketing is interaction. For example, market segmentation is important in social media. There are three perspectives of supplier perspective, interaction perspective, and buyer perspective. To balance these three relationships, the business must segment well. Otherwise, the buyer's perspective and supplier perspective can not interact well may result in a loss of promotion (Oxfordlearninglab, 2009). Therefore, social media is an important method of communication in the market and market segmentation is also unnecessary before businesses use social media channels.
Apps
Literature defines several areas where market analysis is important. These include: sales forecasts, market research, and marketing strategies. Not all managers need to do market analysis. It is, however, important for managers who use market analysis data to find out how analysts derive their conclusions and what techniques they use to do so.
See also
- Market research
- Marketing strategy
- Market segmentation
References
George J. Kress, Taryn Webb, and John Snyder, Forecasting and Market Analysis Techniques: A Practical Approach (Westport, CT: Quorum Book, 1994)Source of the article : Wikipedia
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