2. Market Analysis
Market 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.
3. 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
4. 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.
5. 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.
6. Market Targeting
Is 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
7. 3 General Factors of
market segment
Segment Attractiveness
Segment Size and Growth
Company Objectives and Resources