Market Analysis

How do you determine if there are enough people in your market who are willing to purchase what you have to offer at the price you need to charge to make a profit? The best way is to conduct a methodical analysis of the market you plan to reach. The market analysis presents your conclusions regarding external market factors that will affect your business. It examines the totality of the business environment in which you will compete.

Topics addressed in the market analysis include the existence and type of competitors, the characteristics of your target customers, market size, distribution costs, trends in your industry and in the market in general, etc. Much of the information that will be included in the market analysis will be derived directly from the SWOT analysis that you performed early on in the planning process. The purpose of the market analysis is to set the stage for presenting your marketing strategy. That strategy sets forth your plan for successfully competing in your selected market.