Analyzing the Market Environment

Conceptually, all of marketing is based on the idea that you must thoroughly know the environment in which your business operates in order to successfully promote and sell your product or service.

You may have developed a unique business idea, but why do you believe your idea will be successful? Is it based upon discussion of the idea or presentation of a prototype product or plan to friends and associates? If your business has been operating for a while, you've probably thought about branching out with new product lines, side businesses, or additional locations. How can you be sure the odds are with you as you pursue new directions?

Ultimately, your idea must fulfill a need for your buyers and must do so in a way that's somehow superior to the competition, however you define it. If you want to be sure that your idea will do these two crucial things, you need to know as much as you can about the following:

• your competitors
• your target buyers
• the marketing environment
• future market growth