Market is the arena where buyers and sellers interact to facilitate trade. It may be physical, such as a bricks-and-mortar store, or virtual, such as an online trading platform. It also refers to an economic system where prices are determined by supply and demand rather than by government-imposed restrictions, like a price floor or ceiling.
A comprehensive market analysis is essential for any business planning to launch a product or service. It provides insights into the size of an industry (how many customers and businesses are there) and the strength of customer demand. It identifies gaps in the market where your company can thrive, and it examines your competitors’ strengths and weaknesses.
To conduct a thorough market analysis, you’ll need good data. It’s important to get this data from reliable sources, such as government statistics and subscription-based research tools. It’s also important to triangulate your data, comparing it across multiple sources to verify accuracy.
The market analysis process can be time-intensive, so it’s important to break it down into manageable chunks. This will ensure that you can tackle the task without sacrificing other areas of your business.
To begin, focus on your key audience segments. You need to know who they are, what their purchasing triggers are, and how much they’re willing to pay for your solution. Reviews and comments on social media and industry forums provide insight into your target audience’s real pain points and their desired outcomes.