5 Important Aspects of Market Analysis You Need to Know
An important part of any business planning is a thorough market analysis. By carrying out this analysis, a business is expected to better understand its market
Market analysis is a qualitative and quantitative assessment of a market. This looks at market conditions more deeply, both in terms of volume and value, various customer segments and their buying patterns, competition, the economic environment, and barriers to entry.
To be able to find out these two things, analyze the following aspects:
- Demographic segmentation
- Target market
- Market needs
1. Demographic Segmentation
Demographic segmentation breaks down your market into specific groups that are differentiated by personal attributes such as location, age, gender, education, occupation, or income. This is done to help you understand consumer behavior so that the marketing messages you will send will be more personalized.
2. Target Market
After segmenting by demographics, you will get a group of people who have similar characteristics. The group that has criteria according to your wishes is the main target market.
For example, if you sell jewelry, you can target the general market, or focus on the high-end and low-end segments of the market. This is relevant if your market has clear segments with different product demands. Low-end consumer groups tend to look for jewelry at low prices, while high-end consumers are more concerned with exclusivity and prestige. These two groups certainly need different marketing approaches.
3. Market Needs
You must understand in detail what drives the demand for your product or service in the market.
For example, take a look at coffee shop franchises. One of the drivers of coffee is the consistency of taste. Coffee purchased from a coffee shop (franchise) is not always better than coffee from other non-franchised coffee shops (local shops). People know that coffee from a franchise shop will taste the same everywhere. This is the reason why people tend to buy coffee that already “has a name” rather than buying coffee at a local shop.
If taste consistency is what the market needs, how can local coffee shops compete with franchised shops? The answer is simple, better coffee, and a compelling promotion.
The purpose of this point is to know who your business is against. Here you should be able to learn what their strengths and weaknesses are. The main idea is to analyze your competitors and find weaknesses that your company can later use to position itself in the market.
One way of doing the analysis is to compare your competitors in terms of the factors that drive demand for products in the market (price, quality, additional services, etc.) and present them in a comparison table.
Regulation is related to rules that can have a direct impact on your business, both in the short and long term. Some of the regulations that are generally directly related to business include regulations on taxation, import-export, construction of buildings, employee management, and many more.
This is a discussion of 5 important aspects of market analysis that you need to understand. For your business to grow, don’t forget to advertise through the Froggy Ads service, you can start by advertising your products so that later you can increase visitors on your online business portal. Froggy Ads is an online advertising service that can help you control all your product campaigns. helps you target your desired marketing target and gives you many options to market your product.