A Marketing analysis is a documented investigation129 views 2010-09-06 06:18 Tags: analysis Marketing documented
A Marketing analysis is a documented investigation of a Market that is used to inform a firm’s planning activities particularly around decision of: inventory, purchase, work force expansion/contraction, facility expansion, purchases of capital equipment, promotional activities, and many other aspects of a company.A large number of market analysis techniques are related to sales forecasting, others are more general techniques for analyzing markets. The literature defines several areas in which market analysis is important. These include: sales forecasting, market research, and marketing strategy. The goal of a market analysis is to determine the attractiveness of a market and to understand its evolving opportunities and threats as they relate to the strengths and weaknesses of the firm.
* Market size
* Market growth rate
* Market profitability
* Industry cost structure
* Distribution channels
* Market trends
Important inflection points in the market growth rate sometimes can be predicted by constructing a product diffusion curve. The shape of the curve can be estimated by studying the characteristics of the adoption rate of a similar product in the past.the average profit potential for a market can be used as a guideline for knowing how difficult it is to make money in the market. Michael Porter devised a useful framework for evaluating the attractiveness of an industry or market. Changes in the market are important because they often are the source of new opportunities and threats. The relevant trends are industry-dependent, but some examples include changes in price sensitivity, demand for variety, and level of emphasis on service and support. The key success factors are those elements that are necessary in order for the firm to achieve its marketing objectives.
A few examples of such factors include:
* Access to essential unique resources
* Ability to achieve economies of scale
* Access to distribution channels
* Technological progress