Basic content of market analysis

The market is always changing and businesses have been closely following the changes to the strategy, tactics and quick fit. Market analysis is one of the reasons first and foremost to business planning. And whether you're a beginner business or reconsider existing business, you are required new analysis of the market, at least once / year. 

You need to search the market as the market potential market, rather than the current market. Your target market is much larger than the number of people you reach. It's the people that someday you can reach or they seek to come to you. Your market analysis should include the following basic content:

1. Finding information

You can find useful information to perform a market analysis from different sources. For example, you may need information about local that you can earn from the relevant authorities. Or you can find the information in your market through the website. You may also need to seek information from the statistics, survey results ...

In fact, not all the information you need can be announced publicly, and sometimes you have to go the way round, must have certain computational skills. Sometimes you have to extrapolate information from many different sources to get the information you need.

The results of market research before introducing a product / service depends largely on the new techniques and methods undertaken. This requires a professional competence and long experience in the field of your marketing. There are many different ways to implement market research activities, but the majority of companies today often use one or a combination of several methods in group 5 basic methods: surveys, focus groups , personal interviews, observation and experiment.

1. Survey and Survey

Based on questionnaire surveys intelligent and outspoken, you can analyze a sample group of customers represents the target market. Customer group sample sizes greater, so are the results more reliable and realistic they were. - The direct surveys (In-person surveys) are often the direct interview conducted in public places, eg shopping centers, amusement parks ... This approach allows you to introduce consumers with new product samples, promotional marketing and gather feedback instantly. The surveys of this type can ensure the response rate of over 90%, but the drawback is quite expensive because they must hire a large number of staff to do this. - The survey by telephone (Telephone surveys) will be somewhat more economical than direct forms of investigation. However, because people often "allergic" to the telemarketing methods, should attract people to participate in telephone surveys increasingly difficult. Telephone interviews usually have the response rate of about 50% to 60%. This method is optimal for companies like Microsoft, Ford, Dell Computer complete contents of the questionnaire. - The survey by mail (Mail surveys) is the way requires less cost to reach a large number of customers. This method is much cheaper than direct surveys and telephone surveys, but the response rate you get only from 3% to 15%. Although the response rate is low, but the surveys by mail is an appropriate choice (financial terms) for small companies. In Canada, the rate of using this method accounted for 6.2%, 7% in the United States and especially countries with high levels of education, such as Denmark, Finland, Norway, Sweden, Netherlands ... This very popular method .

But in Africa, Asia, the survey by mail is difficult to implement because most of the population lives in rural areas. In my experience, using the mail for the investigation was a very successful method in the study of international market, especially in the industrial sector. - The online surveys (Online surveys) often brings the response rate is difficult to predict and the information is not reliable, because you can not control all the feedback. However, the online survey conducted by very easily factor in terms of cost savings. Large corporations often combine multiple methods of investigation, different probe to have the most accurate information about the market when the product is launched. For example Apple always has a department responsible for investigating market activities. This department must make quarterly survey strategy and always new additional client list will be investigated.

2. The focus groups (Focus groups)

In focus groups, the moderator will use a series of questions or topics prepared to lead discussions among a group of people. This activity was held at neutral venues, often accompanies the video equipment and the observation room with the mirrors. Each such discussions usually last 1 or 2 hours, and must study at least three new groups get reliable results.

3. Personal Interviews

Like focus groups, personal interviews include many open questions and no certain structure. The interviews usually last for about an hour and was recorded. Personal interview requires you to have a force interviewers have good marketing skills. Depending on the research project which interviewers have to meet different requirements. For example, the corporation specializes in manufacturing Cealed French perfumes have three types of interviewer: interviewer for a specific period, an interviewer for the time of emergency and interviewers do seasonally, according to work. Interviewing quite prevalent in the developing world, but it is also quite popular in Switzerland, Portugal ..... Besides the interview at home, you can organize interviews at a fixed location such as specialized office for an interview. In addition, the interview can be done in the kitchen, in the garden, on the street or in the supermarket. This method accounts for 15.2% in Canada, in the United States is 19% and is often used in the developing world, where most of the population live on agriculture. Market research methods focus groups and individual interviews will provide more useful data than methods of investigation and exploration. Although market research results from focus groups and individual interviews is not really reliable, because it does not represent a large number of consumers, but these methods will help you get a look deeply about customer behavior and there is also a great way to lift the veil on matters relating to the development of products / services.

4. Observe

Three forms mentioned above are just giving you some evaluation of customer behavior at a certain time. But when you observe the actions of the client is recorded in camera systems located in stores, at work, or in their own home, you can clearly see how they purchase and use of products / services of you. This method helps you to get an accurate synthesis of the normal routine and structure of customer shopping. 5. Experiment Placing new products in some stores to test customer response in terms of actual sales can help you edit and finishing products, adjusted or improved prices better quality. Small businesses should strive to build relationships with all local retailers and shopping sites to get ready for their new products to test the market.

2. Market Segmentation

In analyzing the market, you should divide your target market into different segments. For example, a company producing personal computers, you should split the market segments like personal computer use in the home, use in enterprises, educational institutions, public agencies country...

The market share target different segments of the company to target the specific market needs more promotion measures and more effective approach, more consistent pricing.

3. Predict the size and growth prospects of the market

You need to measure and quantify their market. For example, if the local families as part of your target market, you need specific quantified (from the total population, the estimated number of people will buy the product / service of you).

The prospects of growth of the market, you need to make forecasts about growth of that market. The market will go up or down, with what speed in years? The market forecast must start from the total number of people can buy the product in each market segment, then the expected percentage change in 3-5 years.

4. Identify market trends

You need to understand what is happening in your market. These trends and fashions do you think will affect your market segment? For example, if you sell cars, you need to consider the reaction of people before the high fuel prices, concerns about environmental pollution, the relevant domestic policies ...

5. Conclusion

Only the market share - market size; the share of research products and major competitors; product positioning, business and competitors on the market

Assessing the potential of the product - the maximum revenue can be achieved at different prices, the difference between acceptable prices, decided the most competitive prices for products

Market characteristics and trends (this study requires research conducted fairly complex) - the structure of the market (consumers, competitors, suppliers, the interaction between objects this), forms and methods of sale, business practices and other conditions, the current size and market potential, customer demand for products, the development history and expectations market

Note: You can use the model of M. Porter 5-pressure environment to analyze your industry will clearly understand and more effectively. Five pressure that customer, supplier, product replacement, the competitors and potential competitors.