Market analysis is not a new concept, but many businesses still do not understand and fully grasp the importance of this activity. It is the act of collecting data directly and indirectly through reliable sources, then processing, analyzing, and making conclusions and recommendations about a market. Common forms of analysis are market overview analysis, competition analysis, customer behavior analysis, value chain analysis, etc.
By bringing these forms together, the business market analysis gives a business all the information a business needs to make the right strategies, such as high-margin ones like the one that’s on the market like discount codes, or promotions strategy. This reduces risk and ensures success. This article analyzes the important roles that business market analysis plays in business development.
Identify potential markets/segments
In business, which market to focus on exploiting and developing, which segment is a big question. Comprehensive market analysis can help you see the big picture. In it, you will see the total market value, the changing trends in supply and demand of a product or a group of products, current consumption trends, which markets or segments are promising, worthy of investment, and committed to development.
In particular, finding a niche will allow your business to break through to the top of this market, and thereby create leverage for your business to go further.
CouponUpto is an excellent example demonstrating the importance of business market analysis. With the explosion of the e-commerce market, as well as the influence of Covid19, Couponupto has really made an impact on users, providing a safe and economical shopping experience.
“To know oneself is true progress.”. That’s the case in battle, and this philosophy still holds true in business. Competitor research helps us understand how fierce the competition is today and learn from our competitors’ mistakes and successes. At the same time, thanks to that, we can also monitor and learn their operational plans and promptly make appropriate strategies.
Moreover, the business market analysis also helps businesses realize where they are on the big map of the market, what impressions and comments customers have, their own strengths and weaknesses, etc. Not all businesses have the ability to objectively evaluate themselves, only when viewed from the perspective of customers, partners, or market analysis companies, can we see that our business is lacking. What needs to be overcome and what strengths should be promoted.
Capture customer psychology and approach the market wisely
Along with socio-economic development, customer psychology is changing rapidly and complicatedly. However, such changes are not unanticipated. Business market analysis will help you see hidden truths, such as why customers choose one product over another, what influences their decision to their preferences, selection criteria, and how they search for product information.
Market analysis helps businesses understand what customers want and need, thereby coming up with new product ideas, or how to position and approach the right customer psychology. As a result, businesses will plan and execute to receive the most positive response from the market.
Remove obstacles, develop practical and effective strategies
In addition to the information mentioned above, the business market analysis also helps businesses look at each issue in detail and give a step-by-step approach to business development strategies. Most of the questions like where to put the production plant, how to develop agents and distribution channels, which partners to look for, how to advertise and deliver products to customers, legal procedures necessary, etc… can all be answered by market analysis.
Based on the results of market analysis, businesses can focus their resources on a certain segment with carefully planned and researched activities to bring the highest efficiency.
Reduce the risk of failure
The business market analysis not only shows potentials and opportunities but also identifies risks in the industry. When building a strategy based on thorough market analysis, the risk of business failure is significantly reduced.
Market analysis helps your business see many aspects, from a change in customer tastes that makes the product no longer suitable, the possibility that a new product can replace the current product, to innovations in government policy, economic events, and more.
Market analysis has international standard tools and frameworks such as PEST, PESTEL, 5 Forces to help you fully monitor all aspects, to ensure you will not miss any opportunity or risk. Businesses can experiment with these tools in combination with some typical strategies such as providing discount codes, discount programs, and coupons, stimulating demand, and optimizing revenue at the right times.
Thus, if you know how to analyze the market correctly, you will easily find the most potential market to invest in, analyze how competitive the competition is, learn the best way to approach customers, remove problems and solve existing problems, reduce risks and help businesses come up with strategies with a high probability of success. With such great benefits, this is an important and indispensable activity for all businesses, especially startups that need market analysis.