Market analysis: what it is and how to do it, step by step
Posted: Mon Jan 06, 2025 5:39 am
Creating an online store requires time, investment, and the preparation of a market analysis . This may be easier for those who already have a physical store than for those who have never had sales experience. Learn how to do an effective market analysis .
According to a report by the Argentine Chamber of Electronic Commerce (CACE), 8 out of 10 people carry out an online search before buying offline. An interesting fact for creating your virtual store, isn't it?
But before you venture out, it is key phone leads that you do a market analysis .
We created this article with the intention of giving you an idea of what a market analysis is, what it is used for and how to create your own tailored to your business.
Let's get started.
Boost your brand by creating your own online store.
What is a market analysis?
A market analysis is a quantitative and qualitative assessment of a specific market where data such as its size, value, competition, barriers to entry, customer segmentation and purchasing habits, among other aspects, can be identified.
Why is it important to do a market analysis?
Behind every successful business, there is most likely a deep market analysis , as it is an excellent tool to understand both potential customers and the competition and, thus, be able to develop winning strategies .
Other reasons why a market analysis can be beneficial for a brand:
serves as a basis for developing a marketing strategy ,
reveals specific data , for example, the most popular products in a niche,
helps make informed , data-driven business decisions ,
provides a clear view of the competition's offering and
allows you to identify barriers to business entry and areas of opportunity.
More on this topic:
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Market segmentation: what it is and how it influences your business strategy
Image from: Market segmentation: what it is and how it influences your business strategy
Factors involved in a market analysis
Broadly speaking, we can talk about 5 main factors that can influence a market analysis ,
Size : While it is true that the larger the market, the more sales opportunities there will be, it is also advisable to have a well-defined niche .
Growth rate : Don't just stick with the current market size, review historical data to understand its evolution and whether it tends to increase or decrease.
Profitability : Identifying the profitability of a market is of utmost importance, since the performance of a business within it could depend on it.
Competition : It's not about finding a market in which there is no competition, but about finding "gaps" that your brand can fill with its offer.
Distribution Channels : It is important to assess whether there are sufficient distribution channels and identify which are the best.
According to a report by the Argentine Chamber of Electronic Commerce (CACE), 8 out of 10 people carry out an online search before buying offline. An interesting fact for creating your virtual store, isn't it?
But before you venture out, it is key phone leads that you do a market analysis .
We created this article with the intention of giving you an idea of what a market analysis is, what it is used for and how to create your own tailored to your business.
Let's get started.
Boost your brand by creating your own online store.
What is a market analysis?
A market analysis is a quantitative and qualitative assessment of a specific market where data such as its size, value, competition, barriers to entry, customer segmentation and purchasing habits, among other aspects, can be identified.
Why is it important to do a market analysis?
Behind every successful business, there is most likely a deep market analysis , as it is an excellent tool to understand both potential customers and the competition and, thus, be able to develop winning strategies .
Other reasons why a market analysis can be beneficial for a brand:
serves as a basis for developing a marketing strategy ,
reveals specific data , for example, the most popular products in a niche,
helps make informed , data-driven business decisions ,
provides a clear view of the competition's offering and
allows you to identify barriers to business entry and areas of opportunity.
Article
Market segmentation: what it is and how it influences your business strategy
Image from: Market segmentation: what it is and how it influences your business strategy
Factors involved in a market analysis
Broadly speaking, we can talk about 5 main factors that can influence a market analysis ,
Size : While it is true that the larger the market, the more sales opportunities there will be, it is also advisable to have a well-defined niche .
Growth rate : Don't just stick with the current market size, review historical data to understand its evolution and whether it tends to increase or decrease.
Profitability : Identifying the profitability of a market is of utmost importance, since the performance of a business within it could depend on it.
Competition : It's not about finding a market in which there is no competition, but about finding "gaps" that your brand can fill with its offer.
Distribution Channels : It is important to assess whether there are sufficient distribution channels and identify which are the best.