Market Analysis

What is market analysis?
Methods of market analysis
Main stages of research
Common mistakes in market analysis

What is market analysis?

Market analysis is a comprehensive study of the interaction between sellers of goods and services and consumers in a specific niche. It allows businesses to determine which products and services are in highest demand, which distribution channels to use, and which target audience to focus on to achieve maximum profit. Typically, the research is conducted before launching a new product, but it can also be beneficial for existing companies looking to recover from a crisis or increase their revenue.

The history of market analysis dates back to the early 1920s in the USA, when a boom in radio advertising occurred. At that time, advertisers began to realize that different groups of listeners pay attention to the radio at different times, which initiated a new direction in marketing research.

Not only marketers engage in market analysis. Analysts, sociologists, economists, and business strategists also conduct such research to assess the situation in the relevant segment. Depending on their specialization, they study market dynamics and conditions, pricing, principles of goods distribution, and other key indicators.

Methods of market analysis

Depending on the research objectives and product characteristics, various methods are used for analysis. They can be divided into two main types: primary and secondary data.

Primary and secondary data

Primary data: This is information collected directly by the company. For example, through focus groups or customer surveys.
Secondary data: This data is drawn from existing sources, such as reports, statistics, or research results.

Qualitative and quantitative research

Quantitative research: Focused on obtaining precise data in numerical format. For example, through surveys with ratings.
Qualitative research: Helps understand the reasons behind audience behavior and preferences. Includes in-depth interviews and focus groups.

Main stages of research

The market research process can be divided into several key stages:

Setting objectives: Defining the goals of the research and selecting appropriate analysis tools.
Industry analysis: Assessing current demand for products and services in the chosen niche using official statistics.
Studying the target audience: Gathering information about the interests and needs of potential customers.
Competitor research: Evaluating competitors' offerings, pricing policies, and marketing strategies.
Identifying opportunities and risks: Using methods such as SWOT analysis and PEST analysis to identify strengths and weaknesses of the business.
Data analysis and summarization: Systematizing the information gathered and visualizing it in the form of graphs and charts.

Common mistakes in market analysis

Despite the importance of market analysis, many companies make mistakes that can negatively impact results. Here are some of them:

Ignoring the interests of the target audience: Using only demographic data without a deep understanding of needs.
Inappropriate methods: Errors in demand analysis when not considering all influencing factors.
Ignoring market dynamics: Assessing only the current state without studying changes in the past.