Marketing Plan - Market Analysis Components
Marketing Plan - The market analysis, with its component parts, locates your business within existing and future markets. Your plan must demonstrate intimate knowledge of the targeted industry and evaluate the competition. This section of your business plan presents a market-research survey, locating your business in the market environment. It also determines whether the market is sufficient to support the business. It analyzes the following aspects:
Market characteristics and market segmentation
- Briefly describe here the market you are in or the market you are planning to enter: product coverage area, environment, additional product area if necessary and potential customers.Analyze the market also from a chronological perspective:
- Provide a historical market survey of the products and producers;
- Analyze the current status of the market — needs and trends;
- Forecast market growth.
- Define the prospective segments of your market: fields of interest, reasons for the interest caused by your products or services in particular market segments.
Market analysis and its component parts
- Participants in this industry — seek out the principal representatives in the market of your industry.
- Distribution patterns — analysis of the principal means of distribution of the specific products or services to the customer.
- Competition and buying patterns Identify the main competitors (direct and indirect) and the principal factors which determine purchasing choices of the product or service. Here you should analyze your specific target market needs and the means of coverage, identify unexplored or poorly exploited market niches and your opportunities on these territories. Analyze the strengths and weaknesses of the offers of your competitors by comparing their offers to yours.
- Will your sales reach break-even point?
- Is the market large enough?
- Are your products or services competitive enough to break into the market?