Answer to Question #303252 in Marketing for Hutchii

Question

Conduct a market need analysis in the community in preparation for a small business venture.

Answer 1

Before starting a business, one needs to do thorough research. Otherwise, the business could quickly sink. If one wants to stay afloat in the business world, he/she needs to know how to conduct a market analysis. A market analysis is the process of gathering information about a market within an industry. A market analysis looks into the size of the market both in volume and in value, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation. A market analysis is very complex, but it’s necessary if a one wants to lead business in the direction of success. Below are some steps to follow when conducting a market need analysis;

• Determine the purpose of the study- Businesses might conduct market research so that they may use them to assess business risks for example; threats, reduce issues, or create opportunities.
• Look at industry’s outlook- Outline the current state of the industry. Include where the industry is heading using benchmark such as size, trends, and projected growth.
• Identify target customers- Determine who potential customers are. Understand fully who the customers are and where they come from.
• Compare competition- Make a list of all the main competitors. Go through each one on the list and determine their strengths and weaknesses (SWOT analysis). After conducting the SWOT analysis, rank them from most to least threatening. Then, determine start-up’s advantages and marketing position.
• Gather additional data- one should gather as much information as he/she can. The more information one gathers and have, the better off his/her business will be.
• Analyse findings- After analyzing the market, take time to take a look at the findings. Lay out all of the research and organize it using different sections.
• Put analysis into action.

Conducting a market need analysis helps one understand;

• Who are the potential customers?
• What are the customers’ shopping and buying habits?
• How large is the target market?
• How much are potential customers willing to pay?
• Who are the competitors?
• What are the competitors’ strengths and weaknesses?

Conducting a market analysis may seem complex and hectic, but at the end of the day it is worth the trouble.