A market analysis is the process of learning everything you can about your target market. It’s like doing your homework to prepare yourself before launching and growing your business.
And conducting a market analysis has many advantages. For example:
- You can estimate the total size and mobile phone numbers potential of your market to determine whether your business will be viable and profitable.
- You can identify your target customers and their needs and preferences. This will help you develop the right marketing strategy to attract them.
- You can analyze your competitors and their strategies so you can formulate plans to outperform them and increase your market share.
In short, market analysis helps you grow your business faster and smarter.
But how do you conduct market analysis? And what are the best tools and methods to use?
Let’s find out.
How to do a market analysis
Follow our seven-step process to analyze any market.
1. Determine the purpose of your analysis
Take a moment to ask yourself why you the best obsidian plugins are doing this analysis.
Is it because you are launching a new product and need to assess the entire market landscape?
Or maybe you’ve already launched your product, but now you’re looking for the best channels to market it.
Your purpose can be related to anything you want to learn about. And it will shape your entire analysis.
This is the best way to achieve your goal:
- Grab a pen and paper (or open a new Google Doc)
- Write down why you want to do a market analysis. Don’t think about it too much, just write whatever comes to mind.
For example:
You are doing a market analysis to launch a new accounting software. And your goal is to find answers to these questions:
- How big is the accounting market and is there a business opportunity?
- Who are your ideal clients and what are their unique characteristics?
- Who are the existing players in the market and how do they position themselves?
- What are the best ways to reach and engage your potential customers?
Based on the analysis, you will decide the best way to launch and grow your business.
2. Research the big picture of your market
Now that you are clear about why you are doing a market analysis, it is time to get a bird’s eye view of your market using a market research tool . And gather information such as market size, competitors, opportunities, etc.
Use Semrush’s Market Explorer tool to do this .
Open the tool and select the ” Analyze Category ” tab.
Next, choose your industry from the drop-down menu and click ” Research a Market . ”
You will get a high-level overview that addresses:
- Market consolidation : A low america email list level of consolidation means that there are many smaller companies in the market, and you have a good opportunity to enter this space.
- Market Traffic : The total amount of potential website traffic in your market. The higher the number, the better.
- Market sizeis the total number of potential buyers in your market
