When does a business need market analysis? See our infographic
What is market analysis used for in business?
Market analysis helps experts, managers and entrepreneurs make important decisions by giving them an in-depth understanding of the market, competitors and customers.
Market analyses have a very wide range of uses in business. They help experts, managers and entrepreneurs make important decisions in many different areas of their companies' operations.
Market research and analyses give you an in-depth understanding of each of the three areas of a company's environment: the market, competitors and customers. They can also deliver important conclusions both about the company itself and about its brands, operations, strategies, products or services.
Market analyses are also practical. They involve gathering and verifying market data, analysing the information and drawing reliable conclusions from it, and then turning this knowledge into practical recommendations.
When does a business need market analysis?
Market analysis is needed, for example, when launching a new product, entering a new market, preparing a feasibility study, business plan or grant application, or increasing sales.
You want to get to know your industry, competitors and customers better
Information about what is happening in the market matters for literally every business decision, even an operational rather than a strategic one.
Which supplier should you work with? How should you adapt logistics to customer preferences? How should you set the budget for advertising campaigns? Which innovations or tools should you invest in?
You are launching a new product or service
Entering the market with a new offering can bring higher profits if product design, manufacturing, distribution and marketing are based on reliable, verified market data.
Which technology should be used in production? What price will be optimal for each version of the product? Which distribution channels will be the most profitable? Which marketing channels should be used?
You are preparing a feasibility study for a new investment
A due diligence market analysis helps you see the full picture of the market, including entry barriers, success factors, potential customers, key players and market interdependencies.
Which market segments are the most profitable? Which permits, licences and certificates need to be obtained? What made the industry leaders successful? And what led other companies to fail?
You are taking your current offering to a new domestic or foreign market
Before deciding to expand into new markets, you need to understand them in depth so that you can prepare an effective business development strategy.
Is there still room in the market for a new player? What are the market growth forecasts for the coming years? What are the barriers to entering the market? What are the costs of exiting the market in the event of failure?
You want to increase sales and marketing effectiveness
When preparing development plans for marketing and sales, you should get the most detailed information possible about competitors and customers, among other things.
What are competitors' promotional activities and advertising budgets? Which communication channels do potential customers use most often, and how do they use them? What does the purchasing process look like?
You are preparing a business plan and documentation for an investor
With a better understanding of the current and forecast situation in the industry, you will prepare more convincing calculations and business plans and find it easier to win investors over to your idea.
What is the current size and value of the market? How will the market develop in the coming years? How will consumer preferences and needs change? Which global trends will dominate the local market?
You are preparing a grant or subsidy application
When you apply for, implement and settle grants and subsidies, it is very important to rely on hard data, for example from market research and analyses.
How can you prove that the project will generate profits? Which market growth estimates should you use? What does the competitive environment look like now, and what changes can be expected in the future?
What are the benefits of market analysis for a company?
Market analysis helps assess the chances of success of a new concept, provides hard data for a growth strategy, helps convince investors and makes day-to-day activities more effective.
Market analysis brings companies real benefits at every stage of the life cycle of a company, brand and product. It helps assess the chances of success of, for example, a new concept, an innovative offering or a recently discovered market niche. It provides the hard data needed to design a growth strategy, e.g. a sales and marketing strategy or a strategy for entering foreign markets. It helps prove to investors and to institutions offering subsidies and grants that a given idea will generate profit. It helps increase the effectiveness of day-to-day activities by identifying growth barriers, success factors, new markets or customer segments.
Need data on your own industry in Poland?
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