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Market Analysis:

 Starting a new business or launching a new product line can be a daunting task. Starting with a comprehensive market analysis though can help to determine the target market and the need for the concept. Once this is understood, it will be easier to develop a marketing plan without wasting valuable dollars trying to get into an already oversaturated market. This summary will also help to outline a strategic plan for bringing the product or service effectively to consumers.

Knowing the Competition:

 By analyzing any competition on the market, it will give an idea of what marketing they are doing, what is working and who the target market is. Examine the direct competitors and any indirect competitors. Direct competitors are the ones who are selling the same product, while indirect competitors are business that are selling a similar product that customers might choose as an alternative. Understanding the strengths and weaknesses of competitors’ marketing plans will help to formulate new ideas that may increase the company’s competitive position.

Figuring Out the Marketing Mix:

 Frequently referred to in marketing as the “the four P’s of marketing,” the marketing mix will help to create an effective marketing plan. These four P’s are Product, Price, Place and Promotion. Once the product has been decided on, a price will need to be established. Then decide on the best location to sell the product. If the business is selling snowboards in a sunny beach town, there will probably not be much of a market. Finally determine what types of promotions will encourage potential customers to try the product.

Putting Together the Market Analysis:

 The market analysis will be an ongoing effort to show how the company or product is doing over time. It should address tracking and data about the product line’s sales. Any future product lines or line extensions should also be outlined. There should be a competitive review and ideas on how to position the company better. In addition, business owners should consider how they plan to grow the demand within the industry. A thorough market analysis will be a blueprint for how to run the business. It is important to review the plan periodically and make changes when necessary.

The Unique Selling Proposition (USP):

 Developing the market analysis provides the unique selling proposition (USP) of any company. By creating a selling strategy that is demonstrably different, it will make the business stand out from the crowd and give you the core for any marketing plan. Once it has been decided what this product brings to the market, it will be easier to figure out what drives buyer behavior. The totality of a market analysis will be a valuable tool for growing the company and increasing revenue.

 A comprehensive plan will pinpoint consumer’s needs and develop a way to reach this target market. The market analysis should clearly communicate to readers the market segment, the market forecast and the target market focus. This will be the foundation for any marketing plan. Focus on why the business is unique and how it will be set apart from other competitors.


Sales analysis is necessary for important reasons:

  •   Identify the most profitable customers and their demographic characteristics.
  •   Identify the best-selling and most profitable products.
  •   Highlight market trends and buying patterns (e.g., geographic)
  •   Calculate profit by product
  •   Find which areas of business are performing
  •   Indentify salesforce efficiency
  •   Supply business graphics for big-picture display reports
  •   Measures actual performance against forecasts, thus improving forecasting technique
  •   Helps to shape marketing efficiency



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