How to Conduct Market Evaluation For Your Business
Market evaluation is finding out whether the marketplace can accommodate your business or whether your business can succeed in the business environment. While making plans for starting a new business or an existing business venturing into a new market a market evaluation is very important to avoid market shocks. Market evaluation helps you concentrate only on startups with the highest potential to succeed.
- 6 Benefits of using Business Intelligence to your Business.
- Reasons Why Kenyan Businesses Struggle with Content Marketing.
- How to Improve Manufacturing Productivity in your Company.
A marketing evaluation and analysis can reduce risk, identify emerging trends, and help project revenue. You can use a marketing analysis at several stages of your business, and it can even be beneficial to conduct one every year to keep up to date with any major changes in the market. A detailed market evaluation will usually be part of your business plan, since it gives you a greater understanding of your audience and competition, helping you build a more targeted marketing strategy.
What Businesses should consider when conducting a market evaluation.
- Urgency – When conducting a market evaluation, businesses should consider whether there is urgency, how do people badly need their products and services.
- Market size – To determine how successful your business can be, you need to have such information as market size, the number of customers, the barriers to entry, the industry value chain, and the level of competition.
- Pricing potential – As a business owner, you should be able to know the highest average price that the targeted customer is willing to pay for your products and services.
- Speed to market – Put into consideration how quickly you can be to supply the market in times of high demand for your products, you should plan to avoid shortages of supply.
- Evergreen potential – Once the initial offer has been created, how much additional work will you have to put into it in order to continue selling?
There are six steps when conducting the market evaluation. Conducting market evaluation is not complicated it just needs a lot of dedication.
- Determine your purpose.
There are many reasons why you will be conducting a market evaluation as a business, it is important to stick to your purpose Start by deciding whether your purpose is internal like improving your cash flow or business operations, or external, like seeking a business loan. Your purpose will dictate the type and amount of research you will do.
- Identify your target market.
Not everyone is going to be your customer, it will be a waste of time trying to get everyone to like your product. When conducting a market evaluation decide who will be your target market. You want to understand your market size, who your customers are, where they come from, and what might influence their buying decisions, looking at factors like age, gender, location, occupation, needs, interests.
- Explore your business environment
Understanding the general business environment gives a clear picture of a potential influence on your business performance. Before entering the marketplace, you need to be aware of the factors that can impact your business, such as government regulations, trade policies, social and cultural norms, and technological developments.
- Understand your competitors.
As a business owner or someone who wants to venture into the business it is very important to understand your competitors, you should be aware of other businesses that offer similar products as you. Market research will enable you to conduct a SWOT analysis for each competitor and see what they have you don’t have and vice versa. This will help you to stay ahead of the market.
- Gather additional data.
With marketing evaluation, information is your friend, you can never have too much data. It is important that the data you use is credible and factual, so be cautious of where you get your numbers, some sources might be giving too good to be true numbers and facts about the market. Some of the reliable sources include trade journals, market surveys and questionnaires, and finally, your own SWOT analysis.
- Analyze your data.
After you collect all the information you can and verify that it is accurate, you need to analyze the data to make it useful to your business. Organize your research into sections that make sense to you, but try to include ones for your purpose, target market, and competition.
- Put your analysis to work.
Once you’ve done the work to create a market analysis, it’s time to actually make it work for you. Internally, look for where you can use your research and findings to improve your business. Have you seen other businesses doing things that you’d like to implement in your own business? Are there ways to make your marketing strategies more effective?
- 5 Tips on How Diversity in Team will Drive Business Sucess.
- Ways Small Businesses Can Improve Communication in their Business Environment.
- Steps to Guide you in Managing your Manufacturing Business.
Businesses need adequate planning and study of the market before venturing or introducing a new product into the market blindly, all you need as a business owner is to identify your purpose, your target market, understand your competitors, gather data from reliable market sources, analyzing the data and finally putting your analysis to work, all this will save your business from market shocks.
Do you have a groundbreaking story you would like us to publish? Please reach us through our email news TIPS to email@example.com or WhatsApp +254712410460. You can also subscribe to get the latest news article on www.msamag.com
There are no commentsAdd yours