Breaking Down Your Market Analysis
By Katie Marcus
Published 12/31/1969 | Marketing
Before jumping into your marketing strategies, and perhaps even before you start putting up your business, you are going to have to look at your marketplace and analyze the things that could work best for the overall success of your business. However, what are you supposed to be looking at and what is going to work for your company?
First, look at the size of your market. Whether you plan to limit yourself to a niche market or go for a broader market, you still need to be aware of the size of the market and the customer base. This will not only be information on how large your company will be able to get, but even what type of marketing might work best for them.
A small customer base might heavily favor the use of things like newsletter printing to form a small, tight community, or posters in key locations you know a large portion of your customers go to. This does not mean you cannot use things like newsletter printing with larger markets, but it might be more beneficial in a smaller niche market like this.
Next, you need to look at your room to grow. Large markets will likely have less growth potential, but the original market is large enough to sustain you. Niche markets will vary greatly. Some niche markets can explode in growth into a major market, while others are going to remain stagnant and small all the time. You have to be sure you know what other people have done in the market, and how many additional people you think you can get interested in your products.
Related to this consider the profitability of the market and whether or not you can sustain yourself on it. Part of this is the market size, but part of it will also be the type of products you are selling and the cost. Consider if you are selling a lot of smaller, cheaper items, you will likely need a larger customer base to sustain you. Large expensive items might benefit more from a more focused market.
Finally consider the various marketing trends currently in place before you start up your own marketing. For very new markets, there might not be much in place yet, but this is not very likely, and most markets have plenty of other companies who have been doing business in them for years. Look at what they have been doing, what success they have had, and what you can improve on. If they are, using postcards figure out why and how you can do it better than them.
This is the basic information that any marketing plan should have in it. You have to first look at the market and understand why it is what it is before you make any steps. You cannot expect to successfully market to something you do not know very much about.