Post by lizaseo11 on Nov 9, 2024 7:36:06 GMT 1
Before starting a new business and online website promotion, it is important to determine the main indicators of the project as a whole. Such market analysis will help to see the capacity of the niche, find out the level of demand, identify competitors, assess growth opportunities and prevent economic threats. In addition, the promotion strategy should take into account geographical factors, the economic situation, cultural characteristics of consumers, political stability or instability.
For business development, it is important not only to develop online business promotion, but also to minimize risks. This is especially important when you plan to attract investments to your project.
Obtaining basic information for analysis
The key characteristic for entering the market is its capacity. What does this term mean? This is the ability of consumers to buy a certain amount shopify website design of your goods or services in a certain period of time. To do this, you need to get two initial indicators - the number of target audience and the consumption rate of this type of product for the selected period. Thus, the market size is the product of the number of consumers and the consumption rate. This indicator will allow you to specify the maximum possible demand in order to avoid overstocking and returns.
Why do you need consumer market analysis?
The development of a promotion strategy is based on knowledge of the target audience, decision-making algorithms, and other factors. It is necessary to conduct a psychological, demographic, social and geographic assessment to understand the whole picture. After the stage of collecting information and analyzing it, you can move on to segmenting the target audience. To do this, the market is divided into separate groups that are united by similar characteristics. This includes: purchasing power, income level and requests, decision-making algorithm, etc.
What data will you get after market analysis?
After conducting a market analysis, you will receive the following indicators:
Information about the state of the industry in your region/country,
Consumer data and target audience profile,
Understanding the strengths and weaknesses of existing competitors,
Development prospects of your project taking into account the market capacity,
Definition of economic dangers and risks.
How is market analysis carried out?
There are several methods that allow you to obtain information. The choice of marketing research and analysis methods should be based on the objectives of its implementation. That is, the company's manager must understand why information is collected and what data is important to obtain. The main areas of market research are divided into general and marketing.
General market research allows you to study the demand for a product or service, analyze pricing issues, growth/fall trends in demand. This method allows you to identify the most attractive areas for investment, if such a task is set. When developing a promotion strategy, statistical data analysis is the basis for developing a work algorithm.
Marketing research of the market situation is aimed at studying a certain area of business, in which the main emphasis is placed on studying behavioral factors, the market situation and competitors' positions. Such analysis allows developing short-term and long-term forecasts, building strategies and making informed decisions.
Rules of study and analysis of the industry
Usually, business is conducted in a specific region or several regions. It is more difficult to master large areas at once, since this path will require more marketing and advertising costs. Now in online trade, the boundaries between cities and countries are erased, but in any case, there are economic differences. It is necessary to identify:
specific market features and clarify the starting positions of your business.
what customer needs your product or service solves.
volume of goods/services consumed.
the dynamics of growth or decline in demand due to seasonality and other factors.
problematic situations in this industry and possible obstacles to the sale of goods.
It is necessary to study the specifics of doing business in specific conditions:
logistics,
legislation,
infrastructure.
After studying your competitors, it is useful to brainstorm to find new solutions for the current market format. If you manage to create a WOW effect, customers will be more willing to purchase your goods and services. Repeating already known production and sales models rarely allows you to stand out from your competitors and reach a new level. But a creative approach of the team, competent marketing, innovative solutions will help you become a leader.
When it comes to investment projects, it is important to collect indicators not only for the current year, but also to analyze the dynamics of changes over 4-5 years. Such graphs clearly demonstrate the state of the industry and can become a decisive factor in making a positive decision for large investors.
What is important to know when studying competitors
Understanding the business environment and its features will enable you to assess your strengths in relation to the current market situation. We recommend paying attention to competitors not in general, but in a differentiated way, in order to study them by groups:
direct – performing similar activities for the same target audience and in the same region.
indirect – having differences in target audience or other characteristics.
potential – representatives of other regions, but with a chance of becoming direct competitors for you in the future.
What is included in competitor analysis:
Pricing – statistics, dynamics and company policy.
The range of goods/services and its extent.
Product quality.
Sales organization.
Popularity among consumers.
Raw material suppliers.
Marketing strategy.
Advertising channels.
Management of organizations.
Advantages of competitors' products or services.
Weaknesses of the organization, production, and operation of competitors' goods.
The effectiveness of internet marketing and advertising
This aspect is definitely worth paying attention to in order to obtain analytical information on the methods of attracting customers. What channels are usually used for advertising:
online website promotion - contextual advertising, targeted advertising, seo promotion,
smm activities – managing accounts in social networks, increasing brand awareness and popularity,
promotion of purchases – promotions, coupons, contests, discount programs, other events,
PR – active participation in public events, publications in the media (online and offline), reviews, interviews with specialists,
outdoor advertising, TV, magazines, newspapers.
Study where your competitors' ads are placed, what the media says about them, the quality of social networks, loyalty programs, and other activities.
Advertising in the press, on the radio and TV is effective for the B2C segment, but of little use for B2B business. The heads and top managers of large companies do not study newspapers or TV ads to find suppliers or business partners. But they will be interested in professional information on special resources: analytics, graphs, facts, forecasts. However, such statistics will bore the mass consumer of clothes or shoes. That is, you need to distinguish the sphere of interests of your target audience in order to find ways of effective interaction and organize comprehensive online promotion.
How to study your consumers
When developing a strategy, it is important to understand not only the age, social status and income level of your target audience. You will have to work with specific people and their needs, understanding the decision-making process and significant product characteristics.
Key areas for consumer analysis:
defining the purchase objectives,
clarification of needs and "pains"
motivation tools,
comfortable price level,
expectations for service standards and service,
key queries – what does he want to get from the product,
decision-making algorithm (logic, emotions, authoritative opinion),
reasons for complaints and dissatisfaction.
How does market analysis affect promotion?
First of all, you will be able to find out the current situation for your product or service group. Studying competitors will provide information about which customer needs have not yet been addressed or are not being met well enough. Market dynamics over several years will allow you to plan production volumes and the amount of expected profit.
Based on the research results, you can find out:
a place in the market that you can actually occupy,
the reasonableness of the prices and the profitability of your project,
payback period for material investments,
optimal advertising channels,
the most effective marketing activities.
How to better organize market research
There are different ways to do this, depending on the scale of your business, your staff, your budget, and the type of goods/services. In each specific case, you need to consider all factors as a whole, not separately.
Options for organizing market analysis:
on your own – this is suitable for small companies or entrepreneurs who do not have a sufficient budget. However, without experience and knowledge, you can get inaccurate information that will not lead to results.
with the help of marketers - the marketing department is able to conduct market research in order to obtain fairly objective forecasts.
with the involvement of a marketing agency is the most professional and reliable way that will save time, nerves and energy. The work of professionals is not cheap, but it gives the most accurate and complete analysis results.
When choosing a contractor, evaluate not only the costs of conducting research, but also take into account the cost of an error. An inaccurate forecast can lead to large material losses and the collapse of a business, so it is better to choose specialists with experience and knowledge.
For business development, it is important not only to develop online business promotion, but also to minimize risks. This is especially important when you plan to attract investments to your project.
Obtaining basic information for analysis
The key characteristic for entering the market is its capacity. What does this term mean? This is the ability of consumers to buy a certain amount shopify website design of your goods or services in a certain period of time. To do this, you need to get two initial indicators - the number of target audience and the consumption rate of this type of product for the selected period. Thus, the market size is the product of the number of consumers and the consumption rate. This indicator will allow you to specify the maximum possible demand in order to avoid overstocking and returns.
Why do you need consumer market analysis?
The development of a promotion strategy is based on knowledge of the target audience, decision-making algorithms, and other factors. It is necessary to conduct a psychological, demographic, social and geographic assessment to understand the whole picture. After the stage of collecting information and analyzing it, you can move on to segmenting the target audience. To do this, the market is divided into separate groups that are united by similar characteristics. This includes: purchasing power, income level and requests, decision-making algorithm, etc.
What data will you get after market analysis?
After conducting a market analysis, you will receive the following indicators:
Information about the state of the industry in your region/country,
Consumer data and target audience profile,
Understanding the strengths and weaknesses of existing competitors,
Development prospects of your project taking into account the market capacity,
Definition of economic dangers and risks.
How is market analysis carried out?
There are several methods that allow you to obtain information. The choice of marketing research and analysis methods should be based on the objectives of its implementation. That is, the company's manager must understand why information is collected and what data is important to obtain. The main areas of market research are divided into general and marketing.
General market research allows you to study the demand for a product or service, analyze pricing issues, growth/fall trends in demand. This method allows you to identify the most attractive areas for investment, if such a task is set. When developing a promotion strategy, statistical data analysis is the basis for developing a work algorithm.
Marketing research of the market situation is aimed at studying a certain area of business, in which the main emphasis is placed on studying behavioral factors, the market situation and competitors' positions. Such analysis allows developing short-term and long-term forecasts, building strategies and making informed decisions.
Rules of study and analysis of the industry
Usually, business is conducted in a specific region or several regions. It is more difficult to master large areas at once, since this path will require more marketing and advertising costs. Now in online trade, the boundaries between cities and countries are erased, but in any case, there are economic differences. It is necessary to identify:
specific market features and clarify the starting positions of your business.
what customer needs your product or service solves.
volume of goods/services consumed.
the dynamics of growth or decline in demand due to seasonality and other factors.
problematic situations in this industry and possible obstacles to the sale of goods.
It is necessary to study the specifics of doing business in specific conditions:
logistics,
legislation,
infrastructure.
After studying your competitors, it is useful to brainstorm to find new solutions for the current market format. If you manage to create a WOW effect, customers will be more willing to purchase your goods and services. Repeating already known production and sales models rarely allows you to stand out from your competitors and reach a new level. But a creative approach of the team, competent marketing, innovative solutions will help you become a leader.
When it comes to investment projects, it is important to collect indicators not only for the current year, but also to analyze the dynamics of changes over 4-5 years. Such graphs clearly demonstrate the state of the industry and can become a decisive factor in making a positive decision for large investors.
What is important to know when studying competitors
Understanding the business environment and its features will enable you to assess your strengths in relation to the current market situation. We recommend paying attention to competitors not in general, but in a differentiated way, in order to study them by groups:
direct – performing similar activities for the same target audience and in the same region.
indirect – having differences in target audience or other characteristics.
potential – representatives of other regions, but with a chance of becoming direct competitors for you in the future.
What is included in competitor analysis:
Pricing – statistics, dynamics and company policy.
The range of goods/services and its extent.
Product quality.
Sales organization.
Popularity among consumers.
Raw material suppliers.
Marketing strategy.
Advertising channels.
Management of organizations.
Advantages of competitors' products or services.
Weaknesses of the organization, production, and operation of competitors' goods.
The effectiveness of internet marketing and advertising
This aspect is definitely worth paying attention to in order to obtain analytical information on the methods of attracting customers. What channels are usually used for advertising:
online website promotion - contextual advertising, targeted advertising, seo promotion,
smm activities – managing accounts in social networks, increasing brand awareness and popularity,
promotion of purchases – promotions, coupons, contests, discount programs, other events,
PR – active participation in public events, publications in the media (online and offline), reviews, interviews with specialists,
outdoor advertising, TV, magazines, newspapers.
Study where your competitors' ads are placed, what the media says about them, the quality of social networks, loyalty programs, and other activities.
Advertising in the press, on the radio and TV is effective for the B2C segment, but of little use for B2B business. The heads and top managers of large companies do not study newspapers or TV ads to find suppliers or business partners. But they will be interested in professional information on special resources: analytics, graphs, facts, forecasts. However, such statistics will bore the mass consumer of clothes or shoes. That is, you need to distinguish the sphere of interests of your target audience in order to find ways of effective interaction and organize comprehensive online promotion.
How to study your consumers
When developing a strategy, it is important to understand not only the age, social status and income level of your target audience. You will have to work with specific people and their needs, understanding the decision-making process and significant product characteristics.
Key areas for consumer analysis:
defining the purchase objectives,
clarification of needs and "pains"
motivation tools,
comfortable price level,
expectations for service standards and service,
key queries – what does he want to get from the product,
decision-making algorithm (logic, emotions, authoritative opinion),
reasons for complaints and dissatisfaction.
How does market analysis affect promotion?
First of all, you will be able to find out the current situation for your product or service group. Studying competitors will provide information about which customer needs have not yet been addressed or are not being met well enough. Market dynamics over several years will allow you to plan production volumes and the amount of expected profit.
Based on the research results, you can find out:
a place in the market that you can actually occupy,
the reasonableness of the prices and the profitability of your project,
payback period for material investments,
optimal advertising channels,
the most effective marketing activities.
How to better organize market research
There are different ways to do this, depending on the scale of your business, your staff, your budget, and the type of goods/services. In each specific case, you need to consider all factors as a whole, not separately.
Options for organizing market analysis:
on your own – this is suitable for small companies or entrepreneurs who do not have a sufficient budget. However, without experience and knowledge, you can get inaccurate information that will not lead to results.
with the help of marketers - the marketing department is able to conduct market research in order to obtain fairly objective forecasts.
with the involvement of a marketing agency is the most professional and reliable way that will save time, nerves and energy. The work of professionals is not cheap, but it gives the most accurate and complete analysis results.
When choosing a contractor, evaluate not only the costs of conducting research, but also take into account the cost of an error. An inaccurate forecast can lead to large material losses and the collapse of a business, so it is better to choose specialists with experience and knowledge.