Friday, May 17, 2013, AM | 2 Comments
When it comes to business decision making, you must know how to analyze the niche market. Market analysis can be defined as an organized means of scrutinizing market opportunities, knowing customers’ requirements and last but not the least, developing new services and products to meet those requirements.
In other words, it can be described as a methodical way towards evaluating potential demand for a service or product within a niche market.
Being an entrepreneur, you must conduct market analysis as a stepping stone towards starting a successful business. However, it is also recommended for the veteran business people while they are trying to launch a new product or service, or bring an existing product or service into a new group of customers.
Here are some basic tips towards conducting a market analysis.
Select your niche market
At the outset, you need to determine the niche market that you want to reach and collect some important information about that market. Go thoroughly through the demographic information like age, income level and location. Information on buying habit of your target customer is also useful, provided if you can find at all.
Know the prospects’ challenges
You need to identify the challenges experienced by your target customers, in regards to the products or services you sell. Even if you’re not thinking about promoting any particular product or service, then also you can consider this step to narrow down your business possibilities to those customers who will be the most viable ones in this market. Now make a list of existing products or services that can meet your targeted market’s requirements. You must take care of the shortcomings of the product. The shortcomings may include effectiveness, price or ease of usage.
Know your competition
Conduct a thorough research on what your competitors presently offer as solutions for the issues on which you’re focused. Evaluate whether or not your competitors are flourishing in the niche market, which particular market they are focusing on and what business strategies they use to meet the demand on their target market.
List the techniques
Now make a list of techniques that you may use to reach your chosen market. You may use the marketing techniques that your competitors are not using presently. Think about solutions to solve same problems in more effective ways than that of them.
Recognize your selling proposition
You must know your selling proposition. This is often the feature or the benefit of your product or service that has differentiated you from others in the same field.
Consider different variables
When it comes to market analysis, you must consider different variables that may help you estimate the size of your target market from the bottom up. You can narrow down the niche market by emphasizing on the time period and a particular location.
Discussed above are just a few of many steps towards conducting an effective market analysis.
Please note that your analysis may indicate that the product or service offered by you may not do well in the market. And this provides you opportunity to amend the features of your service or product before introducing into your target market. You can also amend your niche market if you can find another and better group of consumers having interest in your product.
This is a Guest Post.