Market refers to a variety of systems, institutions, procedures and social relations through which parties exchange goods and services. A market may be physical (as in shopping centers or commodity wholesale markets) or virtual, as in online auctions.
Market analysis involves examining the health and trajectory of an industry, as well as the current and ongoing demand for products or services within that market. It also includes a deep dive into competitors and their strategies, strengths and weaknesses. This helps you to refine your value proposition and set yourself apart from the competition.
A key part of market analysis is identifying where there’s room for growth, innovation or differentiation. For example, if demand exceeds supply, there’s opportunity for new product entrants to fill the gap. Or if existing competitors have strong brand recognition, it might be challenging to break through and gain traction.
Another important component of market analysis is determining how large a potential market is. This is done through a process known as total addressable market (TAM) or service addressable market (SAM). These metrics help you to estimate how much revenue you can generate in the future by selling your product or service to a particular audience.
When preparing to share results from market research, it’s important to focus on the most relevant data and not overwhelm your readers with too many details or charts. A clear executive summary at the beginning can help keep your report focused and easy to digest. It’s also helpful to include an appendix with discussion guides and survey forms to make it easier for your audience to get the information they need quickly.
About the Author
