While performing a marketing study is not a difficult task, it does need extensive research, so plan on devoting a significant amount of time to it.

The seven steps of performing a market analysis are as follows:

1. Focus on your goal. You may be doing a market study for a variety of reasons, including evaluating your competitors or learning about a new industry. Whatever your motivation is, it’s critical to figure it out as soon as possible in order to stay on track throughout the process. Begin by determining if your goal is internal – such as increasing cash flow or enhancing business operations – or external – such as obtaining a business loan.

2. Learn about the current status of the industry. It’s critical to give a thorough overview of your industry’s present status. Include where the industry appears to be headed, utilizing measures like size, trends, and expected growth, as well as plenty of facts to back up your conclusions. You may also do a comparative market study to figure out where you have a competitive edge in your market.

3. Determine who your target consumer is. It would be a waste of effort to attempt to get everyone interested in your product, and it would be a waste of time to try to get everyone interested in your product. Instead, conduct a target market study to determine who is most likely to desire your product and concentrate your efforts there. You want to know how big your market is, who your consumers are, where they’re located, and what variables could affect their purchasing decisions, such as:

Age \gender \location \occupation \Education \needs \interests During your study, consider establishing a customer profile or persona that represents your ideal consumer and will serve as a model for your marketing efforts.

1. Know who your competitors are. To be successful, you must have a thorough grasp of your rivals’ market saturation, what they do differently from you, and their strengths, limitations, and market advantages. Begin by making a list of all of your major rivals, then go through the list and perform a SWOT analysis on each one. What distinguishes that company from you? What makes a consumer select their company over yours? Put yourself in the shoes of the customer.

Then, from most to least dangerous, prioritize your list of rivals and set a schedule for doing frequent SWOT assessments on your most dangerous competitors.

1. Gather further information. Information is your friend when it comes to marketing analytics – you can never have too much data. It’s critical that the data you use is reliable and accurate, so be selective about where you acquire your figures. Here are a few trustworthy business data sources:

Bureau of Labor Statistics of the United States of America Census Bureau of the United States Sites for state and municipal trade Journals of commerce SWOT assessments of your own Questionnaires or market research

1. Examine the information you’ve gathered. After you’ve gathered all of the data you can and double-checked that it’s correct, you’ll need to analyze it to make it helpful to you. Organize your research into categories that make sense to you, but be sure to include divisions for your goal, target market, and competitors.

The following are the major components of your research:

An overview of the size and growth rate of your industry The predicted market share percentage for your company An overview of the industry Buying habits of customers Your projected expansion What is the maximum price that your consumers are willing to pay for your product or service?

1. Apply what you’ve learned from your investigation. It’s time to put your market analysis to work for you now that you’ve completed the first research. Look for ways to apply your research and results to enhance your company from inside. Have you seen something in other firms that you’d like to try in your own? Is it possible to improve the effectiveness of your marketing strategies? If you’re doing your analysis for someone else, put your research and data into a document that’s easy to read and understand so you can share it with lenders. Remember to save all of your data and research for your next study, and set a calendar reminder for yourself every year so that you don’t forget.