1 / 18

Market Analysis

Market Analysis. Contents. Market size Market share Market share Market growth Competitor analysis Market segmentation Market research Sampling methods. Key terms. Market size – the total number of sales in £ (value) or quantity (volume) in a market

hope
Download Presentation

Market Analysis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Market Analysis

  2. Contents • Market size • Market share • Market share • Market growth • Competitor analysis • Market segmentation • Market research • Sampling methods

  3. Key terms • Market size – the total number of sales in £ (value) or quantity (volume) in a market • Market share – the % of a market an individual business has • Market growth – the % increase in the size of the market on an annual basis • Market segment – a section of consumers in the market which share similar characteristics

  4. Market analysis • Businesses use methods of market analysis to find out what is happening in the market • These tools allow them to develop marketing strategies which exploit opportunities

  5. Market size • This helps businesses decide the potential profitability in a market • Larger markets tend to have more opportunities to make a profit • When a business is considering entering a new market they will be interested in market size and the fierceness of competition

  6. Market share • Market share figures allow a business to compare themselves to their competitors • If the market is dominated by a number of large companies e.g., Supermarkets such as tesco, asda, Sainsbury's it is less attractive for new firms to aim at the entire market • The distribution of market share in a market is influenced by the type of market that the business is operating in (monopoly – perfect competition)

  7. Market growth • This figure is crucial for a business • Many attractive markets are relatively small and fast growing therefore offering the potential of high profits • Markets that are growing at a rapid rate tend to attract lots of new businesses • Markets tend to grow the fastest at the beginning of the product life cycle

  8. Market growth / decline • Sometimes markets suffer negative growth • This often leads to companies leaving the market • Some businesses may be able to exploit opportunities and segments using their own USPs when the market is entering into decline

  9. Competitor Analysis • Businesses need to have a good idea about their competitors to enable them to develop valid and successful marketing strategies • Alongside market share a business often benchmarks their current / potential competitors in order to gain a greater understanding of their offering

  10. Segmentation Analysis • Market segmentation is the process of splitting up the market into different segments or chunks which share the same characteristics • Characteristics that businesses segment by can include: • Age - Socio economic group • Gender - Culture • Ethnicity - Lifestyle

  11. Segmentation Analysis • Segmentation analysis allows a business to tailor their marketing strategy to meet the needs of different customers • Some market segments are more attractive than others as they may display lower levels of competition, faster market growth or more opportunities to make profits

  12. Market Research • Market research is the process of collecting, collating and analysing data about the market • Primary or field research is research that is done first hand e.g. questionnaires, surveys • Secondary or desk research uses existing sources of information e.g. books, journals

  13. Advantages Fitness for purpose Allows to target right segments Can explain difficult problems / concepts Disadvantages Can be time consuming Expensive Some forms have low response rates Primary research

  14. Postal surveys – these have a high sample size but low response rate, relatively cheap Telephone surveys – more expensive, higher response rate, can explain questions Interviews – smaller sample size, higher response rate, may be interviewer bias Focus groups – provide in-depth analysis, small sample size Primary research methods

  15. Advantages Quick and easy Relatively cheap Disadvantages May be out of date May not be relevant Secondary research

  16. Census – provides information on all the households in the UK, updated every 10 years Internet – can provide a wealth of information however need to check validity of data Government statistics Books and journals Company reports MINTEL reports – these are often a good source of market information Secondary research methods

  17. Sampling • Sampling refers to the methods used to select consumers to participate in market research • Random sample – all of the population have an equal chance of being selected often done using a computer • Quota sample – candidates are chosen based on their characteristics

  18. Summary • Market size – volume / sales in the market • Market share - % of the market a business has • Market growth – the rate of increase in the size of the market • Competitor analysis – look at statistics on competitors in the market • Segmentation – splitting up the market into different groups based on their characteristics • Market research – finding out about the market: • Primary – 1st hand e.g. surveys • Secondary – 2nd hand e.g. internet • Sampling – method of selection of candidates for market research

More Related