How To Do a Market Analysis?

There are many details that you need to consider when creating a venture in a new market or preparing to introduce a new product / service in the market. Being aware of the general characteristics of the market, exploring the current variables of the market closely, and of course understanding where you need to be positioned in the market by examining your competitors is of high value for making a strong enough entry into the process. Screpy enables you to manage and optimize your new venture’s digital presence from a single platform, thanks to its all-in-one tools. Today, we will talk about both the market analysis you can do to carry your startup to the best points, and the Screpy tools that will allow you to follow your progress regularly after this analysis. If you’re ready, let’s get started!

How To Do a Market Analysis?
How To Do a Market Analysis?

Before you start: remember that a good market analysis optimizes risk planning for you, making it possible to optimize business development processes with a professional perspective. Therefore, regular market analysis will be very valuable both for new players to enter the market and for companies that are in the market and want to enter the growth process. Remember,

  • Market analysis gives you information about the overall volume and demand of the sector in question.
  • Also, thanks to this analysis, you can see how the market is shaped depending on the development of current socioeconomic factors.

Now let’s explore step by step what market analysis means, why it matters, and how it’s done, folks.

What is Market Analysis?

Market analysis is a review process designed for new start-ups, companies, or brands to get maximum efficiency from their business processes. It can be said that it has a very key role in getting to know the sector closely and taking product, service, targeting, and marketing actions according to the requirements of the sector. A strong enough analysis can provide your firm with;

Strong risk management

We all take risks when initiating business processes or developing our business. But being aware of the current state of the market can help us manage risk more intelligently. Consider, for example: How logical would it be to open a nightclub in the midst of the COVID-19 era and travel restrictions for an extended period? As you can see, the current state of the market is affected by socioeconomic and political factors. The market analysis, on the other hand, gives you information about how much make sense your startup has at a specific time.

Making rational decisions

You can be more rational when making your business decisions and see the pros and cons of the process more clearly. An accurate market analysis will help you list the factors that can mean opportunity and misfortune for you in a process. It may be logical to make business decisions after making a detailed assessment of these easily.

Having a regulated assessment

Market analysis takes place in certain steps and it also provides stability to your review / analysis processes. In this way, instead of dealing with a complex workload and variables, you will have the chance to understand current requirements much more regularly.

The main benefits mentioned above are the ones you can enjoy if the market analysis is done properly enough. In order to get the maximum return from an investment you make and to organize your growth processes with the right strategies, you should do the market analysis continuously, not once. In particular, periodic market analyzes help to design periodic company strategies in accordance with current trend requirements. For example, if market analysis says that the use of social media marketing has increased competitor sales volumes lately, it is inevitable to have Reels and IGTV in your next action plan, right?

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Questions To Ask While Analyzing Market

So, what questions should be asked in general when doing market analysis? What answers can help you to understand the state of the industry in general and to determine if it is a good place to enter / or to expand your reach? Let’s start the review together.

Questions To Ask While Analyzing Market

Discovering Your Competitors

Who are your top competitors in the market? To understand who these competitors are, you can examine the top 100 rankings of a particular keyword through Screpy’s keyword tracking tool. The top ten sites in this ranking consist of sites that get all of the SEO visibility. The next ones are sites with the potential to rise step by step and are important competitors for you. You can also take a look at the competitive analysis content published by Screpy experts in order to take the right steps while examining your competitors. Here you will find detailed information about which categories you should analyze your competitors.

Knowing Your Customers’ Budgets

What is the current financial level of your customers? Do you know how socioeconomic processes affect business? An economic crisis can lead to the bankruptcy of an enterprise that would have been really successful under normal circumstances. Therefore, it will be useful to discover the income of your customers as a general statistics and to understand the current level of this income. How much are your customers willing to pay for the service you provide? This question is very important.

Understanding Industry Marketing Rules

What are the factors that affect and convince your customers when they want to buy a product related to the industry? In short, in which contexts do the marketing processes of your industry take place more intensely? Social media, paid ads, traditional ads, influencer marketing or much more. It will be much easier to get the best results if you adopt the right strategies and allocate your marketing budget in the right proportion. Remember, the right marketing aims to get the highest conversion with the least advertising budget.

Clarifying Capital Requirements

Market analysis is also an analysis of what you need to get started. Are you going to open a physical store or will everything go online? How much capital do you need in the beginning to create a sufficient level of product variety, marketing and infrastructure? How long do you have to find this capital? It is possible to find answers to all these questions with a correct market analysis.

Clarifying Capital Requirements - market analysis
Clarifying Capital Requirements – market analysis

Detecting Gaps in the Industry

Finally, we have another question that goes in parallel with the competitor analysis: What are the product/service options in the industry that might be of interest to your target audience but not offered by your competitors? Explore the gaps in the industry and infiltrate the right spots to become a star. Be sure, you will get much better results.

Detecting Gaps in the Industry
Detecting Gaps in the Industry

Trend Awareness, Screpy and Market Analysis

A detailed market analysis allows you to keep track of trends that are constantly changing due to the speed of the digital world. Continuous tracking helps you stay away from trends.

Let’s imagine a brand with you. Let this brand have a standard Instagram account but only share product images on Instagram. It’s not hard to foresee that your opponent can take the lead with much less shares, right? The Instagram algorithm will consider even a single reel more valuable than 4-5 non-user-oriented images. Moreover, in order to attract the attention of users, it would be much more accurate to shoot Reels with trending music and appealing to Tiktok trends. If this is appropriate for your target audience, you should follow these current trends to stand out by giving them the message “we are one of you, too.”

The situation is not just for Instagram. As you know, some keywords can be searched more than others in certain periods depending on various social factors. While trading on Screpy, you can analyze the search volumes of keywords and shape the strategy of your content other than evergreen content according to the changing trends, thanks to the keyword tracking tool that works in sync with Google Trends. Proper and fast enough content production can help you get thousands of clicks with a single piece of content.

Here’s how market analysis can be enriched with Screpy, folks.

We are always with you in business production and development processes.

How to Do Market Analysis? Market Analysis in 7 Steps!

Now it’s time for the steps to be followed to make a real market analysis. Remember, if you follow the right steps, you can successfully construct your business strategy by achieving extremely advantageous results in a short time. Start exploring for more.

Determine For What Purpose You Do Your Market Analysis

When market analysis is carried out for different purposes, it can focus on different points.

For example, if you have decided to enter a new market with a start-up, you can generally focus on understanding whether the market will offer fruit to a new actor. If you are already an actor in the market, it would be logical to make an analysis focused on understanding whether socioeconomic factors and the current consumption habits of your customers allow you to grow, and to try to understand which product group or customer segment can grow. In short, determining the purpose for which you will use the results in order to perform the market analysis process, which is a very comprehensive review, will allow you to make purpose-oriented transactions.

Here is a tip:

For example, if you are new to the market, it may make sense to try to understand the gaps in the sector and to introduce products to your customers at a relatively low price. For this, you can use the right strategy to determine the average prices in the sector, to discover the current interest in your competitors and to attract attention.

Here is another:

If you have a growth target in a market and are searching for new products and services that you can offer in this direction, market analysis may proceed in a slightly different scope. In this case, it would be a good idea to find a niche product group in the industry and to launch this product group with the right price strategy. You can get better results when you do your market research in this direction. In short, market analysis can give much more accurate results when it is done for a specific purpose.

Get Up-to-Date by Starting Your Industry Research

Conducting industry research means finding the opportunity to examine the future potential of the industry in question, its current volume and the factors affecting it. You cannot evaluate a sector only by its profitability ratios on paper. You have to determine the periods that put the sector into crisis, the key points that may cause problems in product supply and logistics, the advantages that will help you to be a pioneer in the sector, considering many details.

Example: E-Commerce in the Age of COVID-19

We have experienced the importance of following the industry up-to-date, especially in 2020, with the introduction of COVID-19 into everyone’s lives. The fact that people did not leave their homes caused an explosion in the use of e-commerce sites, and many companies achieved a high volume by moving their sales processes to e-commerce. Research has revealed that there has been a 275 percent increase in the number of businesses that go online in the world. This is really great progress.

But what does this progress mean? If you do not follow the market, you can follow old-school marketing methods and not switch to online sales. But if you are a market follower, you can add the home-delivery option to your services while providing an ordinary grocery service, and you can set up an app and make it possible for people to order from there. These are the advantages of following the current sector. If you keep track of who are the “winners” of the game, you will always have a high chance of finishing the race.

Example: VR Technology in Cosmetics

The situation is not limited to this. For example, we know that recently, various makeup brands have been using VR technology to move forward in online sales. While looking at lipsticks on women’s websites around the world, a lot of technologies have emerged that can answer the question “How will this lipstick be on me?” Women looking at the camera can take advantage of VR to show how they actually tried that lipstick. This is one of the important indicators that the current market is open to innovative developments in the online world. If you follow the market closely enough and notice the companies that show such changes, you can offer your customers the campaigns and advantages in line with the spirit of the time and create new targets for yourself. It’s that simple!

Example: VR Technology in Cosmetics
Example: VR Technology in Cosmetics

Identify Your Target Audience

Audience targeting means clarifying exactly who you want to sell products or services to. This stage is really important because not every opponent you encounter may be a good example for you. For example, while you want to appeal to the masses that buy low-priced products in the industry, it may be pointless to compete with a company that sells luxury versions of the same product. For this, you must first determine your target audience and do your market analysis accordingly. Various socioeconomic conditions can cause a shift in your target audience. You can use the following filters when trying to identify who your audience is in general:

  1. Age
  2. Gender
  3. Location
  4. Profession
  5. Education
  6. needs
  7. Areas of interest

In order to get to know this audience better, you can ask them which online platforms they spend time on, and examine their online shopping habits. For example, if you are addressing individuals between the ages of 17 and 18, the option to pay at the door can increase their chances of shopping. Because the use of credit cards by this group may be more limited. However, if you are addressing the age range of 23 – 35, it will be useful to include various online payment platforms as well as credit card options.

Knowing your target audience is also essential to understanding the price they can sacrifice for a product or service.

Analyze Your Competitors

Analyzing your competitors, discovering gaps in the market and understanding the similarities and differences with your competitors in terms of target audience can be useful in developing a strategy. There are many methods you can choose for this. In the competitive analysis content we wrote before, we told you about different methods. For example, various methods such as SWOT analysis, Perceptual Mapping, Porter’s 5 Factor Analysis help you to understand your competitors by categorizing them very easily. In this way, in a much shorter time, you understand which of your competitors mean what to you.

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Analyze Your Competitors - Market Analysis
Analyze Your Competitors – Market Analysis

Competitor analysis is basically based on: Identifying the factors that will show your competitor and your strength in the market and creating a strategic business plan according to these factors. For example, a SWOT analysis reveals how your competitor is turning a supply advantage into a price advantage. Porter’s 5-factor analysis tells you who can beat you in a market based on the five key forces. By using such methods, you can easily understand who you are competing within the market.

Remember: you have to proactively determine your development strategy in the market. Otherwise, it is possible to fall behind and allocate your budget to some wrong strategies. Being proactive requires being at the heart of the market and constantly updating your knowledge.

Do Not Neglect Using Data and Track Updates About Your Industry

Check out the latest research on your industry around the world. Also, get more solid insights into the future by reviewing the publications of local and global research agencies relevant to your industry. In this way, you will realize that you can adapt to the market much faster. If you’re into the digital marketing and SEO industry, following Screpy’s blog content regularly and keeping up to date with Google’s updates are powerful examples of leveraging data. Or, for example, if you are in the e-commerce industry and you are getting the e-commerce statistics published at the end of 2020 from various website service platforms, this is also an excellent tracking method. Explore and make sure to what extent the process is going “as it should” on your end.

Utilize Professional Methods for Data Analysis

Seeing how your data charts will help you understand a trend and trend. For example, it is good to examine the traffic rates of the last 5 months for your site. But it is also very important to bring them together and interpret them in a meaningful flow with detailed analysis, in order to understand where you are doing right or wrong. Use professional methods for data analysis.

At this point, there is a detail that Screpy will benefit you: If you use Screpy, you will ensure that your site is scanned at regular intervals without you telling, thanks to its AI-based technology. Regular analyzes in terms of SEO score, page speed values ​​and uptime allow you to follow the retrospective and current values ​​of your site. This will provide you with information on what to focus on to fix the problem should a problem occur.

Take Action As A Result Of Analyzes

The reason for doing market analysis is to take action according to the results of this analysis and not leave your job to chance. Therefore, if you are working with a large company, make sure that your departments are well-informed with each other. Important information discovered by the analysis department must be taken into account when taking action.

  1. For example, depending on the current situation of the sector, marketing activities may be reduced or marketing may be increased.
  2. According to the predicted growth rate, an annual budget plan can be made and action can be taken accordingly.
  3. According to the estimated market share of the business, a certain supply budget can be allocated and necessary agreements can be made.
  4. Negotiations with digital marketplaces can be initiated according to the average sales volume.
  5. Pricing and scheduling of campaigns can be done according to the price that customers can sacrifice for a product or service.

It is vital to benefit from the results of the analysis for all of this and more.

FAQ

What are the types of market analysis?

Four different methods can be used to perform market analysis. In some analysis processes, all of these methods are used simultaneously and the results are combined. These can be listed as surveys, interviews, focus groups and customer observations.

What is the purpose of market analysis?

The main purpose of market analysis is to have information about consumers, competitors and the economic status of the sector in general. In addition, market analysis is very important in order to understand the impact of supply and logistics wings, which are actors that seem to be outside the sector, and to be prepared for any surprises that may arise.

What’s the best marketing strategy?

It may not make sense to set a general method for marketing strategy and use it every term. Instead, it will be much more useful to use the data obtained from market analysis throughout the marketing process and to determine the target auidance, budget and context accordingly.

What are 3 costly mistakes that you can avoid by doing market research?

The most important mistake is to enter the marketing process and start serving without knowing who you are addressing. This can waste all your budget and time.
Another common mistake is to develop the entire strategy based on a single data type. As we mentioned before, you need a large dataset. You will use this dataset later to do a very detailed analysis.
Not understanding what the focus group wants is another common mistake. This error is usually caused by being biased and ignoring the data. If you do not want to experience such a problem, you need to rely on data results in customer and target audience analysis.

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