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Subject: Marketing Management
What is Market Analysis?
Market analysis can be defined as a research or study of an industry’s overall market,
the results of which help a business in planning any future actions such as expansion, promotions, and purchases. It is designed to provide an understanding of a
company’s markets, help forecast their directions and aid in deciding how to expand the company’s business and make effective use of any new market trends. Market analysis acts as a foundation of a company’s core business
Market segmentation helps in performing what may be called a differentiated market analysis considering various factors. Segmentation is an aspect of market analysis that proves to be vital for a business in manufacturing products in line with customer requirements. Market segmentation divides consumers on the basis of factors like geographical location, demographics of particular areas, consumer behavior, lifestyles, special occasions and expected benefits from products. Segmentation is a base for an effective market analysis.
Dimensions of Market Analysis
A market analysis comprises of several key dimensions. These are: Size of the market: Two factors determine the market size
volumes and market potential. Market volumes refer to the current quantity of sales that has already been realized. Market potential, on the other hand, considers sales volumes that can be generated by potential customers and also how high the demand can possibly go.