MARKET ASSESSMENT

Market assessment helps an entrepreneur to understand the market in which he/she is supposed to
operate in the process of setting up an enterprise. It involves understanding the market, customers,
competitive situation, and trade practices to make the business successful. An entrepreneur needs
to identify the tastes and preferences of customers as well as factors affecting the market.
Determining the tastes and preferences of customers is not an easy task because the market is
composed of a large variety of customers, who differ in their age, sex, education, income, status,
likes and dislikes, and opinions. An enterprise decides target segments on the basis of several
factors, such as resources available, scale of operations, and the impact of profitability. The
identification of target market helps in estimating the demand for a product in the market. After
estimating the market demand for the product, the entrepreneur looks for the competitive situation
prevailing in the market to form marketing policies. The nature and extent of competition influence
the marketing policies of the enterprise. For example, an enterprise cannot charge a price that is
higher than what the competitor’s charge, in the initial years of launching an enterprise. The
analysis of the competitive conditions of a market helps in recognizing opportunities for a new
enterprise or new product.
MODELS OF MARKET ASSESSMENT
Different models used for market assessment are as follows;
SWOT ANALYSIS:
 PESTEL ANALYSIS:

PORTER’S FIVE FORCES MODEL: