Startup Guide IONOS (ntipss//mmcionescom/startupguide/) (©2411. | Grow Yourausness tpt nos. com/sartungudepromjourbusnes sco ysl 1801 le Market analysis - the definition ‘Aarket analysis provides information about industries, customers, competitors, and other market variables. You can also determine the relationship between supply and demand for a specific product or service. Based on these insights, you can make more informed decsions about possible marketing strategies, Contents 1. What i market anal 2, Market analys's: content and structure 3. Conelusion What is a market analysis? How suitable is your offer for a certain market? A market analysis will answer these important questions. Every market participant - whether companies, founders, or private customers ~ can carry out a market analysis. n any case, it serves asa basis for decision-making, Information is collected and evaluated from suppliers and buyers in order to make purchase or sales decisions. Furthermore, you can evaluate your current market or view new markets, $1 Domain NamesRegister great 10s for es than $1 forthe frst year Startup Guide Why wate Grab your favre domain nae today! IONOS (htips/ mn onoscom/startupguie/) Y/Aatehing erat Y/ SSL certtcate 9/24/71365 support Save Now @ Definition: Market analysis Marka analysisis arg part of market research and an important component ofa business plan {hitpsztwaenionos.comistartupguidelgetstared/tusinessplar-reation In this plan, business founders document their business dean ‘tng. During che cours ofthe markat analysis specie markets akan int acount, With he help of the results splayed, corpanies ‘can identify the opportunities and risks ofthat particular market. The target group forms the basis of the market analysis, Different methods of market analysis In order to cary out @ market analysis you will require reliable Information. Generally speaking, small companies tend to carry out the necessary research for theit market analysis themselves, Larger companies, on the other hand, often commission market research institutes to do it for red out using various methods af data collection. A distinction is made between primary and secondary them, A market analysis ean be research \With primary research, experts from a target market are interviewed in order to collect new data, The advantage of this s that It's stl your own research purpose in focus. This way, you can collect the data you need for your market analysis. la contrast te ths, secondary research uses existing data records fram previous surveys. This can be collected both internally and externally. By opting for secondary research you can save both time and money because you don't have to conduct costly interviews and evaluation. Sources for representative data are, for example, the Federal Statistical System, professional chambers, annual reports of ther companies, or trade journals,Startup Guide eye IONOS ‘The bigger the company, the broader your market analysis should be. (ntipsy//wmciones.com/startupguide/) Market analysis vs. market research: what are the main differences? Market research means the systematic investigation of a specfic market, as such research provides information on the basis of which you can selecta suitable marketing instrument. n contrast to market research, market analysis focuses on a specific market ona given date, The aim of ‘market analysis ist identity the most important characteristics of a market and to determine the market structure ata certain point in time, BFact ‘The market structure describes the structure ofa certain market. It focuses on the interaction between suppliers and consumers and can be determined on the basis of various criteria, These criteria depend on different characteristics of a market, These include the size and value as well as the numberof suppliers, the buying behavior of consumers, or growth forecasts What is a market analysis for? Iryou want your business plan to be successful you will need to carry out a market analysis. Acomprehensive market analysis forms the basis of the development of a marketing strategy and concrete marketing measures, Further reasons for conducting a market analysis: ‘with a market analysis, you can back up your business idea with figures, data, and facts, and therefore provide a convincing business pla, + You can recognize market potential at an early stage and avoid making the wrong decisions. + You can identify any existing knowledge gaps and fill them in on time.‘+ Amarket analysis shows you which competing products are ready on the magkgttup Guide + Were ana ier te ware ety air a existe ces Market analysis: content and structure {https//wmionos com/starupguie/) ‘An effective market analysis will include an accurate description of the target market (he holist :/onw. jones. com/digitalgulde/hosting/blogs/successful-blogging-find-your-target-market) and thorough market research. It conveys picture of a specific market. A market analysis consists of five different areas in which information is collected and analyzed. Market description: examine your market! [At the beginning, define your market and differentiate i rom other markets. Depending on the product or service, your market can be defined sing various criteria In order to carry out segment-specfic analyses, the target market must be divided into sifferent segments based on certain characteristics. Such characteristics can be socio-demographic (age, sex, income) or regional stats, cities), ‘The following questions should be covered in the market description: ‘What target group is your product or service aimed at? ‘What age group is your product aimed at? ‘+ Whats the average income of your target market? ‘+ Where does your target market live? Find out as much specfic information as possible about your target market: * Does your target market drink chocolate mocca or black coffee? + How fast does your target group drink coffee? 20 or 30 minutes? Market size and market development: how attractive is the market? When determining the size of your market you should use data thats as accurate and up-to-date as possible. This part of the market analysis is about determining and evaluating the actual turnover or sales volume ofa product or service in a specific market, Based on these figures you can ‘make forecasts about the market development and derive the attractiveness of the market from this. The market development includes market grovith and growth rates.‘What are suitable sources for procuring information? Startup Guide The folowing adrnstratve bossa nee kes prove freeing for your mAs NLD.S (hips we lonoscon/strtunguice) + The US. Census Bureau (etps:/m.census govlen htm provides reliable information tha covers al topics frm A for advance monthly Fetal sales, to 2 for zp-codes. With resources such as surveys, programs, and news articles, tere sno shortage of information. +The Small Gusiness Administration (htps/nw:sba gow) provides fre acess to business and economic statisti colected by the US. government + Statistics, market data and studies canbe found online a Statist (helps: statsta.cor), There you can view data from market research and opinion research nstutions, information from the business word, and official statistics. + GlobatDatathps//mwglobaldata.cor) supposedly produces over 15,000 repors, briefings, forecasts, and data books a year. features wide range of sectors, companies, and countries. Competitive analysis: what are the market characteristics? The competitive analysis considers individual factors that are important for a market. Here, the essential characteristics of @ market are analyzed and described. The “Five Forces Framework’ is an established tool for analyzing competi ‘management theorist, Michael E. Porter, shows which factors are important forthe analysis of both the market and the competition especialy inthe consulting industry. The 1. Bargaining power of customers: How d target group? 2. Bargaining power of suppliers: Suppliers have a particularly high bargaining power ifthe number of suppliers ii toprice increases if necessary? 3. Threat of substituteproducts and markets Are there alternatives to your product or service? Could emerging innovation jeopardize the distribution of your product or service? 4. New competitors and market entry barriers Ifa market is particularly attractive itis sure to attract new competitors. How high are the ‘market entry barriers for potential competition? Far example, high investment costs for a product or service ean be a barler to market entry. Access ta market is also made more dificult if high marketing costs are necessary to achieve a certain level of awareness, arif resources are dificult to access due to exclusive suppliers, or if shop isin an awkward location. 5, Competitors in the market: How high is the competition? Who dominates the market? Which competitors are ahead and why? sstomers react to price increases or decreases? How important is your product or service for your How can you react In the competitive analysis you should get to know not anly our customers, but also your competitors and aossible competitive advantages: ‘+ How quickly should you enter the market? ‘+ what are the dangers of entering the market? + who offers similar range of products and how many competitors are there?+ What do your competitors do well and what can you do better? Stertup Guide ‘+ How similar is your target market to that of your competitor? Analysis of the customer industry IONOS (ntipsy//wiciones.com/startupguide/) ‘The analysis ofthe customer industry identifies the industries that achieve the highest sales or turnover. In daing so, you should again refer to your defined market. You can then analyze the structure and attractiveness of the industries with regard to the various sales aspects. Asa result ‘of your analysis you can identily the target groups and thelr various Industries and you can determine customer requirements and customer behavior. Based on the results, you can, for example, develop suitable marketing strategies for your business. ‘The following questions should be answered: ‘+ How high are the revenues generated inthe particular industry? + Which company is the market leader? ‘what are the current trends in the industey? ‘Which innovations have been able to advance the industry? Potential analysis of the target market: how will the market develop in the future? ‘Ammarket analysis does not only reveal the past and current state ofa market, but also the trend of ts future development. For this purpose, the potential analysis highlights potential employees, market entry barrier, success factors, as well as current developments and trends. forecast of the market developments particularly important for your sales planning and for possible investors Conclusion \With the help of a market analysis, Businesses can gain valuable information about a certain market. Ifyou are setting up a business, want Investigate your current market, or simply look at new markets, market analysis helps you to identelfy and assess the opportunities and risks of Jn the basis of a market analysis, you can develop concrete marketing strategies and successfully implement your business idea,Be prepared for holiday shopping season and turn offine visits into online sales geamrygrexsiabout Smal Business Saturday (reostawn ions com/sareupguidegrow yourbusiesssmal business satura Oi 0}! marketing & promotion ideas for business ‘owmiers in our Startup Guide article (ntipss//wmciones.com/startupguide/) Click here (htps://wn.ionos.comvstartupguide/disclsimer) for important legal disclaimers. (©2811.22 | Grom Your susness pst onos.com/saringsdegromjurbusness) sco ysl 150) lo Related articlesNee Ay —) a4 Lean startup: reasons without risk? (025 102018 | cet stated Dropbox, Airon®, Twitter - all these succesful companies have one thing in common: they became successful using the lean startup model. This method questions traitional business concepts and procedures, and instead promises greater flexbilty and innovation. But what do lean startups mean for product development and company culture, and how can you benefit rom these new ideas? pe Be ita|) serif cua lONOS 7 q Ht S| ry Corporate identity: the five most important aspects and how you apply them oa ni2n2 | cron oureusress ‘Whats corporate identiy and how does ithelp your company? The concept of corporate ident alms to standardize the values and behavior nal areas of company. in doing this, you Improve communication within the company, as wellas externally, and se your corporate identity as driving force to establishes ang strengthens your pasion in the market. This guide wll explain which aspects em te Sm mM BloSaving taxes - a guide for the self-employed (020082019 | Grow Your susess How can | save on tax? This s an eternal question forthe self-employed. In order to be well-versed in questions of tax, and improve your ‘own financial situation, you need the necessary Information: What taxes have you incurred? And what can be deducted fram them? 9 uide Scr NiO eeStartup Guide IONOS sm iones.com/startupguide/) Why do we need market research? © 1801209 | cower bane Market esearch san mnprtant procedure to advance a company or ome decons as an erepreneur Customers and respondents pla an important oe as thelr opinions are animportan indkator of sales opportunites. ts crucial forthe sucesso compary io examine te market tregur intel. So, what does marketresearch mean, and why iit so important fora company? sco thet ier i.Startup Guide Related products IONOS (ntipsy//winciones.com/startupguide/) Email Address See packages? 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