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ENTREPRENEURSHIP

SIENA COLLEGE, QUEZON CITY


S. Y. 2018 - 2019
Lesson 5: Analyzing the Market
UNDERSTANDING THE MARKET
At the end of the lesson, you are
OBJECTIVES expected to:

understand the purpose of market


1 research

qualify the benefit of market research;


2 and

illustrate market
3
environment analysis
MARKET
An actual or nominal place forces of demand
and supply operate, and where buyers and
sellers interact to trade goods, services, or
contracts or instruments, for money or
barter.
MARKET RESEARCH
Is the process of assessing the viability of a new
good or service through research conducted
directly with the customer which allows a
company to discover the target market and
record opinions and other input from consumers
regarding interest in the product.
Market Segmentation
The process of defining and subdividing a large
homogenous market into clearly identifiable
segments having similar need, wants, or demand
characteristics .
Factors to be investigated through market research

Trends in the Market Market Segmentation


Factors to be investigated through market research

Information Available SWOT Analysis


Factors to be investigated through market research

Effectiveness of Marketing
BENEFITS OF MARKET
RESEARCH
Tapping opportunities – One of the biggest benefits of
conducting market research is that it enables you to find
out the various market opportunities and makes it
possible to tap into them effectively.
Encouraging communication – Market research helps
you to find out the best way to communicate with your
customers.
BENEFITS OF MARKET
RESEARCH
Minimization of the risks – Another major benefit of
market research is that it helps businesses minimize
risks by taking actions on certain subjects.
Establish trends and market standing – The market
changes continuously and constantly.
Find out possible problems – Since market research
brings out the customer reactions, choices, and
preferences, a business can alter the product while it is
still in the manufacturing or designing process.
TYPES OF
MARKET
RESEARCH
TYPES OF MARKET RESEARCH
Primary Market Research
• done by the business or company itself with the objective of
gathering information that can be used to improve the products,
services, and functions.
• known as field research since it is research done from scratch,
without using any information that is already made available
through other sources.
• Through qualitative and quantitative research methods
Typical questions to answer in the micro-level analysis are:
• Is there a target market segment where one might enter the
market in which one offer customer’s clear and compelling
benefits at a price they are willing to pay?
• Are these benefits, in customer’s minds, different from and
superior in some way-better, faster, or cheaper to what
other solutions currently offer? Differentiation is crucial,
since the vast majority of me-too products fail.
• How large is this segment, and how fast is it going?
• It is likely that our entry into this segment will provide entry
to other segments one may wish to target in the future?
Industry and Competitor Analysis
• Industry and competitive analysis (ICA) is a part of any
strategy development in firms and other organizations.
• It contains a very practical set of methods to quickly obtain
a good grasp of an industry, be it pharmaceuticals,
information and communication technology, aluminum, or
even the beer industry.
• The purpose of ICA is to understand factors that impact on
the performance of the industry, and as well the
performance of firms within the industry.
Competitive Advantage

• Competitive advantages are conditions that allow a


company or country to produce a good or service at a lower
price or in a more desirable fashion for customers. These
conditions allow the productive entity to generate more
sales or superior margins than its competition.
• Competitive advantages are attributed to a variety of
factors, including cost structure, brand, quality of
product offerings, distribution network, intellectual property
and customer support.
THANK YOU!