LESSON 1.2.

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Market Need Analysis
 Hello!!
Quick questions:
×HOW DOES MARKET WORKS?
×IN WHAT WAYS COULD YOU POSSIBLY AVOID THREATS?

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Define the Market Need for the New Business
In analyzing the market need, the ff. questions should be asked:

1. Who will get interested in my product?

2. What does the market need or want?
3. Who is buying the product? What and how much? Or
how, where and why are they buying those goods or
services?

Determining the marketability of the business is typically done in the context of creating a business
plan and performing an analysis of the competition. Consider whether the business offers a new
solution to an old problems or complements on emerging trend. Focus on ‘benefits’ of what your
product or service does.

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 Market
Analysis
A market analysis is a quantitative and qualitative assessment of a market
ability to respond positively. It looks into the size of the market both in
volume and in value, the various customer segments and buying patterns ,
the competition, and the economic environment in terms of barriers to
entry and regulation in the industry.

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How to do a

MARKET
ANALYSIS?

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 1.DEMOGRAPHICS & SEGMENTATION

× Demographics is the statistical characteristics of

human population(as age or income) used especially
to identify markets.

× Segmentation is the process of dividing into

segments with similar characteristics.

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2. TARGET MARKET
× This is the type of customers that are focused
within the market. It is focused on the more
qualitative side of the market analysis by
looking at what drives the demand.

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3. MARKET NEED
× Investors must determine the needs of the
market through analysis based from research
conducted focusing on their needs. Identify
what the customer wants to classify their
needs.

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4. COMPETITION
× Analyze competitor’s angle to the market in order
to find a weakness that company will be able to
use in its own market positioning. One way to
carry the analysis is to benchmark the competitor
against each other of the key drivers of demand
for the market and present the results in a table.

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BARRIERS
TO
ENTRY

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 1. INVESTMENT (project that
requires a huge investment) 7. LOCATION (place, venue
where the business is located)

2. TECHNOLOGY (application 6. ACCESS TO DISTRIBUTION

of the combination of scientific CHANNELS (exclusivity with
and engineering knowledge) distributors, availability of
intermediaries)

3. BRAND (the huge marketing

costs required to get to a certain 5. ACCESS TO RESOURCES
level of appreciation) (exclusivity with suppliers,
accessibility of suppliers)
4. REGULATION (licenses and
permits in particular)

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 Thanks!
Any questions?

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