By the end of the presentation,

one should be able to:

1. Define what market analysis is all about?

2. Understand the market analysis concept and dimensions.
3. Evaluate the market attractiveness using the marketing tools.
 Introduction

A marketing analysis of a company is a valuation into the type of

market for the business’s products that are available to consume. This is
done through a thorough research using marketing tools such as
PESTEL analysis, SWOT analysis and the Porter`s five forces analysis.
This gives a firm an understanding into the type of market they wish to
enter, making them aware of the possibilities of market growth or
failure of the business and further implications on the potential of and
the direction in which the business may be headed. 
What is Market Analysis

• According to Stanford University (2014), market analysis can be

defined as, the assessment of primary and secondary data to
determine the suitability of a certain market to an organisation
to invest in.
• Market analysis is part of strategic analysis and it focuses on
customer and competitor analyses (Jooste, Strydm, Berndt &
Plesis 2008).
Why market analysis is necessary?

• It allows the organisation to anticipate future projections and return

on investment
• Helps the organisation prepare for a new market/launch a new
product/start anew entity
• Gives guidance to strategy formulation
 Why market analysis is necessary? Cont…..

• Problem identification
• Establishes the attractiveness of the market/segment is to the
organisation
• Assist the company on the level of investment required for the
intended market
• Helps the organisation in evaluating its position
• Gives understanding of the market i.e. customers/competitors
Dimensions of a market analysis

1).Actual and potential size of the market.

• Level of consumption of the product from competitors.
• It can be measured by getting information from; published reports of
government bodies like ZimStats, Commerce associations e.g.
Zimtrade, Financial reports of competitors and Market research
Actual and potential size of the industry

• Potential growth is essential for the organisation to enhance its return

on investment and profitability.
• Product life cycle should be taken into account.
Dimensions of a market analysis. Cont…..

2) Market growth
• Technology available e.g. digital vs analogue to radio stations in Zimbabwe
3) Market profitability
• Buying power of the customers e.g. car sales prior the separation of the
RTGS and FCA accounts.
4) Cost structures
• Costs affiliated to value addition
5) Distribution systems
• new channels can lead to competitive advantage
Dimensions of a market analysis. Cont….

6)Trends and developments

• Forecasting of future events and be able to adapt to new market
demands
• Withstand competition from new entrants
7) Key success factors
• These are factors which gives an organisation a competitive advantage
• E.g. Brand perception by customer
• Advertising and sales promotion activities
• Quality control
Conducting a market analysis using Porter’s
Five Forces theory
 Conclusion

• In conclusion, it is recommended that an organisation should analyse

the market from time to time with regards to the constant changes
taking place in the economy. This would allow the business to flourish
in the possible innovation and creations of products, due to first-hand
knowledge of the various changes occurring, or it can also allow the
company to brace itself if there should be a setback in economy.