Grow market share and maximize revenue with a market analysis
A long-term growth strategy is essential for the continued success of a company. This can include focusing on increasing market share, entering new markets, finding new customers, or developing new offerings. But identifying the right path to growth that maximizes returns while minimizing risk is a challenge.
To navigate evolving customer expectations, market demand, and economic factors, companies need recent, relevant data, not guesswork, to inform smart growth decisions.
A comprehensive market analysis provides businesses with an understanding of current or potential markets that helps them decide where to sell, what to sell, and who to sell to. By leveraging targeted market insights, businesses are more likely to increase sales, retain customers, successfully launch new offerings, and enter new markets.
In the guide below, we explain when, how, and why you should do a market analysis and give you the tools you need to conduct a 5-step market analysis.
A market analysis presents a comprehensive picture of your target markets, including market size, trends, limiters, competitors, and growth opportunities. Knowing the current and future trajectory allows companies to adapt or divert their strategies and offerings to the most profitable and viable markets.
Gather actionable market insights in five steps.
By regularly analyzing their markets, businesses gain actionable data that they can use to inform their strategies and make strategic business decisions.
Below are some situations that can benefit from market analysis insights.
While many elements can impact sales performance, one key factor is the quantity and quality of your leads. With a market analysis, your company can identify, understand, and effectively target viable leads within specific markets, market segments, and industries
With targeted insights, your organization can evaluate your current markets and spot levers to revitalize your growth through new products to launch, new markets to enter, and potential merger or acquisition targets that capture new product offerings or a new customer base.
Analysis of new and adjacent markets helps determine whether sufficient opportunity exists today — and in the future — to make expansion a smart investment. It also provides a clear assessment of regulatory and legal hurdles, relevant market dynamics, and other issues that may slow or stall market entry, allowing you to navigate these challenges or pivot strategically to pursue a more desirable market.
Analyzing current and emerging competitors helps locate the biggest threats to your sales, market share, or brand position. Identifying your strengths and weaknesses against your competitors enables you to adjust your strategies to gain market share and outpace your competition.
A thorough market analysis identifies current and future trends, innovations, restrictions, and competitors. This insight allows your company to build short- and long-term strategies to ensure continued growth.
A market analysis helps identify new or emerging threats, shifting market demand, and changing customer needs. By analyzing these factors, companies can allocate resources where they matter most.
Grow your market share and maximize revenue with an in-depth market analysis.
Market analysis insights are an investment in your business’s growth and overall success. 95% of companies that use targeted data to inform their growth strategies saw increased revenue, and 86% reported a 4x ROI.
Discover how leading companies leverage market research to increase sales, retain customers, and grow their markets.
The first step to assessing a market is to measure its potential. This will help determine if the market provides enough opportunity to be worth the investment.
Total addressable market (TAM): Identifies the total market demand for a product or service and identifies the totality of the market.
Service addressable market (SAM): Identifies the amount of revenue you can obtain, given the limitations of your business model, by selling your offering to a specific market.
Market demand: Calculates the total quantity of an offering that customers are willing to buy at set prices.
An assessment of market dynamics reveals how various forces within that market affect current and ongoing demand for your offerings. Knowing what to prepare for will set your company up for long-term success.
Customer needs assessment identifies key elements of customers’ experience with a brand, product, or service, including needs, pain points, challenges, purchasing behaviors, and what attributes are essential.
Key market drivers’ analysis will uncover key drivers, threats to growth, and evolving and emerging trends that impact the market’s health and trajectory.
Identify promising markets for growth and make informed investments that can result in increased revenue and positive ROI.
Identifying the rules and market limitations allows you to anticipate and prepare for potential challenges. This includes assessing regulatory, political, legal, social, and cultural hurdles within the market. These market limiters can significantly affect a company by adding additional costs and stalling or blocking certain operations.
Voice of the Customer: Provides critical insight into the customer experience, including expectations, preferences, and habits, to understand how to most effectively reach your target audience through quantitative data analysis and qualitative feedback.
Regulatory Review: Identifes regulatory authorities, industry associations, rules, regulations, industry standards, and certifications relevant to your market and offering. Study the market’s regulatory standards, laws, and pending legislation to understand how they currently affect the market and how they may disrupt it in the future.
Key market drivers’ analysis will uncover key drivers, threats to growth, and evolving and emerging trends that impact the market’s health and trajectory.
Understanding the competitive landscape is critical to market exploration and growth planning. Knowing where your company fits into the universe of competitors in each market can identify strengths and weaknesses and allow you to adjust your positioning to outshine your competitors.
Brand Equity: Measures the strength of your brand and competing brands while identifying how much the role of branding leads customers to use products or services.
Competitive Analysis: Analyzes the competitive landscape relevant to your company and offerings to identify the biggest threats within the market and produce in-depth competitor profiles.
Evaluate companies for potential M&A with a well-defined process for identifying the most promising opportunities.
Markets are seldom static. Instead, they constantly evolve with the entry of new customers and competitors, new products and technologies, and the ever-changing effects of economic factors and buyer behavior. A complete analysis should include a comprehensive strategy for monitoring target markets to remain informed and quickly adapt to new opportunities and challenges.
Market Monitor Strategy: Based on your strategic goals, determine which market conditions you need to track (e.g., consumer spending, inflation). Develop a strategy to track these key factors and use the insights gleaned to adjust market positioning as needed.
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Learn how to conduct your own market analysis by downloading our free step-by-step guide.