How to do a Market Analysis and Environmental-Trend AnalysisWhat’s Involved in a Market AnalysisTarget MarketCollecting Data on the Target MarketBehavior of the Target MarketNeeds of the Target MarketTwo External EnvironmentsWhy Must We Do This?How Is the Analysis Done?Suggested Five Subtopics for External Analysis PaperGot Questions?Writing the PaperGradingQuestions?How to do a Market Analysis and Environmental-Trend AnalysisDr. Stan AbrahamMHR 423Fall 2003What’s Involved in a Market AnalysisDecide on your target marketHow many of them, how fast growing (or declining), how dispersed?How do they buy and use the product, where do they buy, how respond to various advertising and promotion, how price-sensitive?What are their needs (basis for your value proposition), and are these changing over time?Target MarketCan be defined…Geographically—global, national, local, etc.Demographically—using variables such as age, income, sex, householdsBusiness type or size—“middle-market banks,” “businesses employing >100 people”By need—two-income families need convenience, Internet companies need exposure, people on low-carb dietsCollecting Data on the Target MarketHave to do a lot of researchThe research pays off in your greater knowledge about your marketFor consumer marketsCensus dataState and local government dataFor business marketsResearch the industry segment that comprises your marketBehavior of the Target MarketFind out everything you can about these customersHow do they buy?Where do they buy?How do they use the product?How do they respond to stimuli?How price-sensitive are they?How often do they buy?Is the user the buyer?Needs of the Target MarketWhat needs, desires, or wants do these customers have that your product satisfies?Are these needs changing?What is the (customer) value proposition for your company?Why should customers buy your product and not competitors’ products?Remember, people buy benefits, not productsThey buy vision, not glassesThey buy heat, not firewoodThey buy the ability to communicate anywhere, not a cell phoneTwo External EnvironmentsThe Task EnvironmentIndustry analysisCompetitors and competitive analysisMarket analysis (customers)General EnvironmentDemographicEconomicPolitical/legalRegulatory/legislativeTechnologicalSocio-culturalLifestyles, attitudesWhy Must We Do This?Businesses don’t exist in a vacuumWhat’s changing out there could affect usUnforeseen competition could wipe us outUnforeseen costs could cripple usSo could a downturn in the economyLet’s not talk about a new regulation to comply withWe need to get a sense of changes that might occur in the next five yearsHow Is the Analysis Done?Through doing researchThe InternetArticles in the Business Press (Internet again)Trade publications and people in the industryHiring competitive-intelligence professionals (not you)Don’t forget to cite your sources, and don’t cut and paste—that’s plagiarismFor information you simply cannot getMake informed/educated guessesMake inferencesGo to the next topic…Suggested Five Subtopics for External Analysis PaperIndustry analysisCompetitors and competitive comparisons(Target) Market analysisEconomic and Technological trendsAll the other trendsGot Questions?Ask meI may not know the answer but may know where to lookI have many books and resources in my officeI may know other profs that could help (so might you)Ask other profs or knowledgeable people you may knowWriting the PaperUse an outline (keeps your research relevant)If you have nothing to say under a particular heading, omit itUse only those headings where you can show data or analysis that will be useful in planning for your businessDon’t forget that “data” is a plural wordRemember to reserve a fair amount of time for editing, editing, editingGradingThis is the only paper where each person in the group should contribute one of the needed topics (should be that person’s work, not a group effort)Divide the topics up among you as equally as you canClearly state which person did which
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