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How to do a market assessment for your business

A market assessment contains a detailed analysis of your proposed products and services, and then plans for product/service development. Market prospects, opportunities and characteristics critical to the survival and growth of your business need to be analysed.

And Marketing plays a vital role in successful business ventures. How well you market your business will ultimately determine your degree of success or failure. The key element of a successful marketing plan is to know your customers – their likes, dislikes and expectations. By identifying these factors, you can develop a marketing strategy that will allow you to fulfil their needs.

A good market assessment will:

  • Identify your business position in the market, nominate marketing strategies and sets directions for future marketing activities.
  • Define your market, how it works, the current trends and opportunities.
  • Identify your customers by age, sex, income, educational level and residence. Which customers are more likely to purchase your product or service? How can you pitch your marketing campaign to maximise your market share for this customer base? How can you target other types of customers?
  • Analyse and select promotional and marketing strategies, identify future marketing activities, develop reporting systems for marketing activities and develop training for marketing skills.
  • Identify networking opportunities that will help you achieve better market reach.
To develop a marketing plan for your business, consider the following questions:
  • What goods or services do you offer? Are there similar/substitute goods or services available in the market? For what price?
  • Who are your customers? Define your target market.
  • What are the characteristics of your customers - what, why, where and how often do they buy?
  • Is there a market for your product/service?
  • Are your markets growing? Steady? Declining?
  • Is your market share growing? Steady? Declining?
  • Are your markets large enough to expand?
  • Have you defined your market by size, geographic location, life cycle of the product or demographics?
  • What will affect your market? Social trends, the economy, consumer confidence, industrial relations.
  • What statistics and trends can you collect to help with market research?
  • What form of marketing activities will best suit your business?
  • What are the various ways you can offer and deliver your product or service to different customers?
  • How will you attract, hold, increase your market share? How will you promote your sales?
  • What pricing strategy have you devised?
Armed with this information, document your market assessment highlighting the key actions and strategies you can take to get your fair share of the market.
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