Importance of Market Analysis
- Amruta Bhaskar
- Aug 6, 2020
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Imagine having the skills of a data analyst and the marketing know-how of a marketing professional. This hybrid role is known as a marketing analyst, and they have a unique blend of marketing and data skills.
They bridge the gap between marketing and analytics by bringing data into business decisions. Through careful study of the market, a marketing analyst makes predictions to help the business grow, then backs up those predictions by gathering data, analyzing it, and presenting it. A market analysis provides information about industries, customers, competitors, and other market variables. You can also determine the relationship between supply and demand for a specific product or service. Based on these insights, you can make more informed decisions about possible marketing strategies.
They also manage to consistently prove themselves useful to the companies that employ them.
Marketing professionals with skills in data analysis have made large positive impacts on many businesses in the last few years and other companies are beginning to catch on. In fact, according to the U.S. Bureau of Labor Statistics, the job outlook for the market research analysts are expected to grow 20% by 2028, which is much faster than average.
While every company can benefit from hiring a marketing analyst, there are some companies with whole departments dedicated to marketing analytics. These companies, like Salesforce, Google and Facebook offer some of the best marketing analytics roles.
It should be noted that according to Glassdoor, the average pay for a marketing analyst is $55,000. However, all three of the companies covered in this post pay well above market. Continue reading to learn more.
To carry out a market analysis you will require reliable information. Generally speaking, small companies tend to carry out the necessary research for their market analysis themselves. Larger companies, on the other hand, often commission market research institutes to do it for them. A market analysis can be carried out using various methods of data collection. A distinction is made between primary and secondary research.
With primary research, experts from a target market are interviewed to collect new data. The advantage of this is that it is still your research purpose in focus. This way, you can collect the data you need for your market analysis. In contrast to this, secondary research uses existing data records from previous surveys. This can be collected both internally and externally. By opting for secondary research you can save both time and money because you don’t have to conduct costly interviews and evaluation. Sources for representative data are, for example, the Federal Statistical System, professional chambers, annual reports of other companies, or trade journals.
If you want your business plan to be successful, you will need to carry out a market analysis. A comprehensive market analysis forms the basis of the development of a marketing strategy and concrete marketing measures.
Further reasons for conducting a market analysis:
With market analysis, you can back up your business idea with figures, data, and facts, and therefore provide a convincing business plan.
You can recognize market the potential at an early stage and avoid making the wrong decisions.
You can identify any existing knowledge gaps and fill them in on time.
Market analysis shows you which competing products are already on the market.
With market analysis, you can identify the market entry barrier and estimate the market attractiveness.
An effective market analysis will include an accurate description of the target market and a thorough market research. It conveys a holistic picture of a specific market. The market analysis consists of five different areas in which information is collected and analyzed.
A market analysis does not only reveal the past and current state of a market, but also the trend of its future development. For this purpose, the potential analysis highlights potential employees, market entry barriers, success factors, as well as current developments and trends. A forecast of the market development is particularly important for your sales planning and possible investors.
With the help of market analysis, businesses can gain valuable information about a certain market. If you are setting up a business, want to investigate your current market, or simply look at new markets, market analysis helps you to identify and assess the opportunities and risks of a market. Based on market analysis, you can develop concrete marketing strategies and successfully implement your business idea.