If you’re entering a new industry or trying to look for new ways to increase your existing business, being able to conduct marketing analysis in your industry is important. Analyzing the industry is meant to review different types of markets and financial factors that will affect your business and any competition you may come across.
Guiding Analysis Principles
There are two main methods that businesses can do to conduct an industry analysis. One of the first is through quantitative means. This means using mathematical methods to forecast and assess data. Qualitative analysis is using your own judgment to review the information you curate.
Using these methods you can assess your competitor’s space in the market and begin conducting a comprehensive research review of your industry. While using a mix of these two, you’ll be able to create and implement strategies to guide your business.
You should utilize your resources that are on hand. Money Morning can be useful to check out what analysts are saying in regards to qualitative data, while using their numbers to conduct your own quantitative research.
Conducting the Research
Generally, businesses will either hire an outside firm to gather data or embark on their own research. If you are doing the research by yourself then the first order of business is to create your own list of competitors. Determine what types of questions you’re going to ask.
Some of these questions include asking what types of products or services do you offer compared to your competitors. Some of the analysis will go into how much money are your competitors making and are you targeting the same markets and audiences as they are. Rank the competition in terms of customer service, prices and the quality of their products or services.
The idea behind looking at these factors are to assess if your business can distinguish itself while being able to compete and make profit.
Deeper Examination
Once you’ve gotten the first preliminary information of your analysis, begin to place and collect the data that you’ve received. This data is valuable information from sources that include articles, marketing reports and external resource. Don’t forget to look directly at the source as well. This means checking out the direct companies advertising. These will offer great insight to how the business operates and goes back to what type of audience and market your competitor is trying to target. Review your competitor’s financial data. While you shouldn’t use dishonest methods to figure out their situation, by posing as a customer or client. You’ll be able to gather some information; this is an accepted industry standard.
Now that you’ve collected most of this data from various sources, it’s time to get down to the deeper analysis and draw some conclusions. The idea is to figure out your main competitors’ strengths and where you can capitalize on that. Meanwhile, look into their weaknesses and see how that compares to your business.
A major part of the analysis will consist of checking out the competitor’s product or service. Do a comparison of side-by-side features figuring out the differences and weighing the options.
Comparing Features in the MarketÂ
So far you’ve gathered the information through various means that include taking data from public, private and researched sources. You’re either researching it on a quantifiable, qualitative or mix of both basis as well.
As you are embarking on this market analysis, you’re not only researching the competition but your own business as well. While comparing features, see how yours work and if customers are able to have their needs met by using your products. If there are things you do better than your competition, can you keep this up and create an even better product or service to stay as a market leader. Staying ahead of the curve is what will help you outpace the rest of the competition.
Evaluating the strengths of competitors will allow you objectively put yourself on where you exist in the market. Along with that, looking at weaknesses will solidify or you will fall into the same traps or be able to capitalize and improve the weak parts of your business.
Overtime you’ll be able to pivot and increase on those advantages inherent in the company, maintaining a lead while future problems will cease to exist, because your business has made it a point to work on those problems. Market research is the way to go about doing all of this and succeeding in your industry.
Amelie Holt is a business woman who also gets great pleasure from the stock market. She writes about business matters and the stock exchange in her insightful articles which appear online.
