A market analysis provides insight into the market. Companies can then use this insight to make marketing decisions. The analysis can identify the market segments and their needs. Based on this information, companies can detect market opportunities. They may then decide to approach a certain group of new customers, refocus on existing customers or find customers that resemble their current ‘top customers’. We explain how to use market analyses effectively.
A market analysis may provide input for a business case or a new business concept. It can also provide insight into trends, target groups (based on demographic characteristics, for example) and the needs of these target groups. Additionally, a market analysis may be used for:
Suppose that the market analysis is used to find new customers and that these new customers must have the same profile as the current ‘top customers’. In this case, a customer analysis can supplement the market analysis. The following steps must then be taken:
The sector and the market
You now know the current state of the market and where opportunities may lie. Additionally, you have insight into your customers, and in particular you know who your top customers are. Now it is important to match up the analyses and start approaching customers which resemble your top customers with a suitable proposition - obviously in the segment offering the best opportunities. You can do this by expanding your databases and research results with third party data. Suppose that your top customers are companies with over 500 employees in B2B services with their head office in the north of the Netherlands. In that case, you can start looking for contact information of similar companies and you can simultaneously request their financial characteristics. This makes sure that you avoid focusing on companies that fit into your target group profile, but are classed as late payers.