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A Beginner’s Guide to Conducting Market Analysis – Part 1

by Content Team | Last Updated: December 28, 2021

When starting a business, one thing people have to understand is that you have to know and understand your audience. Without them, after all, how can we ever build a brand?  Because of this, market analyses are one of the most important steps before a business even begins to operate. This is how you can develop who you’re selling to which helps you focus your efforts and minimize expenses. 

Defining Market Analyses

A business will conduct a market analysis in order to understand its audience. The exact steps may vary but the overall approach results in quantitative and qualitative data which you will then analyze in order to plan ahead. 

The information you can gather from marketing analyses can help you know the buying power of your target audience, their preferences, and other such data that would help you avoid making mistakes.

Significance of a Marketing Analysis

Like we mentioned above, marketing analyses help a business understand their industry better. To get deeper into the details, the results of your marketing analysis should yield data on the development of your industry, identify competitors, and get a better idea of the strategy you need to survive. 

The effect is being able to create competitively priced products that match your customers’ needs, a marketing campaign that addresses the right questions, and the sustainable development of your business. 

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Steps in Conducting a Market Analysis

A market analysis isn’t just some kind of bonus step you can take. For example, for individuals taking out loans from banks for their business, a marketing analysis might be required just to prove the profitability of your business. 

As such, it is important for most people to understand just what happens in marketing analyses, even better if they know how to conduct one. 

You can expect a marketing analysis to proceed as follows: 

1. Overview of the Industry

First off, you will have to develop an understanding of the industry as a whole. This will entail studying the trends, who the “big players” are, and how fast you can expect to grow given that information. 

This will be one of the biggest factors if you are securing investments or loans for your business. With proper industry research, all those involved can see how healthy the industry might be before even starting. 

2. Identifying the Target Market

Next, we bring the focus back onto the people. Indefitying the target market is arguably one of the most important yet most enjoyable parts of the process. Here, we lay down the guidelines on who to focus on when marketing your products. 

But we won’t rush into this. You can break this step down even further and follow a certain flow when identifying your target market. Generally, they are able to give you the following data:

Conclusion

We hope this guide has helped you gain better understanding of how to conduct market analysis for your business. Now, it’s important to remember that there’s a lot more to market analysis than what we’ve covered here so be sure to be on the look out for the second part of this guide.

If you need help with your market analysis or any other aspect of your business, then you’ve come to the right place. Luxury Sandbox offers full-service digital marketing services in Kona. Contact our digital marketing experts who specialize in jewelry marketing to discover more about how we can help your business.

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