Business professionals perform or learn from market analysis before they create business plans to describe factors such as proposed business services or products, target demographics, and projected profits. Some of the most common types of market analysis services are industry analysis, competitor analysis, and the analysis of target markets. Professionals in the marketing field might also provide strengths, weaknesses, opportunities, and threats (SWOT) analysis. All of these market analysis services can be provided by market research firms that specialize in providing businesses with objective perspectives that executives can use to make educated decisions.
Market analysis services that focus on a specific industry tend to be used by professionals who want a better understanding of the factors affecting their businesses. An executive in the manufacturing industry, for example, could hire a market researcher to provide information regarding projected revenues specifically in this field. He or she might also expect to find out who the major players are in this industry. A rundown of technological developments and related demographic information also are included in this kind of analysis.
When researchers provide competitor analysis, they provide valuable information to executives about how businesses similar to their own act. These market analysis services might provide executives information regarding how much a competitor spends on advertising and what kinds of profits a competitor generates for specific products or services. An executive might also want to know how a competitor defines his or her business in an industry. It is common for businesses to carve out niche markets that are unique, and therefore more profitable.
Analysis of target markets often regards who and where executives should sell products and services. When executives request these market analysis services, they often want to learn about the demographics they should target for sales and to find out how these demographics can be reached. Focus groups, surveys, and the study of spending habits often are included in this kind of analysis.
SWOT analysis differs from other market analysis services because it doesn't pertain to a particular facet of a business. Instead, this kind of analysis can be used as a tool in almost any kind of decision making process. When faced with a question or problem, individuals in a workshop or meeting might create a matrix on which they map out the strengths, weaknesses, potential opportunities, and potential threats of any move or strategy. If this kind of analysis is successful, participants can get a clear understanding of a problem, manage risk, and reap the greatest benefits.