Market Analysis

3 Key excerpts on "Market Analysis"

• 

  eBook - ePub

  Appraisal and Selection of Projects

  A Multi-faceted Approach

  • Utpal K. Ghosh(Author)
  • 2021(Publication Date)
  • CRC Press

    (Publisher)

  3 Market Analysis

  3.1 Introduction

  Market is a group of potential customers who are likely to buy products or services offered by an organization. Characteristic of a market is the act of exchange. Some people (consumers) acquire the products they need most, and other people (suppliers), who are capable of satisfying the need, provide these to the former. Thus, both sets of people feel satisfied by this exchange. Typically, both these sets of people like to maximize their own gains.

  Market Analysis provides ideas about the likely market demand of such products or services, their competitiveness, locations, etc. It encompasses the current as well as future scenario. Its objective is to analyze the potential market size and its value. It also provides an insight about how the products or services compare with those offered by the competitors in quality, price and availability.

  3.2 Market Environment

  The fast-changing technological development during the later part of the 20th century has changed the market trends throughout the world beyond recognition. Consequently, all organizations have to continuously review and monitor the scenarios that are prevailing outside as well as inside the organization to ensure that it adapts to the changing market scenarios. These scenarios are collectively known as market environment in business parlance.

  Market environment consists of two categories. The first is external category, which is outside the direct control of the organization and is generally termed ‘macro-environment’. The second category is termed ‘microenvironment’ and relates more to the specific segment of the industry, and the concerned organization has a certain degree of control over it. Although these two categories are generally specific and independent, they do have occasionally some influence over each other.

  Sign up to read

  Learn more about book
• 

  eBook - ePub

  Strategic Marketing

  An Introduction

  • Tony Proctor(Author)
  • 2014(Publication Date)
  • Routledge

    (Publisher)

  Chapter 5

  Market Analysis

   

  INTRODUCTION

  The strategic window opens out upon a market. Market Analysis builds on customer and competitor analysis to allow strategic judgements to be made about a market and its dynamics. One of the primary objectives of a Market Analysis is to assess its prospects for participants. Another key purpose of Market Analysis is to understand the dynamics of the market. One needs to identify emerging key success factors, trends, threats and opportunities and to develop strategic questions that can guide information gathering and analysis.

  Measuring the size of the market, identifying the trends and being able to predict how the market is going to develop in the future are critical factors in understanding the state of strategic windows. Organizations need to have a firm grasp of the methods of assessing market size and forecasting the size to which a market will grow. Both short- and long-term forecasts are important. Long-term forecasts are most useful for medium- and long-term strategic planning purposes, whereas short-term forecasts enable organizations to monitor the effectiveness of earlier long-term forecasts. Market size and projected market growth rates are not the only important dimensions of Market Analysis. One also needs to understand the factors which influence the profitability of a market at its various stages of development.

  Trying to understand the key factors which govern a firm's success are very important. This moves us on from simply looking at the profitability of a market to consideration of cost structures, distribution systems and related trends and developments.

  DIMENSIONS OF Market Analysis

  This varies somewhat according to the context (Figure 5.1

  Sign up to read

  Learn more about book
• 

  Available until 4 Dec |Learn more

  Strategic Marketing

  An Introduction

  • Tony Proctor(Author)
  • 2002(Publication Date)
  • Routledge

    (Publisher)

  five

  MARKET

  ANALYSIS

  INTRODUCTION

  The strategic window opens out upon a market. Market Analysis builds on customer and competitor analysis to allow strategic judgements to be made about a market and its dynamics. One of the primary objectives of a Market Analysis is to assess its prospects for participants. Another key purpose of Market Analysis is to understand the dynamics of the market. One needs to identify emerging key success factors, trends, threats and oppor tunities and to develop strateg ic questions that can guide information gathering and analysis.

  Measuring the size of the market, identifying the trends and being able to predict how the market is going to develop in the future are critical factors in understanding the state of strategic windows. Organizations need to have a firm grasp of the methods of assessing market size and forecasting the size to which a market will grow. Both short- and long- term forecasts are important. Long-term forecasts are most useful for medium- and long-term strategic planning purposes, whereas short-term forecasts enable organizations to monitor the effectiveness of earlier long- term forecasts. Market size and projected market growth rates are not the only impor tant dimensions of Market Analysis. One also needs to understand the factors which influence the profitability of a market at its various stages of development.

  Trying to understand the key factors which govern a firm’s success are very important. This moves us on from simply looking at the profitability of a market to consideration of cost structures, distribution systems and related trends and developments.

  DIMENSIONS OF Market Analysis

  This varies somewhat according to the context. However, the following are often included:

  Sign up to read

  Learn more about book