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[M251]Market Analysis Business Plan

by Vivien Wu, Viv

Niche market is a subset of the world you are trying to market to. There are many advantages in having a niche market. It allows you to focus your effort and utilize your resources more effectively. Niche markets are smaller, less competitive markets, where fewer people are going after. For example, selling made-up to "Women" is a broad scope, and it properly has too many competitions. Try selling made-up to "Environmental conscious women", is a narrower population. "Environmental conscious women" would properly "Environmental conscious" in other products too, there you have indentify and a cross selling niche market too. Going after a niche market also differentiates your business from your larger competitors'. Who knows you might start up small, and become big someday. With advent the internet the dream could be realized sooner, rather than later. So it's important to find a niche as you do your marketing plan.

How do you find a niche? First look at yourself, and ask "What is unique about me?" You would be surprised the things you can come up with, or if you don't know, ask a love one to tell you. Your look, your education, your ethnicity, your background, your experience, your religious believes, your family, your political views, your hobbies, your values, your temperament, your believes, etc. Look for ways to blend "Your uniqueness", your niches, into your business.

Then ask yourself, "What are my passions?" Are you passionate about art? Teaching literature? Breeding horses? Raising children? Find cure for cancer? The environment? Or what are your childhood dreams? Your passions are your forces to lead you through obstacles. It's the passion that would allow you to pour out your heart and touch the audience. Connecting with your audience or your prospects is a key to making sales. If you have a book of clients, you can also indentify the commonality between them, are they from a certain profession? Do they all share the same culture background? What is sepcial about this group?

After jogging down the niches markets you have in mind, start doing some research on each of them to see the popularity. You need to find trade offs between a vase audience with lots of competition and a tight niche market with a small population. If you can turn everyone in the niche market into a customer, you are much better off than staying in the general market.

Type some keywords into the search engines, and see the number of sites that is returned. If the search result comes back as a small list, congratulations, you have found a good list. If the result contains a large list of sites, that it is a saturated market, you should find another niche. The internet is very resourceful, you can visit forums, read up on eBooks and articles to collect your information about the viability of your idea or niche market.

In fact, many small business owners don't understand the process or complain that conducting a market analysis is too complicated or too expensive and wonder why or if it is necessary.

What is market analysis?

In the most basic terms, a market analysis is an assessment of:

- A particular problem or opportunity in a market.
- The needs of the target market relating to the problem or opportunity.
- Ideas for marketing a particular product or service that fills the needs of the target market.

When should you conduct a market analysis?

- When you are starting a business.
- When you are entering a new market.
- When you are considering a new product or service.

Why should you conduct a market analysis?

- To minimize business risks.
- To understand the problems and opportunities.
- To identify sales opportunities.
- To plan your marketing/sales approach.

The process of conducting a market analysis can be divided into
three parts:

Part 1 - Understanding Market Conditions

This gives you basic information about your entire market -- the size, the competition, the customers.

Part 2 - Identifying Market Opportunities

This gives you more targeted information about potential problems or opportunities in the potential market, and includes information about growth, current and future trends, outside factors and more information about specific competitors.

Part 3 - Developing Market-Driven Strategies

Here is where we get into what market research does for you. It helps you to pinpoint opportunities to grow your business. By understanding the market and knowing what opportunities are available you can create a marketing strategy that leaves your competitors in the dust!

Here are 10 questions that can help you get started:

1. What is the market I want to reach?

- Who are they? (Basic Demographics)
- What is their biggest problem in relation to this market?
- Are their needs being met by the products or services provided in this market?

2. Who is my competition in this market?

- Are they successful in this market?
- Are they marketing a similar product or service?
- What is the market share of the three biggest competitors in this market?

3. Is there room for growth in this market?

4. What is the size of this market?

- Is there room for growth?
- Is the industry growing? Stable? Saturated? Volatile? Declining?

5. How is my product or service different from the competition?

6. How can I reach this market?

- How is my competition currently reaching this market?
- Is it the most effective way?
- What are the alternative ways of reaching this market?

7. What are the business models of my competition in this market?

- Are they effective?
- Is there a way to do it differently or better?

8. What do customers expect from this type of product or service?

- What are the core competencies of this product or service?
- What would make the product "new" "different" or "better" for the customer?

9. How much are customers willing to pay for this product or service?

10. What is our competitive advantage in this market?

Knowing the answers to these questions will not only help you figure out if there is a need for your product or service, it will help you figure out the best ways to reach your customers, price your products or service and ultimately make more sales!

Article Source : Why Is It Important To Plan

About Author

Both Vivien Wu & Rodney Boettger are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Vivien Wu has sinced written about articles on various topics from Business Plan, PPC Advertising and Work From Home. Vivien Wu publishes work from home resources and articles on her website: