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Key Elements of A Market Analysis - Essay Example
Market analysis consists of several key elements which help to analyze its potential and create a market plan. Market Analysis allows a company to identify the maximum units of a defined product or service capable of being purchased within a designated geographic area, during a designated time period, when supported by a realistic level of marketing activity…
The market can be worldwide or just a three states. These boundaries are usually defined by the geographic areas in which the firm expects to be competing. The time component of market is affected by the stage of a product or service in its life cycle and the specific needs of the data user. An assessment of long-term potential is needed because major financial decisions have to be made about long-term commitments for plant, equipment, personnel, and the like. For existing products, market potentials usually cover shorter time periods because their primary purpose is to guide short-term decisions about production or promotion. However, as a product or service enters the later stages of maturity, longer-term potentials might again be sought to determine if and when it should be withdrawn from the market (Eden, Ackerman 1998).
Regional demographic characteristics and population growth can help to identify number of potential consumers and main trends in sales. Slower population growth combined with increased competition (from both domestic and foreign sources) means that the market will become increasingly competitive. The firms that will succeed will be those that make best use of information. Using information effectively is not an easy task because of the vast amounts available. ...