Complete Guide for Writing a Market Analysis—With Templates!

Summary

This video script by Mike Ploger and Visme introduces the concept of turning your business into an 'analytical machine'. It emphasizes the importance of market analysis for informed decision-making, identifying growth opportunities, and overcoming obstacles. The script outlines the benefits of market research, including staying ahead of trends and measuring business performance. It also provides a step-by-step guide on the components of a market analysis, from industry description to SWOT analysis, and suggests tools for market projections and PESTLE analysis. The goal is to equip viewers with the knowledge to enhance their business strategies and compete effectively in their industry.

Takeaways

• 📈 Market analysis is essential for identifying growth opportunities, developing strategies, and positioning your business effectively.
• 🔍 40% of marketers use consumer research to make decisions, emphasizing the importance of understanding the industry, competitors, and customers.
• 🛠 Market analysis involves continuous effort to maintain peak market knowledge, including insights into market size, customer purchasing habits, barriers to entry, and competitive landscape.
• 📚 The first benefit of market analysis is making informed decisions by spotting risks, threats, and opportunities for growth.
• 👀 Staying ahead of the curve involves market forecasting to predict trends, financial projections, and characteristics of the target market.
• 🗣️ Listening to the market through customer feedback is crucial for understanding their needs and preferences to provide targeted solutions.
• 📊 Seven key components of a market analysis include industry description, market description, consumer analysis, competitive analysis, market projections, and analysis of external environmental factors.
• 📈 Use tools like SWOT, Porter's Five Forces, and strategic group analysis to evaluate internal strengths and weaknesses, as well as external opportunities and threats.
• 🌐 Market projections are vital for assessing the sustainability of your business by forecasting market trends and sales volumes.
• 🌳 PESTLE analysis helps in understanding and preparing for external factors like political, economic, sociological, technological, legal, and environmental influences on your business.
• 📝 Customize templates, like those from Visme, to visually represent market data and trends, making it easier to communicate your analysis to stakeholders.

Q & A

What is the primary purpose of creating a market analysis?

The primary purpose of creating a market analysis is to help businesses find opportunities for growth, develop strategies to overcome obstacles, and better position themselves in front of customers.

How does a market analysis benefit a business in making informed decisions?

A market analysis helps businesses make informed decisions by providing insights into the size of the market, demand for products or services, customer purchasing habits, barriers to entry, competition, and other market forces.

What are the seven components of a market analysis mentioned in the video?

The seven components of a market analysis are: industry's description and outlook, market segmentation, market trends, competition analysis, market projections, external environmental factors, and marketing strategies.

Why is it important to study and note market trends?

Studying and noting market trends is important because it helps businesses predict changes in consumer preferences, market demographics, technological advancements, demand for products or services, pricing influences, and other factors that impact the market's direction.

How can businesses gather information about their competitors?

Businesses can gather information about their competitors by investigating their websites, social media channels, marketing materials, newsletters, reviews, and by purchasing their products. They can also use frameworks like Porter's five forces and SWOT analysis.

What are Porter's five forces in competitive market analysis?

Porter's five forces in competitive market analysis are: bargaining power of suppliers, bargaining power of buyers, competitive rivalry, threat of substitute products, and threat of new entrants.

What is the significance of making market projections?

Making market projections is significant because it helps businesses predict trends, financial projections, characteristics of the target market, and plan accordingly. It ensures that businesses can anticipate changes and adapt their strategies to maintain sustainability.

Why should businesses analyze external environmental factors?

Businesses should analyze external environmental factors because these factors can disrupt business processes. Understanding political, economic, sociological, technological, legal, and environmental factors helps businesses prepare and resolve potential issues.

What is a PESTLE analysis and what does it include?

A PESTLE analysis is a model used to analyze external environmental factors that can impact a business. It includes political, economic, sociological, technological, legal, and environmental factors.

How can businesses use templates to create effective market analyses?

Businesses can use templates like those provided by Visme to create effective market analyses. These templates allow for easy customization of colors, fonts, data, and information to visually represent statistics and trends, making the analysis more accessible and understandable.

Outlines

00:00

📊 Embracing Analytics in Market Research

This paragraph introduces the concept of applying analytics to market research, drawing a parallel to how baseball has evolved into an analytical sport. The speaker, Mike Ploger, and Vismi, aim to provide insights into creating a market analysis that can enhance business growth. They highlight the importance of understanding the market, competitors, and customers to make informed decisions. The paragraph outlines the benefits of market analysis, such as identifying opportunities for growth, overcoming obstacles, and positioning the business effectively. It emphasizes the continuous effort required to maintain market knowledge and the insights gained from understanding market size, customer purchasing habits, barriers to entry, and competitive landscape. The speaker encourages viewers to think analytically to stay ahead of trends and measure business performance effectively.

05:02

📈 Components of a Market Analysis

The second paragraph delves into the specifics of what constitutes a market analysis. It lists seven key components that should be included: industry description and outlook, market description, customer analysis, SWOT analysis, competitive analysis, market projections, and analysis of external environmental factors. The speaker explains the importance of each component, such as understanding industry trends, predicting profitability, and identifying market opportunities. The paragraph also suggests tools and resources for gathering data, like government agencies, trade associations, and various online platforms. It emphasizes the need for ongoing research and analysis to stay current with market trends and competitive dynamics, and it introduces methods like Porter's Five Forces and SWOT analysis to evaluate the competitive landscape and business positioning.

10:03

📉 Market Projections and Environmental Analysis

The final paragraph focuses on the importance of making accurate market projections and analyzing external environmental factors that can impact business operations. It stresses the need for solid research to forecast market trends and sustainability, recommending resources like statista and Euro monitor for data. The speaker also introduces the PESTLE analysis model as a tool for examining political, economic, sociological, technological, legal, and environmental factors that could influence the business. The paragraph concludes by encouraging viewers to apply the tips and processes discussed in the video to improve their business standing in the industry. It ends with a call to action for viewers to like the video and subscribe to the channel for more business-enhancing content.

Keywords

💡Market Analysis

Market Analysis is a comprehensive assessment of a company's market position, including its customers, competitors, and the overall industry environment. In the video, it is presented as a crucial tool for identifying growth opportunities, developing strategies, and positioning a business effectively. The script emphasizes its importance in launching new products, revamping business strategies, and taking on new ventures.

💡Consumer Research

Consumer Research refers to the process of gathering and analyzing data about customers' behaviors, preferences, and needs. The video mentions that 40% of marketers use consumer research to make decisions, highlighting its significance in understanding the market and driving business growth. It is depicted as a way to stay informed about the industry and to make data-driven decisions.

💡Market Forecast

Market Forecast is the prediction of future market conditions based on current trends and historical data. The script discusses its role in helping businesses anticipate revenue, costs, and profit margins, thus allowing for better planning and strategic decision-making. It is an essential component of market analysis for staying ahead of the curve.

💡Competitive Analysis

Competitive Analysis involves evaluating the strengths and weaknesses of competitors within the same industry. The video script uses this concept to explain how understanding the competition can help a business stay ahead and adapt its strategies accordingly. It is portrayed as a continuous process that provides insights into the competitive landscape.

💡SWOT Analysis

SWOT Analysis is a strategic planning tool that identifies an organization's Strengths, Weaknesses, Opportunities, and Threats. The video script introduces it as a framework for evaluating internal and external factors that can affect a business. It is used to strategize and improve business positioning in the market.

💡Porter's Five Forces

Porter's Five Forces is a model that analyzes the competitive forces within an industry that affect its profitability. The video script explains how this model breaks down the analysis into five sections: bargaining power of suppliers, bargaining power of buyers, competitive rivalry, threat of substitutes, and threat of new entrants. It is used to understand the dynamics of the industry and the competitive environment.

💡Strategic Group Analysis

Strategic Group Analysis is a method of categorizing companies within an industry based on similar strategic characteristics. The video script suggests that this analysis can help in understanding how competitors are positioned in the market and what strategies they employ. It is a tool for identifying similarities and differences among competitors.

💡Market Projections

Market Projections are estimates or predictions of future market conditions, including sales volume, growth rates, and market share. The video script emphasizes the importance of making informed market projections based on research rather than guesses, to assess the sustainability and potential of a business.

💡PESTLE Analysis

PESTLE Analysis is a framework for examining external factors that could impact an organization, including Political, Economic, Sociological, Technological, Legal, and Environmental factors. The video script describes it as a way to prepare for and mitigate potential disruptions in business processes caused by uncontrollable external factors.

💡Business Performance Measurement

Business Performance Measurement refers to the process of evaluating how well a business is performing against its objectives and competitors. The video script mentions it in the context of moving beyond guesswork and starting to use data and analysis to assess and improve business performance.

💡Market Positioning

Market Positioning is the strategy of defining the place a product or brand occupies in the market or in the minds of customers. The video script discusses how market analysis can help in better positioning a business in front of its customers by understanding market trends, competition, and consumer needs.

Highlights

Market research is essential for business growth, with 40% of marketers using it for decision-making.

Creating a market analysis helps businesses find growth opportunities and overcome obstacles.

A market analysis provides insights into market size, customer purchasing habits, barriers to entry, and competitive landscape.

Market analysis aids in informed decision-making by identifying risks, threats, and growth opportunities.

Staying ahead of market trends is crucial, and a market analysis can predict financial projections and target market characteristics.

Understanding customer needs and preferences is key, and a market analysis helps in providing targeted solutions.

A market analysis includes seven key components: industry description, market focus, trends, competition, market projections, and external environmental factors.

Utilizing tools like Google Trends and U.S. census data can help in understanding market trends and consumer data.

Porter's Five Forces is a method to analyze competition by examining supplier and buyer power, rivalry, substitute threats, and new entrants.

SWOT analysis is a framework for evaluating a business's strengths, weaknesses, opportunities, and threats.

Strategic group analysis groups competitors based on company size, product features, distribution channels, and pricing policy.

Market projections are important for understanding market sustainability and should be based on firm research.

PESTLE analysis helps in analyzing political, economic, sociological, technological, legal, and environmental factors affecting the business.

Visme offers customizable templates for market analysis, making it easier to represent data and trends visually.

Staying current with industry events and networking with leaders is crucial for continuous business growth.

The video provides actionable tips and processes to improve business positioning and competitiveness in the industry.

Encouragement for viewers to apply the insights from the video to enhance their business strategies and performance.

Transcripts

it's time to get analytical market

research will never be the same and

neither will you after what you'll learn

in this video

[Applause]

[Music]

hello world Mike ploger and vismi are

back at it to dive head first today into

analytics just like baseball has become

an analytical sport it's time for your

business to become an analytical machine

forty percent of marketers leverage

consumer research to make decisions

they're putting in the hours to know

everything they can about their industry

competitors customers and everything in

between that directly grows their

business and while it may seem a little

scary or like a heavy workload to take

on think again in this video fizme and I

will share everything that you need to

know about creating a market analysis

that will help boost your business from

the benefits to components to templates

that you can edit in minutes we've got

you covered shall we

foreign

really dive into the nuts and bolts of

this thing let's just quickly recap what

exactly a market analysis is put simply

it's an assessment of the market duh

right more specifically its purpose is

to help you find opportunities for

growth develop strategies to overcome

obstacles and better position yourselves

in front of your customers it can be

used to launch a new product revamp your

entire business strategy or take on new

Ventures but it doesn't happen all at

once it's a continued effort that keeps

your market knowledge at a peak you'll

have insight into the size of the market

that a man for your products or Services

purchasing habits of customers any

barriers of Entry what your competition

looks like and various other forces

affecting customers and Industry players

writing a market analysis is like

looking into the engine of a car and

understanding why every little component

gets that vehicle from point A to point

B you may be at Point a right now but

soon you'll be sitting pretty riding off

into this concept

our first and maybe most important

benefit to creating a market analysis is

that it'll help you make informed

decisions spotting risks threats and

opportunities for growth is an

opportunity that's hard to pass up

information is power and power is growth

[Music]

want to see what your competitors aren't

seeing trying to stay on top of Trends

before they're even fully trending well

create a market analysis having that

core understanding of your Market in the

direction its heading is massively

important

a part of your research is listening to

the market and what potential current or

even past customers have to say you want

to be asking these questions who or what

influences their purchase decisions what

do they expect from Brands why did those

customers choose your product over your

competitions and lastly how do your

customers use your product and does it

meet their needs once you have these

answers you'll be better positioned to

provide targeted Solutions and fulfill

your customers needs

foreign

[Music]

as I mentioned in step two you want to

stay ahead of the curve a market

forecast will help you predict Trends

Financial projections and

characteristics of your target market

this will help you predict what to

expect in terms of your Revenue cost and

profit margins then you plan accordingly

and our fifth benefit is quite simple

how else are you measuring your business

performance do you even know how you

stack up against your competitors or

what your customers are seeking stop

winging it and start writing it it's

time to get into the components of a

market analysis

when it comes time to start writing your

market analysis there's seven components

that you'll want to include the first is

your industry's description and Outlook

determining its current state and future

is Paramount you'll want to include

information on what the industry offers

the size of the industry any emerging

Trends the rate of or potential growth

for your industry and the sustainability

of your industry as a whole if you're in

the world of video production how big is

it now and where is it heading those are

important questions to answer look to

government agencies trade associations

or your local Chamber of Commerce if

you're having a hard time Gathering

statistics and reports to back your

answers

[Music]

now that you and any readers have a

better understanding of your industry as

a whole the next section you'll want to

narrow it down to focus solely on the

market that you're operating in by doing

so you'll be able to more clearly

predict how profitable you can be by

tackling specific Solutions and ideas

meant for your Target population it's

like getting the best bang for your buck

take a look at this visme infographic

which would be a perfect market analysis

by visually representing statistics and

information through pie charts bar

charts and other visuals a reader can

easily identify Trends in Market data

that would otherwise be confusing or

wordy and remember this is just one

vismy template available to edit right

now you can change the colors fonts data

information and everything in between to

fit your needs

now descriptions are quite simple it's

determining Trends where it can start to

get a little tricky you'll want to study

and note occurrences in your industry

that have made impacts on its overall

direction what are some things to look

for follow along

changes in consumer preferences change

in Market demographics

technological advancements changing

demand in specific products or Services

influences in pricing by supplies and

any fluctuations that that's led to now

that seems like a lot and you might have

no clue on where to begin but we can

help you there too check out websites

like think with Google or Google Trends

you also have U.S census business data

at your fingertips or the Pew Research

Center any of these places can help you

see the bigger picture of your Market

consumer data and how it relates to the

overall economy keep an eye on your

competitors are they headed in a

direction that you didn't see coming

maybe they have access to information

and analytics that you haven't seen by

watching them closely you can make more

informed decisions and never skip out on

an industry event network with industry

leaders subscribe to newsletters sign up

for webinars watch the news you name it

stay current as best as you can

step four outlines your competition in

what you're up against you'll have a

clearer picture of what you need to do

to keep up with other industry leaders

or better yet how to surpass them this

isn't a one-time thing this will be an

ongoing process that shows you who your

competition is what their products and

pricing looks like how they stand out

and what an overall bird's eye view of

their business and to give you an

example it'll look something like this

now there are different ways that you

can analyze the competitive market the

most simple is simply investigating them

scan their website stalk their social

media channels take a peep at their

marketing materials and newsletters

study their reviews and even buy their

products do everything that you can to

be connected with them and think how

they think another option you have is

using Porter's five forces this breaks

down your analysis into five sections as

you can see in this infographic first up

is the bargaining power of suppliers are

you familiar with how many suppliers are

in your area this will determine how

easy it is for them to raise their

prices the more suppliers the more power

that you have next is examining the

bargaining power of buyers if you have a

lot of competition then the power lies

in the consumer as they have more

options to choose from the competitive

rivalry section will look further into

how intense the competition is how many

competitors exist and what's the quality

of their product or service compared to

yours

the threat of substitute products

examines how easy it is for a consumer

to say yeah I don't need you anymore and

find another seller if there's cheaper

substitutes for largely the same thing

you could be in trouble and lastly

there's the threat of new entrants

what's the likelihood of someone new

coming to your school to take your

boyfriend or girlfriend AKA could a new

business after new business launch and

then lessen your market share it's

something you'll want to consider

if you don't like good old Porter then

another option you have is conducting a

SWOT analysis it's a framework for

evaluating your strengths weaknesses

opportunities and threats in a two by

two grid your strengths and weaknesses

are internal there are things that you

can control perhaps it's your workplace

culture patents that you have technology

others don't have your location I don't

know you tell me opportunities and

threats are more external you have no

control over them these are your market

trends cost of raw materials economic

growth or decline

Etc your last option would be a

strategic group analysis this will group

competitors in the market based on a

number of characteristics including but

not limited to company size product

features distribution channels and price

policy

[Music]

if you're just starting your business or

even just looking to take the next step

a great way to analyze the market and

improve your positioning is by exploring

what your competition is doing right how

are they adapting to those external

factors out of their control how do they

build up their business look into their

resources management operational

strategies marketing strategies people

and everything in between by

understanding their areas of strength

more doors will open for you you'll

recognize what it takes to be

sustainable in the market you'll

identify areas of improvement and most

importantly you'll take continuous steps

of growth for your business

[Music]

the second to last step is making Market

projections where's the market now and

where is it headed this will help answer

how sustainable your business is it's

important to not simply guess in this

step don't be lazy find hard firm

research that forecasts the market write

this down statista and Euro monitor are

two websites that could be very helpful

you can search a company like McDonald's

and analyze market trends competitor

analysis customer descriptions and

purchase behavior and that's what you're

looking for here hone in on Market size

projected sales volume average purchase

price for customers market shares and

Industry net margins but hey look

another vismi template to consider this

one is on industry trends for pizza

while it looks at Global statistics on

how much pizza is eaten to what toppings

are the most popular you can again edit

it to fit your needs it's easy to change

the pizza pictures to whatever fits your

business update the charts with your own

numbers and you could be sharing this to

your employees or customers in no time

[Music]

your last step is to analyze outside

environmental factors you might be

asking why analyze factors that I have

zero control over and my answer to that

is because they can easily disrupt your

business processes studying them now

will help you better prepare and resolve

the issues when they arrive one way to

do this is with the pestle analysis

model the acronym stands for political

economic sociological technological

legal and environmental let's break it

down more to help you get an idea of how

to plan it out political factors include

taxation laws government policies import

restrictions or likewise economic

factors are your interest rates or other

economic policies sociological factors

include things we've discussed like

lifestyle Trends demographic

considerations location and more

technological innovations and Trends

could be influential like the arrival of

5G would be an example legal factors

include any and all laws from employment

to Consumer Protection to safety an

environmental considerations include

your carbon footprint or extreme weather

events and before you go let's visit one

last template this is another SWOT

analysis example that literally spells

it out for you each page consists of

strengths weaknesses and so on for this

marketing business you can easily drag

and drop new elements into the template

rework the colors and customize the

template to match your style ladies and

gentlemen I hope you took plenty of

notes because it's time for you to start

creating there's no shame in going back

and watching again if you need to but we

can assure you if you follow the tips

and processes we outlined in this video

your business will be much better off

you'll be able to stand up with the

leaders in your industry don't let that

goal slip your mind if you made it to

this point in the video please do us a

favor and drop a like on the video and

if you want to continue to learn and

take your business to the next level

subscribe to our Channel it won't be

long before we put out another video

just like this one that's meant to help

people just like you thank you again so

much for watching we'll look forward to

seeing you again soon with vismi I'm

Mike ploger helping you make information

beautiful

foreign