Doing A Market Analysis Tips And Strategies!

Why Should You Do A Market Analysis ? And What Are The Components Of A Thorough Market Analysis ?

Market Analysis

First, What is the definition of a market analysis ?

According to Wikipedia:

A market analysis studies the attractiveness and the dynamics of a special market within a special industry. It is part of the industry analysis and thus in turn of the global environmental analysis.

The market analysis is also known as a documented investigation of a market that is used to inform a firm’s planning activities, particularly around decisions of inventory, purchase, work force expansion/contraction, facility expansion, purchases of capital equipment, promotional activities, and many other aspects of a company. Read more…

So why is it so important to do a market analysis ?

Well, The fact is that those who don’t, 95% of them fail and out of those 5% only 1% make it past 5 years in business. On the other hand, those who have done a thorough market analysis enjoy greater success with less surprises or obstacles to stop progress.

A smart marketer always analyzes their entire business plan and market to strategically target the right market with precision and surgical marketing strategies to a market in demand.

Idea Plan Action

Here are some areas you need to consider when doing a market analysis:

  1. Market Size – The market size is defined through the market volume and the market potential. The market volume exhibits the totality of all realized sales volume of a special market. By placing your search in quotes in the Google search box it will give you specific amount of volume of market size. Read more about market size…
  2. Market Trends – Market trends are the upward or downward movement of a market, during a period of time. The market size is more difficult to estimate if one is starting with something completely new. In this case, you will have to derive the figures from the number of potential customers, or customer segments. Read more about Market Trends… Here is a screenshot of a Google Trends market trends and searches below: Google Trends Market Analysis

Google Trends Related Searches below:

Google Trends Related Searches

4. Market Growth Rate – A simple means of forecasting the market growth rate is to extrapolate historical data into the future. While this method may provide a first-order estimate, it does not predict important turning points. A better method is to study market trends and sales growth in complementary products. Such drivers serve as leading indicators that are more accurate than simply extrapolating historical data. Read more about Market Growth Rate…

5. Market Opportunity – A market opportunity product or a service, based on either one technology or several, fulfills the need(s) of a (preferably increasing)market better than the competition and better than substitution-technologies within the given environmental frame (e.g. society, politics, legislation, etc.).

You find your market opportunity by doing a Google search to see how big your market is and is anyone paying for advertising for your niche or product. This indicates that more than likely it is a profitable niche or product.

Study this search for a week or so and see if you see the same product or website advertising daily to confirm this analysis.

Use Google Keyword Planner to see exactly how bug your market opportunity is and exactly how many people are searching for your product and learn how competitive your niche or product is. See a search screenshot of Google Keyword Planner on sba.gov/market-analysis and notice all of the data within this quick search.

Market Analysis

6. Market Profitability – Is this market profitable and how to find if it is ? Find your competitors websites and go to Ahrefs.com, Alexa.com and SimilarWeb.com and enter your competitors site to analyze your competition. The screenshot above also tells you that there are others paying for advertising which means these search terms are likely to be profitable.

7. Industry Cost Structure – How you structure your cost according to your market can determine how competitive your market will be while maintaining a profitable margin.

8. Distribution Channels – What channels will you be using in your marketing efforts ? What markets are your competitors using and are they profitable ? By checking sites like Alexa.com you can check your competitors marketing channels and it will immediately tell you marketing data if they are in the top 100K sites.

9. Success Factors – The key success factors are those areas that are necessary in order for your business to achieve its marketing objectives.

Here is a video on how to do a market analysis:

 



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Doing Niche Research And Market Research for Your Blog or Website

What is Niche Research And Market Research?

Niche Research and Market Research is finding an area of the market you want to build your blog on and who your customer is and what are they looking for.

Here I will be going over the following:

  • How do you find your Niche or Market ?
  • Is there anyone looking for your niche, market or product?
  • Is there a market for your product ?
  • Who and What is your competition ?
  • Where is your competition ?
  • Here are some tools to find a market for your niche or product and how much competition you will have in your market.

Research

Google’s Free Keyword Tool – What this tool does is search the Internet to find how many people are looking for what you have to offer. This tool also gives you information about your competition and how competitive they are.

I have to emphasize that your market research is the most important part if you starting a business online. So, it is critical that you get this step right. Skipping over this step can be the difference between you enjoying success or not.

Once you open the Google Free Keyword Tool you will notice a box where it says, ” Search For New Keyword and Ad Group Ideas “.  Click on this and it will open a set of boxes where you input the keyword or keyword phrase you are searching for.

Below the search boxes you will find the Targeting Section on the left which you can select, Locations ( What Country ), ” Language “, you want your search done in, On the right you will find Keyword filters. Click on this and a box will open allowing you to select the amount of searches done for your keyword…put in 1,000 and at the bottom of this box you will be given an option to select, High, Medium or Low Competition. Select, ” Low Competition “.

Marketing Strategy and Tactics

This keyword should be related to the product or service you plan on selling. If the product is an ebook about teaching dogs to sit then your keyword phrase should be, “Train A Dog To Sit”.

Make sure you go to the sidebar on your left margin and click the box, “Exact Match”. This will give you the most accurate numbers of people searching for that keyword which is your product. You want to look at the “ Local Searches Area ” for your Market Research which gives you more exact results of search data.

Note: Google recently mentioned that they will do away with the option of selecting ” Exact Match ” which is disappointing because this is what us SEO guys use to find more targeted searches for our websites and clients websites.

Next you want to know how much competition you have. You must know how much competition you have before you build your website or blog and how much work it will take you to compete with other similar niches.

One of the ways to see how much competition you have is using the Google Keyword Tool.

You will notice on the line next to the keyword it will either say Low Competition or High Competition. Obviously you want to find a keyword that has at least 1000 searches a month and Low Competition.

There is also a nifty Toolbar that I use to instantly give me a snapshot of my competition. This Toolbar is called; ( SEO Quake ). This tool bar works great with Google Chrome and Firefox Browsers and now available as Beta for Opera and Safari too. You can read more at SEOQuake.com.

Other resources I find useful to size up my competition are:

  1. – Alexa.com
  2. – Ahrefs.com
  3. – Majesticseo.com

Here are some of the resources and tools I use to find affiliate products:

Amazon.com – Amazon is the largest retailer online with millions of products. They also provide you with the most popular products and the hottest selling products on the market. This gives you an unfair advantage since they have already practically been selling a popular product people are looking for.

Clickbank.com – Clickbank is an Affiliate Network that has over 10,000 digital dowloadable products on just about every niche you can think of.

Shareasale.com – Shareasale is another Affiliate Network that has digital products as well.

BlueSnap.com – BlueSnap is an Affiliate Network of Digital Software’s

Linkshare.com – This an affiliate network offering digital products and also service products like, Travel Packages etc.

CommissionJunction.com or cj.com – Commission Junction has been around for a while and they offer quality digital products as well as service products.

There is something for everyone regardless of what market or niche your in and the best part is that, It’s Free To Join!

Some of these affiliate networks have done most of the research for you so use this to your advantage. Keep in mind that you still need to do your market/niche research for your website or blog. Your Niche can be something you are passionate about like hobbies or something you enjoy doing.

Rocket Launch Research
Reasearch

Hope this helps everyone and helps you skyrocket your business and if you have any questions please leave comment or questions.

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