When thinking about doing your market analysis there are many tools to consider to get the most data or information possible to make an intelligent and informed decision. Gathering valuable data is probably the best investment for your business and it is one reason a lot of new businesses fail.
There is an old saying, ” Fail to Prepare and Prepare to Fail ” or ” Failure to Plan is a Plan for Failure ” either way its not a positive outcome.
Here I want to share some of my experience and what we have learned over the years regarding how market analysis plays the most important role in your business. Would also like to share some tips on getting started with your market analysis even if you already have an existing business plus some tools you could use and screenshots with some examples.
These are probably some questions that come to mind when thinking about a market analysis:
- But where do you start ?
- When should you start ?
- What should you be looking for ?
- How do I know; who is my market ?
- How large of a market do I have ?
- Is there a lot of competition ?
- And, What is a market analysis anyway ?
- How to do a market analysis ?
First, What is a Market Analysis ? A market analysis studies the attractiveness and the dynamics of a special market within a special industry. In other words, you are gathering data from a particular niche/market/industry through reports that gives you details about how your business is doing, used for marketing your business or starting a business from scratch.
Obviously by this last statement it is clear that a market analysis has many different purposes leading up to the same goal, which is having a great performing business that is profitable and accomplishes its mission.
Where do you start your market analysis ?
Before you start your market analysis you should ask several questions before you spend hours doing your analysis. For example:
- Who is your market ? Is it 25 to 65+ years old, Are they college educated with 2 years of college minimum, Do you have a product or service you want to provide ?
- Is your market looking for what you have to offer ? How would you know ?
- What tools or softwares can I use to help me with my market analysis ?
- Should I outsource this ?
While I am sure that there are many other questions not mentioned here I must say that there are things you should do yourself and some that you should outsource. There are market analyst and services available to do this for you if you decide to outsource. If your just starting a new business and are doing your initial market research it is important to get this part right since your business success is mostly dependent on its thoroughness and completeness.
If you decide to outsource here are 10 outsourcing websites that could help you with your market analysis:
It comes down to how comfortable do you feel getting in the trenches to do a market analysis. Doing a market analysis takes patience, attention to details and an analytical mindset, after all it should be exciting to find valuable information that will help you make the right decisions when it comes to marketing, building your brand, writing content, or social media.
Once you have defined your market and know whom you are after its time to get busy. First, you might want to open your notes on your computer to take notes or a notebook and a pen if your an old timer like me.
Your analytics should be reviewed at-least every two to three days when testing your marketing, like when you do split testing or two ads or more. This way you can see what is working and what is not working make changes you think necessary.
If the ad for example; is not getting any clicks at all then I would start with the Headline then the Text body but test each one separately to identify which area is the reason for not getting clicks/engagement or you might not be targeting the right market ( take a look at your keywords/phrases used to target your market, your demographics, and industry ), we will discuss this in further detail below.
Now that we got all the shenanigans out of the way it’s time to get started with your market analysis.
- First, you should build a Persona of who it is you are targeting. You could do this by using a site like MakeMyPersona.com. Be honest with your answers and put yourself in your persona’s shoes when going through the questions.
- Second, once you have your persona you should have an idea if who you are targeting. Since Google controls over 65% of market search online and it is why most start their market research with Google Keyword Planner.
Here above is a screenshot of what the Keyword Planner looks like when you log in and open your page.Starting from the top left of the image you will notice the first box of three you could use to identify your product, landing page and product category.
The first box is where you can input your product, keyword or phrase directly related to your product. The second box you can input a website or landing page. This is perfect for reverse engineering your competition. You can input your competitions website in this box and it will spew out all of the search terms they are using and how they are targeting their market. In the third box you can write your product category to give you even more valuable data.
The next box below these three is used for Targeting your Country or Region desired, what language would you prefer, which search engine and any negative keywords you would like to input here. Below this box is Date Range, here you could select how long would you like data for ( Usually 12 months is a good barometer but you can select longer ).
Then the next box on the right is where you can use keyword filters like what is the amount of search volume per month, how much competition, suggested bid, and impression share. Next is the keyword options where you can target your market more directly by turning on and off the following choices:
- Only show ideas closely related to my search terms
- Show keywords in my account
- Show keywords in my plan
- Show adult ideas
Last but not least is Keywords to include: Here you can select, ” Only include keywords containing the following terms: “. See only the terms that include the terms you enter in the box. Now that you have input all your details you will click, Get Ideas to open up a new page showing you some data to look at and find the keywords that have good search volume for content marketing purposes and keywords with low competition for paid marketing while you grow your business and gradually work your way up to the higher competition keywords.
This is one strategy that you could use for content marketing. Another benefit of using low competition keywords is that you could also rank your website for these terms if you implement a solid seo and/or marketing strategy.
Below is an image of the second page you will come to after filling in the product, website and/or category. As you will see below is the search information for your product with a total combined search terms 1 million to 10 million searches monthly. Then below your search term you will see other directly related search terms with search volume, competition and suggested bid for paid marketing on Google Adwords.
Here is another recently discovered place called ” Ubersuggest ” you should include in your market analysis built by Neil Patel an online marketing authority.
This helps you validate your search done with other resources. As you can see I input the search term, ” market analysis ” and as you can see if you compare to Google Keyword Planner there is a difference in search volume. Google keywords says that there is ” 10,000 to 100,000 ” searches a month for this term and Ubersuggest says, 6,000 searches a month which I believe is a more specific size and not as vague like keyword planner.
However it is all good news because it tells you that there is an audience and a market which you could tap into.
With Moz you get up to 20 free queries per month and there is a full paid version which obviously gives you more valuable information and data plus a host of other powerful marketing tools. As you can see in image below I made a search for market analysis to give you a demonstration on some of the data it provides you with.
Now lets look at another market analysis tool you should have in your arsenal as well, Google Trends. When you initially open the page you will notice it will give you the latest trends and top trending stories occurring around ” Worldwide ” this is great for current events and see what’s going on around the world. Now, see below to see how to use it to do your market analysis.
Once you enter your search term/product where it says ” Explore ” you will be forwarded to the following page below showing you Search Results that help you understand the current trend and demand for your product. When inputing your search term make sure that you select your country of interest and the time range of how far back you would like to go with your search and sub regions and their search volume.
Here is a great and very inexpensive tool to do your market analysis, your market research, keyword research, monitor your website or blogs health, reverse engineer your competition, your seo research and provide you with the necessary data to improve or start your business.
As you can see on the above, Serpstat being a paid service gives you more detailed data all in one place making it a powerful Tool to have in your marketing research and data of market analysis and more…
Here is some of the data that Serpstat gives you:
- Overview – Search Volume, Competition, CPC ( Cost Per Click ), and Keyword difficulty.
- Organic Keywords – Keywords used for ranking your website organically on Google.
- Ads Keywords – Used for paid marketing.
- Keyword Trends – This gives you the answer to: How is the keyword is trending online.
- Keyword Difficulty – This gives you the number of main pages that are in the top 10.
- Competitors in organic search – If you are doing SEO this will tell you about your competitors.
- Competitors Graph – This graph shows you similarities in keywords to your competitors
- Competitors in Ads – This is for paid marketing, it finds competitors by looking at similar keywords you and your competitors bid in Google Adwords.
- Number of Keywords for Domains Graph
- Ad Examples – Here it shows you example ads for your product/search term/keyword or phrases.
Here are more reasons why Serpstat provides you with more tools to help you do a thorough and in-depth market analysis which helps you work smarter, faster and hopefully more profitable.
If you do a search on Google for any specific term or product to see if there are any Advertisings on the first page. What this more than likely tells you is that there is a market for a product and obviously that these Ad owners are making a profit or else they would not be paying for advertising.
Tip: When doing a search on Google pay attention to the Ads and related keywords or phrases at the end of the page called ” LSI Keywords ” ( Latent Semantic Indexing ), see image below.
Quick Tip: If you wisely leverage the information that you analyze it will help you increase your business and website or blog performance, it will help understand where your market is, and most importantly help your business be more profitable, while at the same time generating more traffic and more leads into your business.
And to answer the question, When should you start a market analysis ? A Market Analysis should be the first thing you do before even starting a business but it doesn’t mean you can’t fix things if you already started a business but it will take a little more effort.