Market Analysis means the analysis of data and information about the market, which is usually collected by marketing research activities. In fact, market analysis is a complementary stage of marketing research and creates added value based on data. The main output in market research activities is Data and Information, but the main output in market analysis activities is Knowledge and Insight, and this is the most important difference between marketing research and market analysis.
The truth is that data analysis in market research is a specialized and complex activity that is influenced by various marketing sciences, statistics, information technology and to some extent sociology and psychology. The combination of these sciences can best be value-added and turn data into value. So, in a nutshell, market analysis is a set of techniques and models that can turn data into a solution, plan, or strategy, or prepare data for decision making. Decision-making based on raw information and data can often not be efficient, and advanced models can improve the role of data in decisions. Therefore, market analysis is mainly related to issues such as the following:
- Analyze data and information collected in the market research process
- Analyze secondary data and information in organizations and create added value based on them
- Assist in decision making based on data analysis
- Advanced analysis of market conditions and presentation of growth strategy (Growth Strategy) or market entry strategy (Go To Market)
- Market Opportunities Analysis
- Provide Marketing Strategy or Marketing Plan based on market data
- Identify solutions to problems of organizations (such as declining sales or low advertising effectiveness)
Thus, in short, market analysis is a step after marketing research and can turn data into efficient concepts and models that are valuable to organizations and can provide the conditions for optimal use of data. In general, the role of data in marketing and sales activities in organizations can be described in the following three steps:
- The first stage: market research: which includes collecting information from market segments, i.e., customers; Competitors, intermediaries, retailers and so on. This information will be the basis for future decisions, and the higher the level of information collected, the lower the risk of future decisions.
- Step 2: Market Analysis: Based on the information gathered from market research, the market can be analyzed and market opportunities identified. Market analysis has many and varied techniques that are done with the aim of creating added value of information and pave the way for decision-making based on data.
- Step 3: Plan or strategy: Based on the solutions and results of market analysis, a general plan or strategy can be developed. For example, market entry strategy as well as growth strategy will be done Based on the opportunities identified in the previous step. Or in another example, selecting a product or branding plan will be done based on a strategy. Therefore, a large amount of marketing activities is based on advanced models of market analysis that provide an overview of the market, customers, competitors and ….