With insights gained from thorough market analysis, brands can also better plan their strategies to gain funding from investors.
By leveraging market analysis, brands can better understand how to promote their products most effectively. Market analysis provides brands with a comprehensive understanding of their audience. Along with providing valuable information regarding customer needs, market analysis can also help brands demonstrate the viability of the business idea and investment – necessary for securing funding from external investors and lenders.
While researching a particular industry for market analysis, ecommerce businesses must consider factors like market size, market value, market demand and market need. As around 42% of new business startups fail because of insufficient demand, brands must conduct market analysis to validate people want what the company offers before pursuing the idea.
Brands should consider factors like audience demography, occupation and their most used technologies while conducting audience research. This kind of audience research should involve both, internal sources like surveying an existing audience and external sources, like referring to external information databases.
Market analysis can also help businesses understand how they fare against their competitors and how the brand can differentiate itself. Similarly, brands can also conduct a SWOT analysis to identify their unique position in the market.
[7 minute read]
