How to write a business plan? Part II: Studying the market and competitors

Product market analysis is a key process in effective marketing policy. The constant movement of supply and demand forces sellers and manufacturers to keep their finger on the market pulse. What was relevant yesterday may not have a positive effect today, and tomorrow everyone will forget that there was such a product on the market and brought good profits. In addition, market analysis is carried out individually for each region. General trends present in one market may not work in other markets, even within the same country. If the company operates on the international market, the analysis becomes more complicated.

Basic principles of product market analysis

Sales analysis

– a thorough study of the characteristics and trends of the current market to develop an effective marketing strategy within a given time horizon.

At the first stage, we determine the target audience for our product group. In any case, there are several sales channels, each of which requires its own tools and promotion techniques. It is necessary to accurately name each group of consumers, assess the potential of their purchasing power and express in numbers the volume of goods that can be pumped with a competent marketing policy. It’s worth starting by identifying the largest groups. Let's determine how customers feel about our product and how informed they are.

The market is divided into the following segments:

Uninformed consumers (“sleeper group”) who know nothing about our product;
Informed customers, but not motivated to purchase the product (“waiting category”);
Visitors to the market for our competitors’ products (“potential group”);
Real buyers of our product (“working category”).

Based on the data provided by the product sales market, a market entry strategy and measures to stimulate and expand current consumers are built.

https://youtu.be/0cVOCjw8hTo

What does an analysis of the position of goods in sales markets provide?

Analysis of the sales market for goods is interesting both for product manufacturers and for retailers and dealers who distribute goods, each in their own segment. A manufacturing company often outsources sales to its partners or builds an independent sales structure that is designed to distribute the product on the market. The interests of production and sales very often diverge in diametrically opposite directions. For example, for production it is convenient to unify the product, rhythm of release, availability of a warehouse for finished products, etc. Sales, as a rule, pursues completely different goals: personalization of goods for each buyer, targeted production volumes, manufacturing of goods for the client, etc. To combine these interests, you need to carefully calculate the market and choose the assortment that will appeal to the majority, 80-90% of buyers. The remaining 10-20% will be of interest only to companies producing and selling exclusive products.

Methods that allow you to analyze the sales market of goods

Market of intermediaries.

Intermediaries aim to purchase large volumes of goods and sell them in a specific geographic market. Unlike distributors, they are independent of the manufacturer, are not obliged to support its sales or product strategy, and act purely in their personal financial interests. Intermediaries can be divided into two large groups. The first purchases goods with 100% payment and then sells them at its own peril and risk. Market analysis lies entirely on the shoulders of the intermediary.

The second carries out agency sales. Agents carry out market analysis based on the interests of the manufacturing enterprise and engage in sales at the expense of the enterprise, receiving an agency fee for this. In fact, they are freelance employees of the sales department who do not have a salary.

Market analysis involves studying each of these groups separately. It is necessary to track the volumes of each sales channel in terms of product line and product policy, monitor profitability and financial flows, etc.

Analysis of direct sales.

Direct sales are carried out with the help of a sales department and staff or by creating a separate sales company. In addition, you can create a network of your own stores. The analysis of direct sales must be divided into at least two components - wholesale and retail buyers. There may also be specific groups, which, as a rule, relate to wholesale clients. For example, it is advisable to separate corporate buyers making purchases from different divisions of the company or even from different companies united by the same pricing and product policies. You can also add VIP clients who help sell large volumes of products on the market.

Distribution analysis.

The analysis of regional sales divisions is focused on the competent distribution of the product line. Each region specializes in the sale of a specific product that corresponds to the solvency of end consumers and preferences. Distributors, like intermediaries, have independence in product selection and analysis of their market, but they are required to support the marketing and product strategy of the enterprise in exchange for a higher level of loyalty.

Read the article: Marketing market analysis: types, stages, methods

How to determine acceptable selling price

A product or service will be able to enter the market only if its production and sales are at least break-even, in which case the business pays off while continuing to occupy a fixed niche. Ideally, the sales price should not only cover costs, but also generate a profit sufficient to meet the expectations of investors and increase sales volumes, while satisfying the expectations of the majority of consumers and allowing them to compete with other market participants. The price will never be able to satisfy all three requirements, so when pricing you have to give preference to one of the directions:

Expensive, profit-oriented.
Consumer, demand-oriented.
Competitive, with the goal of ousting other market participants.

There are also synthetic techniques that combine features of two different directions with less effect in each of them.

Price based on costs

The most obvious solution to the issue of setting a price is to add to the costs some allowance that satisfies the entrepreneur. It is on this principle that all costly pricing methods are based, focused mainly on the intra-company environment and poorly adapted to fluctuations in market conditions. You can research the required price level [P] using one of the following methods:

1. Calculation based on total costs, which consists of adding to the total costs [TC] a share that is the rate of profit [r] and ensures profit based on total costs.

P = TC + TC * r = (1+ r)* TC

The obvious disadvantage is that competitors who are able to reduce the share of fixed costs due to economies of scale gain an advantage with such pricing and can dump.

2. Calculation based on known variable costs [VC], ignores the full amount of cost items for renting premises and paying administrative personnel, replacing them with the amount of coverage

added to the cost of each unit of product.

P=VC+p

3. Analysis of the price necessary to obtain the target profit involves adding to the total costs [TC] the planned or required amount of profit [R] and relating them to the volume of output.

P = TC + R

4. Calculation of the price [P] by the return on investment method should be added to the marketing section for the initial stage, when the priority is return on investment, in order to clearly demonstrate this opportunity to potential investors. The cost of the product in this case will be determined as the ratio of total costs [TC], increased by the amount of the loan payment [cr], to the volume of product output [Q].

P = TC + cr / Q

Focusing on demand

When the scale of production is large and it is not advisable to launch a conveyor for a small volume of products, methods of calculating prices aimed at the consumer are used, who can compensate for the low cost of the product with a significant increase in sales. Taking into account the opinions of customers and their significant characteristics makes the analysis using consumer direction methods in the marketing section more objective and market-oriented.

The research method in the form of a survey involves surveying various categories of consumers on a number of issues, including:

about the optimal price and the corresponding demand;
the maximum cost of the product at which they are willing to buy it and in what quantity;
the reaction of a decrease in consumption when the price increases from optimal to marginal.

The auction method makes sense when there are plans to sell unique products or have a clearance sale, as auctioning can be done in several ways:

by bidding for an increase, which is important for status, rare and single products;
weiling trading, when a maximum price is initially set, which gradually decreases and the first one to apply becomes the buyer;
sealed envelopes with the purchase price, which do not allow buyers to see each other’s bids, and the owner of the goods becomes the one who offered a larger amount.

Test sales provide the most reliable analysis of potential sales volume at a certain price and its changes, but are possible only if there is a pilot batch of products and a point for its sale.

The parametric method involves research by comparing the proposed product and its closest analogues based on a score of significant properties that determine demand and purchase price. By dividing the number of points of a competitor's product by its price, one can obtain a specific value, multiplied by one's own points to obtain an acceptable selling price at which the consumer, with a given combination of properties, will provide comparable demand.

Looking at the competitors

When, when collecting information for a business plan, the presence of a large manufacturer or supplier that controls the local market is revealed, you should be aware that it will not be possible to set a price above the market average while maintaining sales. For such cases, a competitive pricing direction is intended, consisting of:

a method of monitoring the pricing policy of a competitor - which consists in establishing and maintaining a similar price for the product;
competition method - relevant for the tender method of doing business, implying the anonymous participation of several products with comparable characteristics, from which the buyer chooses, ensuring satisfaction of needs at the lowest cost.

As a result of choosing a pricing policy and determining the price level, the marketing section should include:

The price of a product justified by the full costs of its production and ensuring a return on investment (return on investment method).
Price adjustment confirmed by market research through analysis of expected consumption (survey or test sales method).
Final determination of price by comparison with competitive offers.

Components of product market analysis

Basic features of each market.
Market Capacity Research.
Assessment of direct and indirect competitors.
Analysis of goods buyers.

General characteristics of markets

describes the basic indicators of the market, its geographical and cultural features, sales mechanisms, development trends, including the regulatory aspect that imposes restrictions on the sale of goods.

Market Potential Research

primarily evaluates the capacity and structure of the market. Particular attention is paid to target audiences and their ability to pay. Market capacity can be assessed as the amount of goods consumed per thousand people. However, this indicator must be adjusted taking into account the percentage of the population’s solvency, since in some cases the high market capacity is canceled out by the low level of income.

Competitor analysis

can be divided into two components: direct and indirect competitors. Direct competitors are those who can directly take away our sales. They occupy the same market as us, trade the same goods. Indirect competitors sell similar products. They may differ in price, that is, their product is in a different (higher or lower) price niche. They can sell a substitute product, that is, their product is not a complete analogue of ours, but in case of problems (out of stock, sharp increase in prices), our buyer can switch to a substitute product.

Consumer Analysis

involves identifying needs that can be fulfilled by the buyer using our product. Naturally, both wholesale buyers and retail (end consumers) will have different needs. Therefore, it is necessary to consider each group separately and subsequently build a differentiated sales promotion system. During the analysis, as a rule, a larger number of groups are identified, each of which requires a specific market if it is justified by financial efficiency.

Analysis of the sales market for goods allows us to find existing potential buyers who are ready, under certain conditions, to switch to consuming our products. In addition, when analyzing the market, new unexplored opportunities constantly emerge to attract new market segments that previously did not know about the existence of our product or were selling substitute products. So-called “new markets” are very interesting from a development strategy point of view, as they are driven by low levels of competition and potentially higher profitability. If a company is the first to develop a new market, it has a competitive time advantage over its followers.

A deep and comprehensive analysis of sales markets allows you to correctly formulate a marketing strategy. At this stage, errors or inaccuracies in the analysis are very expensive, since they are the basis of an incorrect business plan and, accordingly, an incorrect investment project.

Analysis of the structure of the sales market forces the company to take a more careful and balanced approach to each target audience. The more detailed each segment is described and a sales promotion plan for each group is drawn up, the greater the chances of a positive commercial result. In addition, each segment may have its own specific competitors who will fight for their customers. To defeat them, you need to organize sales in such a way as to have an advantage over them.

Analysis of market conditions is a comparison of the capacity of each market segment and the number of solvent buyers in each segment. Analysis of the sales market cannot be carried out in general. This can only be done segment by segment. Determine the needs and features of methods of purchasing goods. Then, based on segmentation, implement a sales strategy in accordance with the prepared recommendations.

Once the market is divided into segments of interest to us, we can begin to position our company and our product in the market. With the help of advertising, marketing and sales activities, it is necessary to form an image of our product, as well as our company, in the minds of potential buyers. Each segment has its own leader, followed by the average, and at the end of this line are the losers. When analyzing the sales market, we must decide whether we should rise to the level of a market leader or choose the tactic of following the leader. If our product does not meet a given market in price or quality, we should either abandon that segment or reconsider the characteristics. When analyzing a product and comparing it with competitors, it is necessary to identify strengths and weaknesses and make a decision about introducing the product to the market.

Business idea No. 710. How to open a farmer's market? Classic and virtual

January 31, 2012 Oleg Markaryan Home page » Business ideas

Natural products are organic, grown without the use of any chemical fertilizers by local (or non-local) farmers, gardeners and gardeners. Recently, this category of goods has been valued the most throughout the world. Therefore, you should not be surprised that cucumbers, meat or mushrooms grown at home are always valued more than their greenhouse counterparts (which, it must be said, have a much more presentable appearance, but are much inferior in taste). And if in rural areas the difference in prices may not be so significant, then in large cities all this is very pronounced. Products from private “landowners” are worth their weight in gold here.

How to make a business out of popularizing agriculture?

Due to the global trend of people striving to achieve a healthy lifestyle, agriculture is becoming an increasingly popular type of business. We have already repeatedly discussed various livestock and crop business ideas on the pages of our website. Not long ago we talked about growing physalis at home. We also had traditional agricultural ideas. For example, breeding crayfish at home. But also, we have repeatedly talked about rather exotic types of business for our latitudes. Such as, for example, growing avocados. But the most important thing is the number of views of such publications.

This section is one of the most popular. People are interested in growing and breeding. And every day the number of interested people increases. How can you take advantage of this trend and build your own highly profitable business without participating in the production process? We have the answer. We need to open an agricultural market. That's how it would seem. It's simple. But in reality, organizing such a business is a very, very big deal. Before we jump right into discussing the basic steps of organizing a farmers market, let's learn what it is and how it works.

An agricultural (or farmers') market is a collection of stalls or stalls, similar to a regular market. The difference lies in the range of goods, which consists mainly of those grown by private farmers, gardeners and gardeners. There are similar organizations in every city. Most likely, you yourself have visited farmers' markets many times to buy fresh fruits, vegetables, fish, meat or mushrooms. If we explain the work scheme in simple words, it is as follows. Private individuals grow vegetables, fruits, animals, fish, and then sell their organic products on the market. Here they rent a place and engage in trade in order to make a profit from the sale of their goods. The market owner receives income from renting out retail space. That's the whole structure.

Main stages of organizing a farmers market

The very first thing to start with is to conduct a sociological survey among your potential clients - owners of farms, vegetable gardens, and household plots. Would they be willing to rent space in your market to sell their wares? What rental prices do they consider acceptable? Are they interested in the ever-increasing flow of buyers (after all, you will be advertising your market)? Etc. After this, you can proceed to the first stage of creation.

[direct]

You need land where your market will be organized. The more territory you can get, the better. After all, over time, the number of people wishing to sell their natural products may increase significantly. Especially when people notice how their neighbors made money on cucumbers or watermelons to buy a car or an apartment. We think there is no need to explain that it is most profitable to purchase a plot of land as your own. After all, land is constantly rising in price. And along with it, the rental price rises. It's better to spend once than to pay constantly. Although, of course, everything depends on the capabilities and goals of each individual entrepreneur.

Particular attention should be paid to choosing the location of the site that you plan to use for the construction of shopping arcades or ordinary tents. There should always be convenient access to the market. Both for the traders themselves, who will bring their products here, and for clients. Having a large parking lot is welcome. By the way, parking can be paid and used as an additional source of income. In large, busy cities, it is best to build agricultural markets at the exits from the city.

The next stage is the arrangement of the site, giving it the appearance of a real market. Of course, you can just put up tent frames and call it a day. Or you can build shopping arcades, pave the passages between them, and cover it all with a transparent profile (so that light penetrates and bad weather is not a problem). Every farmer will want to rent a place in such a market. After all, everyone wants to work in good conditions. And customers will be pleased to walk through clean and dry shopping arcades in any weather. Don’t forget about creating entrances and parking, which we already mentioned above.

Once your farmers market is ready, you need to move on to the hardest part - attracting traders who will become your money river. The more farmers you attract, the more you can get from renting retail space. Payment can be arranged in two ways. Or take a fixed payment monthly, regardless of the number of days the trader works. Or daily payment for a place. What to choose is up to you.

To attract the maximum number of people willing to settle in your market, you must constantly conduct advertising campaigns and attract the maximum number of citizens to your site. Sellers' profits will increase. This means they will be more motivated to rent a place from you for a long time. Put up a bright banner somewhere in a crowded area of the city, run a video on a local TV channel, advertise in the local newspaper. Use the Internet for promotion. By the way, about the Internet...

A new word in agriculture - a farmer's market on the Internet

Not so long ago (in 2010), a new unique project appeared on the Internet - “Ecofood”. This startup is a convenient means of communication between farmers and buyers who want to purchase natural products. Today, this service operates within Moscow and delivers to its customers the following categories of goods: dairy products, meat, poultry, vegetables, fruits, oils, honey, mushrooms and teas. In addition, Ecofood delivers real homemade baked goods and sweets, which are also supplied by private farms.

The scheme of the project is simple and ingenious. Agreements have been concluded with farmers for the supply of natural products. Customers place an order through the website interface (ecofoodmsk.ru). Indicate what, where and when should be delivered. After receiving the order, Ecofood contacts the farmers and places the order. Once the goods are prepared, a refrigerated van goes to the farm, picks up the goods and delivers them to the client. Exactly at the agreed time. Payment is made to the courier upon receipt of the order. That's all, actually.

Another project, even older than Ecofood, is LavkaLavka, organized by Vasily Palshin, Boris Akimov and Alexander Mikhailov a year earlier - in 2009. “LavkaLavka” (project website lavkalavka.ru), as the founders of their startup say, is a social network of farmers and consumers. The main purpose of the project is to make people's lives better by delivering real village food to everyone. Initially, the project worked within Moscow, but later began to provide services outside the Moscow Ring Road. True, for this you need to place an order for at least 5,000 rubles. The cost of delivery will be 400 rubles within the Moscow Ring Road, and 100 rubles for every additional 5 kilometers. In general, no matter what the founders say, for now only residents of Moscow can normally use its services. The scheme of work of this project is approximately the same as in the case of the Ecofood project.

Let's summarize

Farmers' markets are picking up steam. Moreover, both in its classical meaning and in the form of virtual platforms. The latter are of particular interest, since they are not represented in most large cities of our country. An unplowed field opens up for organizing a new promising business.

Stages of product market analysis

The market review consists of eight typical stages. They may vary depending on the type of market or the characteristics of the product, but to one degree or another, the marketer must take into account all these characteristics, regardless of what kind of market it is - industrial, consumer or intermediary:

Research concept
includes developing the goals of the upcoming analysis, developing tasks for each product and assessment indicators for the market under study.
At the second stage, the current position of the enterprise in the analyzed market is assessed.
The market share is estimated. The structure of the market by segments and types of buyers is considered. An analysis of product sales is carried out for the entire period of time the enterprise has existed on the market. Successful and failed periods of work are examined in relation to the activity of competitors at that time. An audit of the financial and economic activities of the enterprise is carried out and an audit of production facilities, warehouse space and other material assets is carried out.
Analysis of the range of manufactured goods.
Is there a division of goods by assortment for each group of buyers? Are there products that are market leaders and have serious advantages over competitors? Are there promising products that will take the place of those leaving?
Assessing the competitiveness of an enterprise.
Strengths and weaknesses are identified that help and hinder us in the competition. A list of competitors is compiled, which are divided into groups according to two indicators: the current market share and the trend of its change in the short and long term. Competition is an ongoing war, so analysis of competitors' products and their behavior in the market is always the object of close attention of a successful company.
Analysis of potential consumers of our product.
Two sources are used. The first is various statistical and marketing organizations that are engaged in constant monitoring of the market and its individual segments. The second source is the direct collection of information from end consumers (surveys, questionnaires, focus groups, etc.).
Consideration of purchasing power.
The capacity of each market segment is determined by the number of available potential consumers, as well as their solvency. Needs that are not supported by financial capabilities are not interesting for the commercial purposes of the organization.
Analysis of external environmental factors of the market under study.
Economic, political, legislative, cultural, geographical, ideological and other factors are very important when analyzing the market for goods. The researcher must take into account their influence and trends.
Review of methods of product promotion and sales promotion methods.
The final stage of the study, which presents conclusions and recommendations for promoting the product to the market according to segmentation.

Product market segmentation

Product market segmentation is necessary for the following reasons:

Accurate identification of needs for each consumer group.
Aligning consumer preferences with the company’s product.
Increasing competitiveness and developing new markets.
Development of a marketing strategy that meets the market structure.

There is no single way to segment the market. There are only recommendations and principles for dividing consumers into target audiences. The marketer's task is to choose the best structure.

Types of segmentation:

Financial (by solvency);
Regional (by location);
Demographic (based on population structure);
Social (by class division);
Psychological (features of purchasing behavior);
Consumer (according to consumption structure).

Market analysis of goods involves dividing the market into segments and studying consumer demand in each segment individually. Our policy is aimed at a comprehensive study of needs and building their hierarchy:

Consumer demand at the country level;
Internal needs;
Demand in a specific industrial area;
The need for the goods of this company;
The need for specific goods.

The entire product that can potentially be purchased per unit of time is called quantity demanded. This indicator will be key when assessing market segments.

To occupy a certain market share, you need to position your company correctly. This allows you to sell the required quantity of goods. The company must have clearly defined competitive advantages that will prevent customers from choosing another similar product. We must understand that any competitive advantage cannot last forever. Sooner or later, competitors will be able to copy it and, thus, attract some buyers. Sales analysis allows us to track the dynamics of changes in demand for our company's products. In order to win the competition, we must either constantly introduce innovations that our opponents do not have, or maintain existing ones at a height unattainable for them.

Read the article: Analysis of the competitive environment: main stages and methods

Product portfolio analysis was developed quite a long time ago, back in the 50s of the last century, but has not lost its relevance to this day. Let's look at what groups goods are usually divided into.

First type

- "cash cows". They are characterized by high stable demand, high profitability and low susceptibility to switching to competitors. The presence of this group allows the company to make a profit and invest in new projects.

Second type

- “middle peasants”. The name of this group speaks for itself. Low growth rates, average profitability and low share in the commodity portfolio. Such a product is sold until analysis shows that it is unprofitable.

Third type

- "stars". A group of products that has high potential in accordance with the analysis of the product market, but requires investment in advertising and promotion.

Fourth type

- “dead people”. A group of products that occupies a small market share is low-profit or unprofitable. This product, as a rule, exists in the company's portfolio for reasons not related to financial and economic activities. This could be, for example, a production requirement, outdated contractual obligations, or something else.

The development of a product strategy is based on two pillars: segmented consumer demand and product portfolio. The manager’s task comes down to balancing the enterprise’s products and effective consumer demand and benefiting from this. The above groups of goods were not selected by chance. Any product along the path of its life cycle goes through all stages with rare exceptions. When a new product appears on the market, the company needs certain advertising efforts to introduce it widely to the market and gain a high market share. If this stage is successful, the product turns into a “cash cow”, which in turn is the financial locomotive of the company. Then a period of prosperity passes, and finally, the market begins to gradually abandon this product, transferring it to the category of “middle peasants”. The “middle peasant” remains on the market until an analysis of the product’s market shows that it is unprofitable or has a very low market share that is uninteresting for the enterprise. This circulation of goods occurs constantly; the differences lie only in the time intervals of each stage of the life cycle. A balanced product portfolio requires the presence of at least two or three products at each stage of the life cycle. Otherwise, the moment will come when the company will not have a single “cash cow” left that can keep it afloat.

Demand analysis

We have divided the market into groups of buyers, or rather female buyers, that interest us. Now we choose a target segment to which we will devote all our efforts to sell goods. Our target clients are women from 25 to 40 years old with an average level of income, living in the city of N. Women who lead a fairly active lifestyle, take care of their appearance and fashion, and often buy clothes. The key characteristic of our customers is that they make purchases based on quality, service and status.

Let's answer some more important questions:

1	How variable is the demand for these goods (services)?
Demand depends on the time of year, holidays, and weather. For example, if the summer is cold, then summer sundresses and dresses will not be in demand.
2	What stimulates demand for these goods (services)?
The main demand is for festive dresses for the New Year and weddings. The demand for casual dresses increases in summer.

Read about how to do a competitor analysis in the next article “Creating a business plan. Part 4. Competitor analysis."

Methods for analyzing the sales market of goods

Let's consider the following analysis techniques:

Theoretical

The analysis is carried out on the basis of statistical or market research. The marketer collects all the information available on this issue (statistical reports, results of previous studies, etc.), summarizes it, classifies it and makes recommendations regarding the questions posed in the title of the product market analysis. Such an analysis is secondary because it does not take into account current market trends and possible environmental changes.

Field

Surveys of target audiences are conducted in order to clarify the position of the company and the goods it produces among consumers. Naturally, it is impossible to conduct a total survey of all consumers, so a representative sample is usually used, which is based on the social and demographic picture of buyers.

Focus group analysis

A focus group is a representative sample from the target segment of consumers of our product. The expert conducts a multi-hour focus group survey on the points established for the research purposes and forms a picture of consumer behavior, which serves as the basis for developing a marketing plan.

How to properly research the market when drawing up a business plan?

Market analysis can be primary and secondary. Primary analysis studies the consumer directly, while secondary analysis examines information about the consumer that others have already collected. Primary analysis involves telephone interviews or online surveys with randomly selected target group members. You can also review your company's sales records and include them in your primary analysis. Secondary analysis may rely on reports found on other organizations' websites or industry blogs. For a business plan, you can use one of these types of analyzes or combine them.

The main questions you should try to answer through your research are:

who are your clients?

Describe them, taking into account age, profession, income, lifestyle, education and other indicators.

What are they buying now?

Describe their purchasing habits related to your product or service. How much do they buy? Who is their favorite supplier? What product features are most in demand? What is the standard price for the product?

why do they buy?

This is a tricky question that companies use to try to get into the consumer's head. The answers will depend on the product and what it is used for. Thus, when buying kitchen utensils, people may pay attention to the fact that it has a non-stick surface, or that a set offers a large number of pans and pots for a certain amount, or that it simply has a nice color.

What will make them buy your product?

Some of these questions may seem strange, but by answering them, you will be surprised at how much detailed information can be gleaned about markets, sales, and customer motivations. By researching information resources to find answers, you will make your plan more compelling and increase your chances of success.

Some specialized business plan software includes detailed market research and online analysis. You can also use this opportunity. You can also use a company that offers a full range of services, from industry research to player-specific credit reports. Market research is expensive. And in order for it to look solid, it requires expertise, human resources, and technology. Large companies regularly spend tens of thousands of dollars studying aspects that they sometimes don't even need. Smaller companies can't afford to do this kind of work too often.

For companies of any size, the best market research is the work they do themselves. In such an analysis, you can use the format of telephone interviews with consumers and process data about competitors collected through social media. You may also find the likes and likes information available on Facebook useful. Use Google Analytics to filter data relevant to your online visitors.

You must do your due diligence in everything related to your industry. By observing similar businesses and analyzing their data, try to find matches. For comparison, consider:

companies of similar size;
companies located in the same region as you (if we are talking about Internet business, then these can also be global companies);
companies with the same ownership structure;
new companies. Of course, you can learn something useful from old players, but they can only be successful today because they have been in the market for 25 years and have managed to acquire a certain reputation.

You will want to use the information you gather to determine not only how many successful deals you can make, but also how you will fit into and adapt to the existing market.

What points should be considered in order to spend your budget on market analysis wisely?

Determine what you need to know about the market. The more accurate the analysis, the more useful it will be.
Set your priorities. You can't analyze everything, so focus on the information that will help you achieve ROI faster.
Look for less expensive alternatives for market research.
Estimate the cost of conducting the analysis yourself. The Internet can help you in many ways. If you are considering hiring a consultant, remember that in any case, it is about your dream, your goal and your business. And don't pay for what you don't need.

Based on materials from Entrepreneur.com