Market Analyses

By Pamela Hubbell

In a Market Analysis, your objective is to describe a market's size, history, recent growth trends, expected future growth, and geography. You should also identify who the customers are and what their needs are; barriers to entry; economies of scale; projected changes in the market; methods of distribution and sales; and methods of advertising and promotion.

If your Market Analysis is part of a Business Plan, you should show how the company's product fits into the market.

Writing the Market Analysis

Generally, in your Market Analysis you should do the following:

Describe the customer need

Describe the general characteristics of the customers

Describe the major competitors and their relative positions

State the target market within the overall industry

Provide a brief history of the industry and the major players

Describe how the industry operates (this includes the sales and advertising methods; any factors that determine the nature of the business such as technology; ease of entry into the market; economies of scale; and factors affecting sales such as price, quality, or brand loyalty)

Describe the industry's past growth and expected future growth

Note any applicable government regulations

Reference

Lasher, William. The Perfect Business Plan Made Simple. New York: Doubleday, 1994. 66-7.