Posted in Marketing and Strategy Terms, Total Reads: 599
Definition: Marketing Analytics
The aim of marketing analysis is to determine the market attractiveness for both the present and the future and know how to cash upon the opportunities by using the strengths and reduce the threats. The investment decisions of any company depends largely on the industry attractiveness. The decisions might affect the workforce, inventory stocks, capital, marketing activities, etc.
There are eight dimensions of market analysis as defined by David A. Aaker. These are: -
i. Market Size: - Market size is determined by estimated by the number of potential buyers and sellers in a particular market. Present and potential sales figures are also evaluated. Company evaluates a market size before making any investment. There are various sources to get the data. For example: - government reports, customer surveys, financial reports, etc.
ii. Market Trends: - market trend is the tendency of the market to rise or fall during a particular period of time. Competitor analysis is also important along with customer analysis.
iii. Market Growth Rate: - the increase in sales observed with respect to historic data in a particular period of time and a particular customer segment.
iv. Market opportunity: - this shows how much competitive advantage you have as against your competitors.
v. Market Profitability: -Porters five forces analysis is done to identify market profitability. These include analysing buyer power, supplier power, barriers to entry, threat of substitutes and rivalry within the industry.
vi. Industry Cost Structure: - Porters value chain analysis is done here to identify where to raise and where to isolate the costs.
vii. Distribution Channels: - in this existing and emerging distribution channels are analysed. Also, the power structure of each channel is formulated.
viii. Success Factors: - success factors are those which help a firm to gain its marketing objectives. These might vary over the evolving product life cycle.