Market study - What is it? characteristics, examples, and more

Market study - What is it? characteristics, examples, and more
Posted on 04-03-2022

Market study

Collect and analyze data and information about a certain market.

What is a market study?

A market study, also called market analysis or market research, is a process that consists of collecting and analyzing data and information about a certain market in order to know its supply and demand, prices, needs, potential customers, competition, etc.

Thus, the market study or analysis offers the necessary knowledge to make future decisions and establish different marketing policies.

In addition, the market study is a pre-investment review carried out by companies to find out what is convenient and viable for their benefit.

Characteristics of the market study

The main characteristics of the market study are the following:

  • Analyze information about the supply, demand, prices, and commercialization of a market.
  • It is a fundamental process to determine the direction of an organization.
  • It is used to determine if a market is profitable or not for a company and to understand the potential clients of a project.
  • It allows to know the competitors and to know how they act within the market.
  • It is necessary to take this into account when establishing the prices of a product.

Steps to carry out a market study

The steps to follow to carry out a market study are the following:

  1. Collect information: as a first step, it is necessary to collect all possible information and then analyze it. This implies going to different sources, such as surveys, media, interviews, the internet, etc.
  2. Analyze customers (demand): analyze the needs of customers, who can be potential customers, what they are looking for and what they lack.
  3. Analyze the competition (offer): here it will be necessary to carry out an investigation and analysis of the competition, what it is doing well and what it is not, and based on this, define opportunities together with strategies for the business.
  4. Define objectives: once the information has been processed, it will be possible to define how the market is made up. Through this, a strategy to be followed must be developed based on the objectives that must be met.
  5. Establish Conclusions – As the end result, a conclusion of the entire analysis, a final report, should be developed. It must establish what has been analyzed, which is generally accompanied by a SWOT analysis to identify the opportunities and threats of the market, together with the situation of the organization.

Market research examples

Although a market study is usually a long and detailed document, let's look at the following examples to understand it better:

  • A restaurant decides to research the market situation before opening a branch in a city. To do this, it conducts surveys, interviews, and analysis of the competition, together with the economic indices of that city, to define whether the market is profitable for your business.
  • A company identifies a weakness in the competition and decides to work on it to gain market within this gap. This action arises from a market study.
  • Reviewing the economic indices of a certain country to determine if it is profitable to invest in an organization is a market study.

 

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