Consumer markets and consumer buyer behavior. Market analysis Contents

New competitors and market entry barriers: If a market is particularly attractive, it is sure to attract new competitors. How high are the market entry barriers for potential competition? For example, high investment costs for a product or service can be a barrier to market entry. Access to a market is also made more difficult if high marketing costs are necessary to achieve a certain level of awareness, or if resources are difficult to access due to exclusive suppliers, or if a shop is in an awkward location.

Competitors in the market: How high is the competition? Who dominates the market? Which competitors are ahead and why?

In the competitive analysis you should get to know not only your customers, but also your competitors and possible competitive advantages:

• 
  How quickly should you enter the market?
  
• 
  What are the dangers of entering the market?
  
• 
  Who offers a similar range of products and how many competitors are there?
  
• 
  What do your competitors do well and what can you do better?
  
• 
  How similar is your target market to that of your competitor?
  

Analysis of the customer industry
The analysis of the customer industry identifies the industries that achieve the highest sales or turnover. In doing so, you should again refer to your defined market. You can then analyze the structure and attractiveness of the industries with regard to the various sales aspects. As a result of your analysis you can identify the target groups and their various industries and you can determine customer requirements and customer behavior. Based on the results, you can, for example, develop suitable marketing strategies for your business.
The following questions should be answered:

• 
  How high are the revenues generated in the particular industry?
  
• 
  Which company is the market leader?
  
• 
  What are the current trends in the industry?
  
• 
  Which innovations have been able to advance the industry?
  

Potential analysis of the target market: how will the market develop in the future?
A market analysis does not only reveal the past and current state of a market, but also the trend of its future development. For this purpose, the potential analysis highlights potential employees, market entry barriers, success factors, as well as current developments and trends. A forecast of the market development is particularly important for your sales planning and for possible investors.
Conclusion
With the help of a market analysis, businesses can gain valuable information about a certain market. If you are setting up a business, want to investigate your current market, or simply look at new markets, a market analysis helps you to identeify and assess the opportunities and risks of a market. On the basis of a market analysis, you can develop concrete marketing strategies and successfully implement your business idea.