Market study

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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 your supply and demand, prices, needs, potential customers, competition, etc.

Thus, the market study or analysis offers the necessary knowledge for taking decisions future Y establish different marketing policies.

Furthermore, market research is a pre-investment review that companies do to find out what is convenient and viable for their benefit.

Market study characteristics

The main characteristics of the market study are the following:

Analyze information about the supply, demand, prices and marketing of a market.
It is a fundamental process for determine the direction of an organization.
It is used to determine if a market is profitable or not for a company and understand the potential customers 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 set prices of a product.

Steps to conduct a market study

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

Steps to carry out a market study.

Collect information: as a first step it is necessary to collect all the possible information, and then analyze it. This implies going to different sources, such as surveys, media, interviews, the internet, etc.
Analyze customers (demand): analyze the needs of customers, who can be potential customers, what they are looking for and what they need.
Analyze the competition (offer): here it will be necessary to carry out a research and analysis of the competition, what is doing well and what is not, and based on this define opportunities together with strategies for the business.
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 should be developed based on the objectives that must be met.
Establish conclusions: As a final result, a conclusion of the entire analysis, a final report, must be developed. In it, the analyzed must be established, 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 study examples

While a market study it 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 open a branch in a town. To do this, they go to carry out surveys, interviews and analysis of the competition, together with the economic indices of that city, to define if the market is profitable for their business.
A company identifies a weakness in competition and decides to work on it to gain market within this gap. This action arises from a market study.
Review the economic indices of a specific country to determine if it is profitable to invest in an organization, it is a market study.

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