Market Analysis Segment
The Market Analysis Segment of your Business plan allows you to identify your target market, the characteristics of this market, the key competitors within your market, and how your business stacks up against the competition. Market research can be accomplished in three ways; by collecting data from statistical databases, researching through trade publications and relevant print and online media, and by gathering information directly from customers within your target market. Resources for each type of research are presented below. Let's discuss each of the sub-segments that should be included within this portion of your business plan.
Industry overview: This is simply a discussion about your chosen industry. Include information within this overview such as the history of the industry, its size, major players, major products or services, sales trends, and growth outlook.
Resources:
Market Analysis: This section is a specific overview of the market which you are targeting within your industry, including the demographics of your customers, where they live, their income level, and buying habits.
Resources:
Online Survey service with which to collect data from directly potential customers.
General statistics for specific areas of the country.
Demographics database by state, county, or city.
Demographics by city, including income.
Competitive Analysis: This section should assess your competitors position within your target market and your business strengths and weaknesses in relation to the competition.
Strategic Plan: Your marketing plan, how you will reach this particular tarket market, and your sales strategy.
You may also opt to purchase market research about your industry from a Market Research company, depending on your needs. The following firms provide such services:
The Entrepreneurial Perspective: The Marketing Segment of your Business Plan will serve as a plan of action for attracting customers/clients to your business. This section provides an opportunity to have your game plan written down for easy reference. It also allows you to get to know your industry, target market, and competitive position better.
The Investor Perspective: A good marketing plan is key in an investor's or lender's investment decision. Marketing gives exposure of your business to potential customers or clients. Without proper exposure, your potential client base will not be fully reached. Failing to fully reach out to your potential client base will mean less revenue, and the potential that your investor's investment could turn sour.
The Partnership Perspective: The Marketing Plan also gives potential partners a chance to delve into your exact plan of action for attracting business, while learning exactly who makes up your target market and what kind of competition they could potentially face.
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