Market assessment study is an effective strategy that can interact in your favor, as it is able to guide you on the aspects that you should focus your efforts on, and the aspects that you should work on improving or changing.
As well as discovering the places and angles in which you can invest resources and the feasibility of projects and other aspects.
And in light of this topic, we will discuss the market assessment case study and the most famous market assessment tools used in the market assessment report.
What is a market research assessment?
A market assessment study is a study of the needs for the services to be provided by the project in order to reach the best-estimated information about the expected demand in the target market.
Through which the activities that the project will engage in and the services it will provide are determined.
Moreover, the information required for market assessment model is not limited to quantity only, but must also be exposed to the detailed structure of demand, the geographical distribution of demand, and the cost as well.
On the other hand, the supply study responds to quantity, quality, and cost as well. As well as predicting the demand for these services in the target markets.
And providing information about the competition situation in the markets that the new project wishes to provide and other market risks.
How do you do a market assessment?
The process of market assessment model comes according to sequential steps, as follows:
1- First: What exactly do you want from your market analysis? That is, you must identify all the motives that drive you to study the market. For example, do you aim to achieve external goals that are more market-related or internal to the organization? Or both, and here are examples of both goals:
- External goals: such as identifying who your competitors are and studying and exploiting their strengths and weaknesses, or identifying who are the potential customers you want to target, or preparing a comprehensive and strong file to persuade those you wish to borrow from or attract investment.
- Internal goals: such as improving one of the internal functions of the company as a process (production, marketing, sales forecasting, or improving financial liquidity).
In addition to that, identifying the strengths and weaknesses of your organization, the opportunities available to it, and the threats it faces, and if the aim of this market assessment report is to do so, it is better to rely more on conducting a SWOT analysis.
2-Second: Draw up a detailed outline of the stages of your work. It means being precise in describing the stages of your work since it began: Where was it and where did it arrive, i.e. today and where is it heading?
In this, you will need all previous data related to your business and current data to measure the volume of previous sales, for example, the volume of internal vital operations.
And other things related to measuring the business growth curve, then predicting the future to orient the future and developing a special vision, all of this will facilitate the following for you later:
- Attracting and persuading investors.
- Gaining a competitive advantage.
3-Third: identifying potential customers
And by them we mean the target audience that you will deal with, that is, the candidates to acquire your products or benefit from your services, who are supposed to be on a narrow and not open targeting range.
Because opening targeting, although it is tempting and attractive on the surface, is in fact a waste of time and marketing effort in particular, because it is impossible for everyone to want what you offer, otherwise the business will become easier than drinking water.
Accordingly, focus your efforts on one category and follow these steps to identify the target customer segment, then make an effort to understand them well, and this is achieved by knowing:
1- Geographical scope:
Where are your customers? Where is their geographic area located (country, county, city, etc.), and again (the narrower the targeting, the better the results).
For example, if you own a chain of gas stations, you will have to conduct a market assessment framework at the national level, not just the local level, that is, according to the need and the spread of your customers.
2- The demographic aspect:
It includes information such as (age, gender, religion, …) and everything related to population and demographic statistics.
That you will often find in official statistics carried out by governments or unofficial ones carried out by local, regional or international organizations, and other secondary sources for target audience analysis.
3- The technical side:
It is necessary to know what kind of electronic devices potential customers use and their operating systems, such as: Do they use smartphones more than computers?
And if the answer is yes, what is the most popular operating system among them (Android or IOS) and so on. Because the technical differences make the difference.
Especially with the increasing importance of digital work, for example, the structure of displaying an online store on the phone differs from the computer in terms of image dimensions, available buttons, advertising banners, and so on.
4- Personal traits:
It includes: the nature of the customers’ lifestyle, their social classes, their financial capabilities, and their personal beliefs – not necessarily religious – then we have the customs, traditions, cultural backgrounds, and academic qualifications.
5- Behavioral traits:
At this stage, all you have to do is observe and measure users\’ reactions and interactions with your products or services, by (analyzing the data of your marketing campaigns, conversion rate, and traditional or digital surveys such as Survey Sparrow…)
6- Monitor your competition:
It will also help you identify potential customers and understand them well because if your activity is similar to that of your competitors, it will be obvious that you participate in the same customer category with a very large percentage.
What are the factors of market assessment?
There are several factors that help in the market assessment framework process, such as:
1-Market study and analysis:
This step aims to reach clear information about the total market size on the one hand, and the most attractive sector or sectors on the other hand. Of course, this information is very important.
As it will determine the size of the market and the sectors to focus on, and it will also contribute to determining the size, type, and appropriate timing for investment.
On the other hand, a distinction must be made between the macro market; Which represents the total expected revenue for your product, and the available market;
Which expresses the sector in which the product can compete in it strongly and realistically. Moreover, factors influencing this must be taken into account, such as economic, social, demographic, legal, and others.
2-Identifying and targeting customers:
This step aims to identify the customers most likely to accept and purchase your products; These will form the nucleus from which you will start to expand in the market, and they will help accelerate your marketing efforts.
Here we advise you to divide these customers into different categories; A category that includes end customers (that is, individuals who will use the product to satisfy their personal needs), another category that includes merchants, a third category that includes suppliers, and so on.
3-Competition Analysis:
Knowing your potential competitors in your target markets is just as important as identifying your target customers. He will decide how far you can confront them and overcome them.
So; you have to study their products very carefully, get to know their strengths and weaknesses, and use them to market your products.
Among the most important things that should be focused on in analyzing competition are: cost, prices, level, and speed of service, and the technology used.
In addition, there are many market assessment example that you can see regarding this step.
What are the components of market study?
The elements of market assessment study help you achieve many positive results, whether this is reflected in your product or the service that you work to provide, as attention is paid to several important and different aspects that help to develop the optimal plan.
And therefore the matter is determined according to many important factors, all of which you can determine Through a good market assessment case study and its various elements, which can be mentioned as follows:
1-target market:
When collecting information from statistics and data for a market assessment report, the focus is on the target market as one of the most important elements of the market study for distributing the project’s product, as there is a special market for a region, another local market, and a regional market in addition to the international market.
In order to determine the size of the demand for the product and estimate the project’s share of the total percentage Available market demand along with determining the proposed production capacity and market analysis to predict the expected size of the demand for the product in the next period of time.
2-product and market needs:
The product is considered the main element of the market assessment model on which the organization relies in reaching its multiple objectives.
The market assessment report of a project for the absorption of the product depends on the tastes of the final consumers of the product in terms of shapes, varieties, sizes, and the degree of importance of the product.
Its specifications, advantages and quality, and this are obtained through the study of commercial cases Various through which the product is available:
- In the case of relying entirely on importing the product, information can be obtained through import data related to product specifications, its purchase price, imported quantities, and packages.
It is also possible to obtain the product’s selling price and the amount of demand for it through the target market and to study opportunities for producing similar goods with specifications that are in line with the consumer’s taste.
- In the case that the commodity is produced locally, then what is required in this case is to know the number of producers, the quantities that were produced, specifications, prices, the demand gap, and the rates of increase in demand.
- And in the case that the production of the local factories is not sufficient to cover the market demands, you may consider taking advantage of the opportunity to establish a new factory that produces similar commodities.
- In the case of the new product, it is possible to rely mainly on the development of a similar commodity that was introduced to the market.
And its sales have evolved since its introduction to the market and try to identify the number of buyers for it in one month until you reach the amount of sales expected to be achieved by the commodity.
3-Project market share:
As for the third element of the market assessment framework, which is the share of the project in the market, it is indicated that the market assessment study is concerned with predicting the size of the expected gap in demand. It requires, first and foremost, an estimate of the size of the previous, current, and expected market gap.
This is carried out according to scientific statistics by subtracting the expected supply of the product from the expected demand for it for each of the years that the project continues, by identifying an estimated Demand and supply estimation.
- Estimating demand: It is possible to estimate the volume of demand for products by identifying consumers and their various characteristics such as their age, behaviors, needs, and the growth rate of such categories during the previous years. Accordingly, an estimate of the volume of demand is expected for the coming years.
- Supply Estimation: The supply of products can also be estimated by identifying the total production capacities of existing projects in addition to the production capacities of projects that have obtained licenses and are expected to start production in the coming period.
4-pricing:
Pricing is a complex process associated with several economic and competitive considerations. It is a dangerous weapon, so a lack of accuracy in determining the price may lead to the final loss of the customer or the infliction of heavy material losses on the project.
This pricing process takes place as an important element of the market assessment case study based on comparative studies of a group of factors affecting the price. Supply and demand, level of quality, competitors’ prices.
And other factors and the price of the service or product must be within the prevailing and accepted average for the prices of similar products, with an attempt to determine and select the price that achieves the highest profit rate.
5-business practices:
Commercial practices come at last in the list of market assessment framework elements. It can be said that commercial practices are a group of integrated and interrelated marketing activities that include the nature of products.
Methods of distribution, methods of setting appropriate pricing for them, and the means that make these products reach the consumer. Such marketing mix consists of the following elements:
- Distribution: To clarify the various practices used by competitors in distribution operations and to choose the channels they use to deliver products to customers at the right place and time, such as wholesalers, retailers, and agents, in addition to calculating the costs of the distribution process.
- Promotion: To clarify the range of promotional procedures and policies available in the region, the methods used and relied upon by competitors to attract customers, and the costs necessary to carry out the promotion process, such as personal selling, print ads, radio and television advertising, billboards, banners, advertising, gifts, special events, exhibitions, and others.
- Prices: Obtaining information about the prices of competing items and the reasons for their high and low prices, and trying to obtain the highest possible profit percentage.
- Procedures for completing the sale: In the sense of determining whether the sale is in cash or through debt, the expected repayment period, and methods of dealing with debt.
Taking into account all the circumstances surrounding the project’s productive capabilities, marketing competencies, selling to salesmen and distributors, as well as established pricing policies, discounts, and incentives.
importance of market assessment
In general, there are many advantages that can be obtained when conducting a market assessment report, and some of them can be mentioned as follows:
- Identify the size of the market or the size of the market segment that you must work on, in case you are thinking of selling your products or launching a new product.
- Identifying real consumer needs, and details such as costs, customer preferences, consumer and purchasing habits, income and spending level, and so on.
- Identify the changes that occur in the purchasing habits of customers in order to enable entrepreneurs to respond to and adapt to them.
- Obtaining valuable and valuable information that can be used to maintain or obtain a new position or a unique position in the market.
- Detection and investigation of new sectors and market segments or secondary market segments in the market.
- Get to know competitors well in terms of expected size and strength in the market and ways to influence the audience of competitors.
- Making the necessary changes in the shape and type of the product in a way that contributes to raising its value in the target market, in order to achieve the desired results.
- Develop plans and strategies necessary to solve expected problems when entering the target market based on accurate data analysis.
- Attracting highly qualified human resources that meet the needs of commercial or service investment based on the objectives and needs of the market.
Related Question
What is the difference between a market study and a feasibility study?
The feasibility study of any project includes identifying the desired objectives of this project, whether they are commercial or economic goals, in addition to analyzing the project theoretically and scientifically.
The feasibility study is often the responsibility of the manager, as, after the study, he is the one who decides to proceed with the project, or to cancel the idea completely and search for another idea, or to make some adjustments to the feasibility study of the project.
As for the market assessment study, it is very briefly one of the most important stages that the project must go through before starting implementation.
Moreover, the market assessment case study is a process that requires a specific methodology because it is complex and needs a lot of time, and it is better to seek the help of a specialist in the field of feasibility studies.
To summarize,
some may think that market assessment study is one of the complex processes that statistical experts resort to, but in contrast to this matter, the market assessment case study is an important step to understanding the market well, as this process is done through some tools known as market assessment tools. Moreover, there are also many market assessment example that you can view.
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