Five steps that can be followed to analyze

market opportunity analysis

 Market Opportunity Analysis
A tool to identify and access the attractiveness of a
business opportunity. It is a part of the business
planning or strategy processes wherein before
undertaking a new product or service, you analyze the
market for it to determine probable profit and revenue
from it. One of the most important factors considered
and analyzed in market opportunity analysis is the
forecasted demand for the product or the service.
1) Identify the business environmental forces – The
factors to consider while analyzing the business
environmental factors are - Economic conditions
and trends, Legal and regulatory situations and
trends, Technological positioning and trends (state
of the art; related R&D), Relevant social changes
and Natural environment.
2) Describe the industry and its outlook – The factors
to be considered while performing industry analysis
are - Type of industry, Size -now and in 3-5 years,
Types of marketing practices, Major trends and
Implications for opportunity.
3) Analyze the key competitors – The factors
considered here are - Product description, Market
positioning (relative strength and weaknesses, as
seen by customers), Market practices: channels,
pricing, promotion, service, Estimated market share
(if relevant) and Reactions to competition
4) Create a target market profile – The factors to
be considered are - Levels: generic needs,
product type, specific brands, End-user focus;
also channel members, Targeted customer
profiles, Who are my potential customers , What
are they like as consumers/businesspeople, How
do they decide to buy / not buy , Importance of
different product attributes and What outside
influences affect buying decisions.
5) Set Sales Projections – As many formal or
intuitive approaches as possible for determining
this should be used and then the results obtained
should be compared and then a decision should
be taken on go or no go for the product/service in
question.
Strategic marketing takes care of the
more long-term, timeless nature of the
business proposition, while tactical
marketing takes care of the more short
and medium-term, flexible aspects of the
market strategy.
 Customer Segmentation
Strategic Target market selection
Marketing
Value positioning
 Tactical Marketing:
Value Communication

Sales force strategies

Sales promotion strategies

Advertising