ENTREPRENEURSHIP

LESSON 4: MARKET NEED

ANALYSIS
 LESSON 4:

MARKET NEED
ANALYSIS

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 MARKET ANALYSIS

A market analysis is a quantitative and

qualitative assessment of a market. It looks into
the size of the market both in volume and in
value, the various customer segments and
buying patterns, the competition, and the
economic environment in terms of barriers to
entry and regulation.
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 HOW TO DO A MARKET ANALYSIS?

The objectives of the market analysis section of a

business plan are to show to investors that:
× You know your market
× The market is large enough to build a
sustainable business

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 HOW TO DO A MARKET ANALYSIS?

In order to do that I recommend the following plan:

 Demographics and Segmentation
Demographics – is the statistical characteristics of human population (as
age or income).
Segmentation – is the process of dividing into segments with similar
characteristics.
 Target Market- this is the type of costumers that are focused within the
market.
 Market Need – investors must determine the needs of the market through
analysis based from research conducted focusing on their needs.
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 HOW TO DO A MARKET ANALYSIS?
 Competition - determining the competitor’s positioning and describe their
strengths and weaknesses.
 Barriers to Entry – these are the hindrances or something material that block or
intend to block passage.
Here are a few examples of barriers to entry:
1. Investment
2. Technology
3. Brand
4. Regulation
5. Access to Resources
6. Access to distribution
7. Location 6
 SOURCE OF NEW PRODUCT
SERVICES
1. Customer
× Monitor the potential ideas and needs form customers and formally
arrange for consumers to express their opinion.
2. Existing Product and Services
× Analysis of products and services uncovers ways to improve offering
that may result in a new product or service.
3. Distribution Channels
× Channel members can help suggest and market new products.

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 SOURCE OF NEW PRODUCT
SERVICES
4. Government (Patent Office)
× Files of a patent office can suggest new product possibilities.
× New product ideas can come in response to a government regulation.
5. Research and Development
× Conduct research on your market and your costumer needs. This
results to the development and identification of a new improve
product and services.

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THANK YOU!