Market

Need
Analysis
PREPARED BY: CHESCA FLORES
 Outline

Situational analysis and specification of objectives

Collection of secondary information

Conduct of market survey

Characterization of the market

Demand forecasting

Uncertainties in demand forecasting

Market planning

•
What is
Market Need
Analysis?
Market analysis is a diagnostic process to
uncover the root causes and not just the
symptoms of why markets underperform for
poor people. A thorough market analysis will
help you understand how the market operates
and how it affects the poor.
 Situational Analysis

In order to get “feel” of the relationship between the product and its market, the project analyst may informally talk to costumers,
competitors, middlemen, and others in the industry. Wherever possible, he may look at the experience of the company to learn about the
preferences and purchasing power of costumers, actions and strategies of competitors, and practices of the middlemen.
 Collection of secondary information

Secondary information is information that has been gathered in some other context and is readily available.

Secondary information provides the base and the starting point for the market and demand analysis. It indicates what is known and often
provides leads and cues for gathering primary information required for further analysis.
 Conduct of market survey

The market survey may be a census survey or a sample survey; typically it is the latter.
 Characterization of the market

Based on the information gathered from secondary sources and through the market survey, the market for the product/service may be
described in terms of the following:

Effective demand in the past and present

Breakdown of demand

Price

Methods of distribution and sales promotion

Consumers

Supply and competition

Government policy
 Demand Forecasting

Demand forecasting is a technique that is used for the estimation of what can be the demand for the upcoming product or services in the
future. It is based upon the real time analysis of demand which was there in the past for that particular product or service in the market
present today.

You can improve forecasts by following some simple guidelines:

Check assumptions

Stress fundamentals

Beware of history

Watch out for euphoria

Don’t be dazzled by technology

Stay flexible
 Market Planning

A marketing plan is the advertising strategy that a business will implement to sell its products or service. The marketing plan will help
determine who the target market is, how best to reach them, at what price point the product or service should be sold, and how the
company will measure its efforts.

A marketing plan usually has the following components:

oCurrent marketing situation

Opportunity and issue analysis

Objectives

Marketing Strategy

Action programme