MARKET

NEED
ANALYSIS
DEFINE THE MARKET NEED FOR
THE NEW BUSINESS

In analyzing the market need, the following

questions should be asked:
1. Who will get interested in my product?
2. What does the market need or want?
3. Who is buying the product? What and
how much? Or how, where and why are
they buying the those goods or
services?
MARKET ANALYSIS
A market analysis is a quantitative and
qualitative assessment of a market to
respond positively.
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 in
the industry.
HOW TO DO A MARKET ANALYSIS?
This is to show to the investors that company knows their target
market. It is large enough to build a sustainable business.
The following activities can be recommended:
1. Demographics and Segmentation
a. Demographics is the statistical characteristics of human
population (as age or income) used especially to identify
markets; a market or segment of the population identified by
demographic.
b. Segmentation is the process of dividing into segments with
similar characteristics. Markets are needed to slice it into
different segments. This is especially relevant if competitors
focus only on certain segments.
HOW TO DO A MARKET ANALYSIS?
2. Target Market
This is the type of customers that are focused
within the market. It is focused on the more
qualitative side of the market analysis by looking at
what drives the demand.
3. Market Need
investors must determine the needs of the
market through analysis based from research
conducted focusing on their needs. Identify what
the customer wants to classify their needs.
HOW TO DO A MARKET ANALYSIS?

4. Competition
Determining the competitor’s positioning and
describe their strengths and weaknesses.
Analyze competitors’ angle to the market in
order to find a weakness that company will be
able to use in its own market positioning. One
way to carry the analysis is to benchmark the
competitor against each of the key drivers of
demand for the market (price, quality, add-on
services, etc.) and present the results in a table.
 BARRIERS TO ENTRY
This are the hindrances or something material that
block or intend to block passage. It is a natural
formation or structure that prevents or hinders
movement or action or even separates the new
businesses.
Here are a few examples of barriers to entry:
1. Investment 5. Access to resources
2. Technology 6. Access to distribution
channels
3. Brand 7. Location
4. Regulation