1. Understand the Industry Performance and Market Position
There is a correlation between how a business will perform and income potential from industries that buy goods and services. The key to predicting business performance is to understand how well an industry is doing and how market trends will affect sales performance. Industry analysis helps businesses predict changes, react strategically, and understand the best market position to execute sales campaigns. A complete analysis should also determine how businesses can differentiate their products or services from competitors operating in the same markets. Researching industries helps identify risks to avoid entering high competition markets resulting in low growth potential due to a saturated market. The goal of an in-depth analysis should provide a good understanding of target market areas where businesses can succeed. All this information is necessary to take the next steps in completing the market analysis and initiating sales campaigns.
2. Where to Purchase Industry Research Reports
Companies such as Gartner, D&B, and IBIS World provide extensive Industry Reports. These types of reports consolidate information from thousands of sources providing in-depth business intelligence for specific industry targets. Reports have been historically expensive and not affordable to small or medium-sized businesses. Technology advancements have now levelled the playing field. Industry reports and business intelligence have become affordable and available from companies such as AllBizOps which offers Industry Reports that are part of online research platforms. Examples of other online research platforms include Mintel and Global Data which vary in pricing.
Market Research Reports
AllBizOps Market Research Reports are available for over 500 Sectors. Each report provides an overview of sector income and expenditure, establishment counts by region, division and state.
The report also includes a breakdown of the customer sectors, supplier sectors, 5 year analysis highlighting the fastest growing customer and supplier sectors, and the distribution of establishments in both customer and supplier sectors.
3. Understand How Your Business is Positioned to be Successful: Complete a SWOT Analysis
One of the most important outcomes of an industry analysis is to complete a SWOT analysis. Identify your Strengths, Weaknesses, Opportunities, and Threats (SWOT) based on the understanding gained from your Industry Analysis. Knowing strengths is important to further identify target markets. For example, let’s assume the industry analysis has identified a high growth market, but currently, your business is not equipped to handle the volume of orders the industry analysis is projecting. As part of a longer-term business strategy, make sure to expand and prepare for these types of orders. Also, make a list of your main competitors. Review each competitor and determine their strengths and weaknesses. Understand what competitors offer that you don’t. Learn why a potential prospect will pick a competitor’s business over yours. Understand the threats competitors pose to your business. A good online market research platform is an excellent tool to help with this research. All the information you need should be easily and quickly available using a search that is customized to business marketing goals. There are many free online templates that can be used to complete a SWOT analysis. Template Lab offers many templates that can be downloaded for free.
4. Bargaining Power of Buyers and Suppliers
Identify whether a target market or industry relies on a small number of suppliers which control most of the bargaining power. This information helps with competitive price targeting. The complete opposite happens when the bargaining power is controlled by customers. When buyers have market power, they are positioned to negotiate lower prices, better quality, or additional services and discounts. This happens in industries with more competitors and a small number of buyers that control a large share of industry sales.
5. Market Analysis: Confirm Your Strategic Opportunities
Business intelligence obtained from industry analysis is needed to complete market analysis. Results confirm strategic opportunities and points marketeers in the right direction. A Market Analysis will further define market strategies and identify sales forecasts to initiate sales campaigns. While an industry analysis identifies strategic opportunities, the market analysis confirms the profitability and commercial feasibility of a company’s products or services which helps identify production and operational targets for business activities.
Traditionally, completing thorough Industry and Market Analysis has been time-consuming, expensive, and available only to larger companies. There is increased pressure to see immediate results using online advertising and Marketing Automation. These approaches tend to be expensive and risky, especially when online marketing advertisements are not set up properly. All too often companies spend thousands of dollars on online advertising only to discover ads are set up incorrectly and do not target the right audiences. Technology is now available to complete Industry and Market Analysis using online Market Research tools. Automation has paved the way to complete low-cost analysis in days rather than weeks or months offering marketeers more options to grow business opportunities.