How to Write a Marketing Analysis
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After you find out about your market for a business plan, you also want to communicate that knowledge to the readers of your plan. Keep your explanations clear and concise. The depth of detail in market analysis will depend a lot on the type of plan. You may not need to provide a complete market study in a plan developed for internal use, when all of your team knows the market well. Maybe you'll just cite the type of customers you attract and the part of town you serve. The market analysis section in a business plan is the section that is most likely to ...view middle of the document...
You may also want to summarize market growth, citing highlights of some growth projections, if you have this information available.
Assume that this paragraph might be included in a loan application or summary memo, so you need it to summarize the rest of the section. What information would be most important if you had only one brief topic to include about your market? A good technique is to skip this topic until you have finished the rest of the section, then go back to the summary to write the highlights.
Explain Your Segmentation
Make sure to explain and define the different segments, particularly since you refer to them and they are the basis of your strategy. What distinguishes small business from large business, if this is part of your segmentation? Do you classify them by sales, number of employees, or some other factor? I've seen segmentations that define customers by the channels they buy in, as in the retail customer compared to the wholesale or direct customer, also compared to the Internet download customer. Have you defined which segment is which, and why?
As you deal with segmentation, you should also introduce the strategy behind it and your choice of target markets. Explain why your business is focusing on these specific target market groups. What makes these groups more interesting than the other groups that you've ruled out? Why are the characteristics you specify important? This is more important for some businesses than others. A clothing boutique, for example, might focus on one set of upper-income customers instead of another for strategic reasons. An office equipment store might focus on certain business types whose needs match the firm's expertise. Some fast-food restaurants focus on families with children under driving age. Strategy is focus; it is creative and it doesn't follow prewritten formulas.
Explain Market Needs, Growth, and Trends
All marketing should be based on underlying needs. For each market segment included in your strategy, explain the market needs that lead...