The Market Analysis provides the reader an understanding of how well you know your market and if it’s big enough to support your business objectives. The section provides an overview of the industry that your business will participate in. As you narrow this sector down to the ideal customer based on your business strategy, you will define your target market. A detailed description and sizing of the target market will help the reader understand the market value you are pursuing (the number of potential customers multiplied by the average revenue for your product or service – this would then need to match your projections).
In defining the target market, you will identify key elements such as geographic location, demographics, buyer characteristics, your target market’s needs and how these needs are being met currently. If there are any direct competitors, these should be compared to how your offering will solve it in the future.
You should include the following sections:
Audience: Who is your target market? Why this and not another market? Where are they located?
Industry Type: Begin with the broader descriptions of your market opportunity.
Market Segmentation: This section is where you define the main market segments and the one or ones you are targeting now. A market segment is a group of people (or other businesses). Within the industry, identify smaller segments.
Competition: Businesses all compete in one way or another. It may be with specific, direct competitors or it may be with the way customers have been doing things for a long time. They solve their problem in a different way.
Promoting your business, whether generating leads or traffic to a website or store, is one of the most important functions of any business. In this section of the plan, provide the details of how your market your business. Describe the key messages and channels you use for generating leads and promoting the business. This section should also describe your sales strategy.
You should include the following sections:
Key Messages: Describe the key messages that will elevate your products or service in your target customers’ eyes.
Marketing Activities: What marketing activities will you employ to promote your online store?
You have $100,000. What will you do with this money? Project 1 year of costs. Breakdown the full amount into costs for the product development, marketing, website hosting, paying salaries, etc. For more information on A Market Analysis see this: https://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/economics-terms-and-concepts/market-research
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