Since the color lavender is “in” right now, every website design should follow that color pallet, right?
How do you know that lavender is “in” right now, and how do you know that it will positively benefit your companies website?
Performing a marketing analysis before starting any campaign is crucial to predicting the outcome of the campaign. It may sound like a good idea to add lavender as a color, but would that enhance your brand?
Not sure what a marketing analysis is?
A market analysis is an evaluation that is both qualitative and quantitative. It is the process by which you evaluate your market to the resources and capabilities you possess.
This is the process in which you see opportunity, value, risk, customer behavior, competition, and barriers.
Here are 8 reasons why you should perform a marketing analysis before starting a new business campaign.
1. Puts the Customer’s Desires First
Most companies view similar companies as their competition, when in reality that may not be the case. For example, if you are the owner of a frozen yogurt shop, you may think that your competition is the frozen yogurt shop a mile away from you. In reality, you see people deciding whether to go to your shop or the smoothie joint around the corner.
Performing a market analysis that focuses more on the customer and what they want will reveal so many things that you may not have ever realized.
In the end, the customer is who you want to target. If they are all debating between whether to get your frozen yogurt or the smoothie next door, your competition is the smoothie joint next door.
2. Reinforces Branding
The voice of your company is one of the most important pieces to drive successful campaigns. The way you present your companies motto, its products, and the way that you communicate with your audience is crucial.
Although typography is “in” right now when it comes to brand strategy, that doesn’t mean you should incorporate that into your website if it doesn’t align with your branding. A marketing analysis can help evaluate which previous campaigns drove the most success and why.
Was it the visual features, the amount of personalization you added, or the spectacular sale in general. In order to have more success in the future months, it is important to know what areas you are thriving in and also what you can improve on.
3. Reminds You to Look Inward
Some people have invested so much time and money into their company that they forget to take a step back and ask the question, “Why would a customer shop here?”.
The focus is always on coming up with new ideas to sell the products when in fact it should be on how to make the products better for our customers.
Performing a market analysis allows those in the company who have been there from the start to be refreshed on why the company is successful in the first place. This is then where marketing campaigns can be created in order to target a new audience or enhance the product that consumers love to make it even more desirable.
4. Price Comparison
Are you a competitor anymore? Analyzing your profit margins in comparison to what other similar companies are doing can be an important wake-up call if you are falling behind.
There is always a more innovative way to create, design, or produce a product. If your prices are the best in the business, then you likely know the most innovative way to produce it.
If your company is not on top, evaluate why. A marketing analysis will help you discover if your prices are competitive.
5. Are You Meeting Your Goals?
As a company, are you meeting your goals? If so, how do you know? The numbers when running a market analysis will help you decide whether you are meeting your short-term goals or not.
Yes, you can look at your backend analytics to track whether you are successfully getting the right amount of views, or getting enough conversions, but can you see the potential market growth through that?
In order to keep your company on track to reach its potential, a marketing analysis should be done every 3-4 months to stay aligned with your quarterly goals.
6. To See Potential Growth
Many companies want to grow into new locations outside of their city. In order to do this successfully, one must understand the market values and potentials in other areas. The best way to gather this information is to do it through research.
Look at the potential areas you would like to expand to and see if your product has been successful there in the past.
Are there competitors there? Would it be cost-effective? Would it help your business grow?
These are great questions that are marketing analysis could help discover.
7. Segmentation Ideas
Segmentation is a big part of marketing in 2018. It is one of the best ways to understand your target audience without wasting time and money on targeting the right audience in the wrong way.
Segmentation is when a company divides their consumers into existing sub-groups based on similar interests, characteristics, purchase patterns, or even by the time of day.
A marketing analysis helps you see the potential for where you can segment your contacts to send them information via social media, email, or website updates according to their interests.
For example, if you have a large group of individuals who open your marketing email at 10:00 am, and those individuals also all have office jobs, you can use that knowledge to send a subject line that says, “Are you tired of sitting at your desk?”. This will relate to this segment of contacts and will increase your open rates.
Begin Your Marketing Analysis Today
Now that you know all of the benefits of performing a marketing analysis, what are you waiting for you? The market changes dramatically in a matter of weeks, don’t be left behind!
Here is a great platform to help you get started on your research.