Market analysis Why A Market Analysis Is Important In A Marketing Plan?

Market Analysis Student’s Name Institution Market Analysis I think market analysis is the most crucial part of the marketing plan. It helps a business determine whether an opportunity in the market is worth pursuing. Given that products are intended to fulfill the needs of customers, market analysis helps in understanding the key features of the target market including its demographics, purchase decisions, and changes in taste and preference preferences. Furthermore, I think market analysis helps a business or an entrepreneur understand competitors. Market analysis is important because it provides information about market dynamics such as size, and the potential for growth. From the market analysis results, one can forecast future conditions of the market. The market analysis part of the market plan validates the opportunity that a business is pursuing. It helps a business decide whether to pursue an opportunity or not. Given this significance, it is arguably the most important part of the plan. Once a business organization has identified an opportunity in the market worth pursuing, it has to determine whether it will be profitable. I think market analysis informs the business on the profitability of a market based on the data collected. Through market analysis, a business can get to understand the important characteristics of its customers. A business exists to serve the needs of customers and it is therefore critical to understand them to be in a better position to serve them. Important information about customers that a market analysis gathers include their numbers, location, purchase behavior, and tastes and preferences. Their numbers, in this case, refers to t...