With new technology constantly being created, introduced, and implemented, the business world is experiencing an era of change that rivals even the advances made during the industrial revolution. In order to be able to keep up with these changes, businesses rely on the competitive advantages afforded them through effective strategic market analysis.
Market analysis is a term that describes the study of how a specific market moves. As a market rises and falls, grows and shifts, tracking this movement and subsequently charting it is what a market analysis aims to do. The goal being to provide a clear image of the market’s overall progression. This kind of analysis also looks at underlying causes of market change, including customer-related information. In essence, strategic marketing analysis acts as a sort of business plan, presenting an informed blueprint that can be followed in order to have the highest probability of business success.
The need for business analysis is one that most industry leaders can agree on, and that need is only going to increase. In fact, 92% of high performers strongly agree that harnessing the power of analytics is strategic to future success.
This is because strategic market analysis offers several important advantages beyond simply detailing the motion of business markets. Some of these advantages are:
And as advances in technology have enabled businesses to more-closely analyze their markets, advanced applications and tools are making it possible for organizations to automate their analysis processes. When used correctly, strategic analysis tools allow businesses of all sizes the opportunity to see exactly what factors are influencing the market, as well as their position in it—while still maintaining an easy learning curve.
In order to be able to perform an accurate strategic analysis of any kind, a business should consider various methods. The most widely recognized analysis methods are:
Additionally, certain applications and tools may provide significant strategic market analysis benefits. These tools often use intelligent automation to assist in locating market opportunities, pinpointing motivators, identifying target clients, improving value propositions, comparing competitors, and more. Of the tools available, the most effective ones offer certain features:
Across businesses large and small, 65% of those surveyed in the 2015 Salesforce State of Analytics report are confident that the importance of analytics is on the rise, and will increase substantially over the next two years.
Those organizations that embrace strategic analytics will experience a significant advantage over their less analytically-minded competition. Because even though the market is always changing, the need to be able to identify and prepare for those changes will always remain.