What are the information sources for market analysis?
The information sources used to gain knowledge and understanding of the current business environment of the organization, which can be split into two categories: External and internal information sources. The external sources aren’t always those in a published form and can include verbal sources such as ‘word of mouth’. The external information sources include:
Personal contacts, Journals/magazines, Books, Newspapers, Professional conferences/ meetings, Radio, television and internet, Professional colleagues, Customers, Commercial databases.
The internal information is all of information that is specific to the organization. This information can be compared with the external sources to get the maximum use out of both types of sources for the organization, internal information includes:
Personal contacts, Internal reports, Conference papers, internal memoranda, Committees/ meetings, Sales staff, other managers, other employees, internal databases.
For a useful marketing research which is a systematic process of analyzing data, you should involve conducting a research to support marketing activities, and the statistical interpretation of data into information. This information is then used by managers to plan marketing activities, gauge the nature of a firm’s marketing environment and attain information from suppliers.
A distinction should be made between marketing research and market research. Market research pertains to a research in a given market. As an example, a firm may conduct a research in a target market, after selecting a suitable market segment. In contrast, marketing research relates to all of research conducted within marketing. Market research is a subset of marketing research.
Marketing researchers use statistical methods (such as quantitative research, qualitative research, hypothesis tests, Chi-square tests, linear regression, correlation coefficients, frequency distributions, Poisson and binomial distributions, etc.) to interpret their findings and convert data into information.
In this regard, you should also consider a competitive analysis. Competitive analysis is that the company must know their competitors which have the same common services and products. The business can use like product cost, operational efficiency, brand recognition and market dimensions of market analysis.
Except for David A. Aaker’s 7 main dimensions of a market analysis including market size, market growth rate, market profitability, industry cost structure, distribution channel, market trends, and key success factor, there is another analysis of dimension market analysis. Based on Christina Callaway, the dimension of market analysis can be divided into four parts which are environmental analysis, competitive analysis, target audience analysis, and SWOT analysis.
The market analysis is to help company to illustrate current trend in the market and may affect the profitability. At the same time, market analysis is also to determine the attractiveness in the market. A good marketing analysis can improve organization investment decision accurately; they can be based on the attractiveness to change investment tactical.
The market analysis is to help company to illustrate current trend in the market and may affect the profitability for the business. It can be seen as a part of industry analysis with using global environmental analysis. Company can identify strengths, weakness, opportunities and threats. So that the business can define the business strategy. The market analysis is also a reference for company’s activities, like decisions of inventory, purchase, work force, facility expansion and many aspects of company.
How can we find the competitive advantage between two similar companies? Actually anticipating and reading market needs can help business leaders take significant steps towards changing the game and obtaining competitive advantage. How can we sustain competitive advantages? In terms of Richard research, The Company should focus on sustaining competitive advantage due to the swift growth global competition. Therefore, Business practice management is the following principle to maintain competitive advantage.