dimensions of a market analysis
A market analysis helps an organisation in determining the market in terms of its attractiveness or otherwise. An organisation will look at its strengths and weaknesses and weigh them against the opportunities and threats to understand their ability to cope with market changes in terms of new product development, changes in demand patterns of customers and forecasting the activities of the organisation. The following are the seven main dimensions of a market analysis, according to David A. Aaker.
1. Market Size
Market size is determined by current and potential sales of an organisation through information from:
a) Government data – for example inflation rates and the consumer basket surveys done by Zimbabwe Statistics provide with information about how high or low is the inflation and the poverty datum line helps to determine the likely buying patterns of consumers.
b) Trade Associations- for example an organisation can analyse information from CZI which is a lobby group which takes the concerns of industries through the Ministry of Industry and Commerce. For the example issues of capacity utilisation, a lot of companies are operating below 30% due to high operational expenses for electricity and raw materials.An analysis if such information will give a guide on market size.
c) Financial data from major players – for example an organisation can do an analysis of the financial statements of major players in a particular industry which are published in the newspaper. For example organisations like National Foods, CBZ Bank, Innscor amongst others publish their financial statements, therefore an organisation in the same industry will analyse these financials in order to determine profit or loses which will give a guideline on the market size.
d) Customer Surveys – Organisations can carry out market research to come up with information on how their customers perceive the organisation as well as their brand. Such information should be critically analysed
1. Market Size
Market size is determined by current and potential sales of an organisation through information from:
a) Government data – for example inflation rates and the consumer basket surveys done by Zimbabwe Statistics provide with information about how high or low is the inflation and the poverty datum line helps to determine the likely buying patterns of consumers.
b) Trade Associations- for example an organisation can analyse information from CZI which is a lobby group which takes the concerns of industries through the Ministry of Industry and Commerce. For the example issues of capacity utilisation, a lot of companies are operating below 30% due to high operational expenses for electricity and raw materials.An analysis if such information will give a guide on market size.
c) Financial data from major players – for example an organisation can do an analysis of the financial statements of major players in a particular industry which are published in the newspaper. For example organisations like National Foods, CBZ Bank, Innscor amongst others publish their financial statements, therefore an organisation in the same industry will analyse these financials in order to determine profit or loses which will give a guideline on the market size.
d) Customer Surveys – Organisations can carry out market research to come up with information on how their customers perceive the organisation as well as their brand. Such information should be critically analysed