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IV. Market Analysis

Provide an analysis of the industry, customers, market, and competition in sufficient detail that the reader knows that you understand what it takes to succeed in your industry.

1. The Industry.
   1. What industry are you in?
   2. What are the major trends within the industry?
   3. Is the industry in a growth phase?
   4. What uncontrollable variables (government regulations, economy, technology, etc.) could affect the industry?
2. Customers.
   1. Who are your target markets (to whom do you sell)?
      1. Who are your main customers?
      2. What is their buying trend with you?
      3. Who are the people making the buying decisions and what needs are they trying to fulfill?
      4. Why do your target markets buy your products or services?
   2. When do they do their purchasing?
      1. Sporadically (car, travel)?
      2. Weekly (groceries, gas for the car)?
      3. Annually (insurance)?
      4. Seasonally (holiday items, sporting goods)?
   3. How does the customer like to pay for the product or service?
      1. Cash or credit?
      2. How will you offset delinquent payment by your customers?
   4. Do your customers purchase in small or large quantities?
   5. What are the ways your target markets find out about you? Describe your advertising and promotion plans.
3. Market Size And Trends.
   1. What are the characteristics of your target markets?
      1. Demographics (age, sex, income, profession)?
      2. How were these characteristics determined?
         1. Survey.
         2. Literature review.
         3. Manufacturer or trade association.
         4. Discussions with customers, suppliers, distributors, etc.
   2. What is the current size of the market(s) you serve?
   3. Is the market competitive?
      1. Does your business retain a profitable share?
      2. Does the market have potential for added growth?
   4. If the market does grow, do you have the resources that are needed to maintain your current share?
   5. In what ways will you attract additional customers to your business?
4. Location.
   1. Where is the business located?
   2. How would you describe the area? Is it compatible with the needs your customers are trying to fulfill?
   3. For the area of your location, what are expected population trends?
   4. What are the advantages of your business location?
      1. Easily accessible?
      2. Close to your customers?
      3. Close to your suppliers?
   5. Do you know the local zoning laws?
   6. Are there any new area developments upcoming in the next five years which could affect your business?
5. Competition.
   1. Who are the key competitors in your market and market segment?
   2. Is their business currently increasing, decreasing, or steady?
   3. What are your competitors' strengths and weaknesses?
   4. Do your business strengths and weaknesses match up favorably with theirs?
   5. How will your operation be better than theirs?
   6. Why will customers buy from you rather than them?

Marketing Planning Templates

Market Analysis (xlsx, 24k)

Competitive SWOT Analysis (xls, 22k)

Next Section - Approach to Selling.

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