A market analysis is a quantitative and qualitative assessment of a market. It examines the market size, various market segments, customer buying patterns, the competition, and the economic environment.

Experienced research firms understand how to conduct a market analysis so that it is both comprehensive and concise, answering a range of questions, including (but not limited to):

• What is the market size?
• Who is the target customer?
• What is the competitor environment?
• Is the market growing or contracting?
• What are potential disruptors?

If you want your business plan to be successful, you will need to carry out a market analysis. A comprehensive market analysis forms the basis of the development of a marketing strategy and concrete marketing measures.

Further reasons for conducting a market analysis:

• • With a market analysis, you can back up your business idea with figures, data, and facts, and therefore provide a convincing business plan.
  • You can recognize market potential at an early stage and avoid making the wrong decisions.
  • You can identify any existing knowledge gaps and fill them in on time.
  • A market analysis shows you which competing products are already on the market.
  • With a market analysis, you can identify the market entry barrier and estimate the market attractiveness.