How to Write a Market Analysis

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  • 0:03 What Is a Market Analysis?
  • 0:53 Overview of Industry Section
  • 1:40 Target Audience Section
  • 2:28 Analysis of…
  • 3:25 Strategies & Goals Section
  • 4:05 Lesson Summary
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Lesson Transcript
Instructor: Joseph Moore

Joseph is an Adjunct Faculty member. He has a Ph.D. in Public Policy and Administration.

In this lesson you will learn how to write a market analysis. You will understand what specific information should be included in each section of a market analysis.

What Is a Market Analysis?

A market analysis is an in-depth review of the industry or business that you are involved with. If you need to write a market analysis, you typically need to consider the status of your company's industry, your company's target audience and competitors, and your company's strategies and goals. However, market analyses may differ based on the industry and the size, leadership, and vision of the company, which naturally results in documents of different lengths.

A market analysis is important when a company is requesting a loan or support from its stakeholders. The market analysis allows your stakeholders to understand the industry and your company's plan and vision for business success.

In this lesson, we are going to take a closer look at each section of the typical market analysis.

Overview of Industry Section

The overview of industry section should provide specific details pertaining to your business or industry. The information should include a description of the business or services you provide. This section should also include statistics about the current state of your business, such as average cost of products and trends. Additionally, discussing challenges that this market and business encounters is relevant, as well as potential growth opportunities.

Imagine you are planning to go see a movie, and you have no idea what movies are showing at the theater. You go to the movie website to get synopses of the different movies that are playing. Like the movie website, the purpose of the overview of industry is to provide an individual with a basic understanding of the industry or applicable market.

Target Audience Section

Ideally every business would want all consumers to be its customers, but, in reality, most businesses have a specific audience or group of people who are considered their customers. In this section, it is important to define the market or your industry's target audience. This section should include information pertaining to the gender, race, demographics, and educational level of your consumer. The more a business knows about their target audience, the better.

For example, a business that specializes in snow removal probably wouldn't want to start a company in Hawaii. A snow removal business in a location that has neither snow nor a target audience for that specific service or product will be ineffective. Identifying your business's target audience allows informed decision making.

Analysis of Competitors Section

Of course, your company is not often the only one trying to win the business of your target audience. That's why understanding what your competition is doing as it relates to the industry and market is imperative. Key competitive data includes financial data, leadership, target audience, and also their strengths and weaknesses.

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