Market Analysis

Objective of the Study

The objective is to study
 Concept of Political Environment Impacting International Business
 Political Strategies to function in the host Country
Market Analysis
 Study of attractiveness and dynamics of a special market
Industry analysis
 Global environmental analysis
 analysis of company
 documented investigation of a market
Market analysis helps in designing strategies because it gives an internal analysis of strength
of the company in relation to the environment. The other international statistics in market
analysis is documented.
Ethics of studying various parameters is to study and design the attractiveness of particular
business in particular environment. It is to study the dynamics of changing environment in
relation to attractiveness of industry.
Business and activity analysis- This is to inform a firm's planning activities particularly
around sections of inventory and purchase. It is workforce expansion or contraction. Facility
expansion happens with the purchase of capital equipment and promotion of activities and
many other aspects of the company.
Activity analysis is designed to see how much money is invested in internal company
planning for buying resources, which are in the stage of sourcing like buying raw materials to
take the shape of finished goods.
So the strength of company is calculated on basis of investment of money. It is important to
see who the competitors are. The purchase of stock and asset valuation of company would
decide the power of company to build prices in the market. If the competitive strength is less,
the company can do with little capital but if the competitive strength in the market is high,
then the company has to invest more in marketing and advertising so as to build brand
preference in the market.
Market segmentation - is the basis for creation of a differentiated market. The consumers
need more individual products and services. Segmentation includes research about market
structures and processes to identify and classify the relevant market.
Business and Activity analysis
 inform a firm's planning activities, particularly around decisions of inventory
purchase,
 Work force expansion/contraction, facility expansion, purchases of capital equipment,
promotional activities, and many other aspects of a company

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Market Segmentation
  Segmentation is the basis for a differentiated market.
 Consumers need more individual products and services
 Segmentation includes research about market structures and processes
 Identify and classify the relevant market
Market segmentation is designed so as to create a differentiated product. We have fast
moving products which are uniformly accepted all over the world with same class of people
but if you want to promote a product which is little different in function, prices and shapes
and size, research is needed to design.
It is important to analyses the demographics of market and see the popularity of product, so
that it can be bought at a price, which is acceptable to the people. When working with
differentiated products, it is important that we add USP, Unique Selling Proposition to the
product so that it is accepted by a particular class and segment of market. Segmentation is
research on the basis of education and income level and detailed analysis of market so as to
match inequality and parameters of the product.
Customer segmentation & research
 Creates competitive advantage
 Concentrates on market energy and power
 Segmentation requires a lot of market research
 Identify customer needs and wants
 Develop products to their satisfaction.
 Match customer wants and product benefits
 Focus marketing expenditures
Segmentation is matching the needs of customer with the product functionality. A class of a
particular customer with relation to their education, age and income have different
requirements. On basis of this requirements, if a company is able to design a product, which
is at affordable price then it can connect with a particular segment.
The product need to be differentiated for this parameter so as to create a better connection in
the market. The basic parameters of segmentation can follow generalized rules. The
geographical demographics and behavioural demographic is broad classification for
segmentation.
Geography would be on the basis of the area i.e. Northern or Southern Ares in any economy.
Geographical differentiation is also according to weather conditions, distances, and
development and distribution channels.

Basic parameters for segmentation

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  Businesses can follow generalized rules like geographic, demographic,
psychographic, and behavioral.
The parameters of education, income and Groups of psychographics relate to attitude and
perception. The study of motivation for customers is to connect with a particular brand. The
behavioural studies involve the ethics, which motivate people to invest money in market
behaviour. It is related to habits and cultures of people, where we need to work according to
local perceptions and traditions so that product is accepted in the market.
Ideal Market Segmentation
 A good market segmentation should be sustainable, accessible, actionable,
measurable, and differentiable
A sustainable market segmentation is designed so that it does not involves much cost but it is
widely created area which could be accessed by the marketer , where he can design strategies
to understand the perceptions of people, where values are clear. The products are designed
according to their preferences. It is important to filter that segmentation, which is measurable,
identical and which would be calculated on basis of what is desired by the customers i.e. it is
easy for companies to design products .
Dimensions of Market Analysis
 Market size (current and future)
 Market trends
 Market growth rate
 Market profitability
 Industry cost structure
 Distribution channels
 Key success factors
 Key success details

The success factors are

Market size - is volume or value of demand created in the market.
Trends- would be something which is related to pattern, sizes or colours
Growth rate - average increase in sales turnover per year
Profitability - margins which can be kept on product cost. If products are in a saturated
market, margins are less but the products are innovative, price can be high to give
profitability
Industry cost factor depends on connectivity, infrastructure and availability of big
equipment’s.
Distribution channels – build convenience to take products to customers because these
channels help in reducing cost of distribution. The success factors and details evaluation

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helps to build the brand power of company. The detail analysis helps the company to connect
with customers on the basis of networks and relationships.

Market Analysis
 Determines attractiveness of a market
 Evaluate future attractiveness of a market
 Understand evolving opportunities, and threats
Market analysis - helps to filter and design a particular segment. It will give size of parameter
of market, brand and would help to decide the attractiveness and opportunity of a particular
segment.

Investment Strategy
 investment strategy affect inventory  levels, a work force  expansion/contraction
 facility expansion
 Purchases of capital equipment, and promotional activities.
Investment is a decision taken by management of company depending upon value of growth
of company in relation to market opportunities.
If it is opportunistic and favourable for company to invite investment, not only from internal
sources but from Angel investors, foreign investors, other institutional financial hub and bank
or financial institution, then this can help the company to grow. The investment of funds
would help the company to create capacity to expand the volume of business but if market is
not opportunistic, then company can go for contraction i.e. no of labour can be lowered or
shut down depending upon opportunity.
The investment has to be decided. The basic cycles of business in market related to fixation
has to estimate for recession phase or expansions. The value to invest money and cost of
interest rate is just to balance operation as its relation to e demand. The market prices depend
on market value and market potential. The market value reflects the sales volume of a special
market. The volume is dependent on quantity of consumers demand. The market is measured
in relation to quantities or qualities.
Market Size
 Is defined through market volume and market potential.
 The market volume exhibits totality of all realized sales volume of a special market.
 Volume is dependent on quantity of consumers and their demand.
 Market volume is either measured in quantities or qualities.
The market size is volume of business done in a particular area. This area is related to a
particular period of time. On basis of monthly, level of turnover in market, it can give
potential and power of market. If the market has demand, then investors can come and open
their brand and put their companies for manufacturing to sell the goods and services

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But if market size is not related to volumes demanded, the investment of company would be
failure. A very big brand and a very big manufacturing company, cannot operate in a rural
area with most of market being in urban areas. This analysis is done before trying to design
an investment strategy for any company.

Quantitative and Qualitative dimensions

 The quantities can be given in technical terms, like GW for power capacities
 Qualitative measuring mostly uses the sales turnover as an indicator.
 Market price and quantity are taken into account.
The maintenance of organic growth of company and brand power is needed to build
credibility of business for giving payment, having relations with quantitative dimensions. The
measure of power capacity and value of business does not reflects the total of quality of
business. It is essential to measure quality customers associated. There are various domains
and sectors of business market potential defined. The upper limit of total demand helps to
build potential clients taken into consideration for good values of orientation in relation to
market value and potential.

Market Potential
 Defines upper limit of total demand
 Takes potential clients into consideration.
 Offers good values of orientation
 Relation of market volume to market potential
 Provides information about the chances of market growth.
Market potential is the opportunity to build business in terms of volume and growth. The
products should be consumed in a particular segment and period of time. This gives
information of venture and to open the brand, which would connect with the customers.
Sources of Market Size
 Government data
 Traditional data
 Financial data from major players
 Customer surveys
The market sizes –The available websites, news and information which is being consumed in
market, is traditional data collected from investors. The people living in city market with
their financial data and major players receive their volumes and turnover, level of
investment, market service, demand in market and quantity used can help to build the
market analysis.

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Market Trends
Are the upward or downward movement of a market, during a period of time?
A few techniques are:
 customer analysis
 Choice modelling
 Competitor analysis,
 risk analysis
 product research
 Advertising the research
Trends - basically show ups and downs of product sales in market. It helps to see month
sales. It also helps to see when sales are down, according to level of seasonality in market.
The capacity of production could be shifted from one source to another source to balance the
cost. This involves analysis of competitor’s abilities and customer’s analysis to estimate as
what is demanded in market and how much has to be produced in relation to investment.
Changes in Market
 Changes in the market are important because they often are the source of new
opportunities and threats.
 Changes in economic, social, regulatory, legal, and political conditions and in
available technology, price sensitivity, demand for variety, and level of emphasis on
service and support.
Market has changed and this could be related to human perception of social, economic,
political and technological change. It could also be unchanged price. If price is lowered for
goods, it is better for customers to a buy and increase their consumption. If prices change to a
higher level, may be consumption patterns can change. The level and variety of demand
available helps customers to have better choice in the market and also to think in a better way
to buy products according to the budgets.

Market growth rate

 means of forecasting the market growth rate
 To extrapolate historical data into the future.
 Market growth rate sometimes can be predicted by constructing a product diffusion
curve.
Growth rate is change in volumes of sales over a period of time. Higher growth rate is
investment with effective product innovation. The diffusion curve shows as how after
maturity, the product can pick up in market. It is something new or innovativeness happening
within quality of product.

Reasons for declining in mature markets

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  Many markets mature and decline.
 Some leading indicators of a market's decline include
 Market saturation
 Emergence of substitute products
 Absence of growth drivers.
Sometimes, it happens that established and very good products also fade out from market.
This is because there are certain values, which do not match with customers in market. The
saturated market can change the scope for growth or sometimes people can use certain
product because some substance can high price in the market.
Market Opportunity
 A market opportunity for a product or a service, based on either one technology or
several, fulfills the needs of a (preferably increasing) market better than the
competition and better than substitution-technologies within the given environmental
frame (e.g. society, politics, legislation, etc.
The market opportunity for a product or service depends on the scope of expansion through
any change in technology. The property owners are doing well in market and it also depends
on patronage and encouragement given to some business people. This helps to give growth
for creating business options. The legal structure is a complicated and therefore compliances
are needed. People will stay away from these processes, as nobody wants more litigation and
it would increase also the cost of doing business.
Market Profitability
 While different organizations in a market will have different levels of profitability ,
 Attractiveness of an industry be studies through Porter five forces analysis
This model helps in the analysis of competition in the market but it depends upon, level of
specialisation of product, power of competitors in market and monopolistic conditions. The
cost of selling product is very less because any size created to be sold in market due to
competition and it is also a form of promotion. The product innovation needs knowledge
Porter’s five Force Include
The five forces influencing market profitability are
 Buyer Power
 Supplier power
 Barriers to entry
 Threat of substitute products
 Rivalry among firms in the industry
The Porter’s model is a standard in the area of competition, which relates to
 Direct competition of companies
 Substitute products which are coming in the market
 Barriers of entry

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  Supplier’s power
 Availability of material
 Ancillary industry support
The companies can do better but they are facing competition from the backward or forward
integration of channels. This helps to strengthen the competition in the market.
Industry Cost Structure
 The cost structure is helpful for formulating strategies
 Experience Curve Effect can be used to develop a cost advantage over competitors.
The cost structure is important to protect acceptance in the market. Higher is the ability of
company to connect with customers, higher is cost of getting customers. It is easy for
company because they already have previous level of client experience. The experience curve
can also help in reducing cost of the industry strategies.
Distribution Channels
 Trends and emerging channels - new channels can offer the opportunity to develop a
competitive advantage.
 Channel power structure - a product with brand equity can negotiate to capture more
margin.
The distribution channels play an important part to connect with customers. The distribution
channels can never go out of market, even if online sector is there. The good retail stores will
have convenience to have customers, who can touch and see the products. This channel is
important because people are required to connect at very pose locations. The channel power
of product depends on power of company. The product has a higher brand power. It can
negotiate with distribution channels to have higher margins for all turnovers to study success
factors. The access to essential unique resources and ability to achieve economies of scale in
the distribution channel is needed.

Success Factors
 Access to essential unique resources
 Ability to achieve economies of scale
 Access to distribution channels
 Technological progress
The success factors involve, not only the impact of environmental issues but also company's
ability to have built innovation and economies of scale to lower the cost. It is access to
distribution channel, with good technological supposed to have connections with customers.
Environmental Analysis
Environmental analysis - two parts
 External and internal factors.
 External Factors

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  External factors. Political issues, social potential force, and local economy called
external environmental factors.
The political, social and economic framework of society is important to give prosperity to the
customers.
Internal Environmental Factors
 company's internal position such
 as employees
 department structure
 budget and so forth
The education of employees can cultivate higher strength of the company. The structure has
to be strong in terms of depart mentation and networks. Higher connection through
technology can help to build analysis for investment strategies. The right strategies would
give an ability to build the power of economies of scales. The budget and investments can
help the companies to expand their businesses, where cost is lower. This can help to build
better connections with the customers.
Impact of government pollution
 The government limit pollution emission, they mention environmental taxes to
prevent company which produce pollution substance.
Higher is environmental taxation for companies, higher is the cost of product. The new
companies are not able to produce in market because there is a pressure of entry with more
litigation and higher cost of production. To work in balance with environment, issues
becomes problem to most of the operations. In most of the advanced countries, where
environmental taxation is higher, it restricts companies from those less developed countries,
where environment is still not an issue of concern. This is giving a growth option to business
to think in relation to environmental quality.
Competitive Analyses
 company must know their competitors
 The business can use like product cost, operational efficiency, brand recognition and
market
The power in any market is so competitive that this strength would help to build operational
efficiency to work on a cost advantage.
Dimensions of market analysis
 market size, market growth rate, market profitability, industry cost structure,
distribution channel, market trends, and key success factor,

Deep Dimensions of market analysis

 dimension of market analysis can be
 environmental analysis
 competitive analysis

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  target audience analysis
 SWOT analysis
 improve organization investment decision
The dimensions of market analysis relates to size, growth and other variables but deeper
aspect of analysis involves doing an accurate SWOT analysis in relation to environment. The
environmental threat opportunity profile has to be studied before designing any strategy
specific to industry and products.
Market analysis
 The market analysis is also reference for company's activity, like decisions of
inventory, purchase, work force, facility expansion and many aspects of company.
To design your own specific abilities to work in relations with the product dimensions of
the internal and external strength of the company target audience
Target audience analysis
 The group can be classified with location, age, gender, income, ethnicity, and
behaviors.
 Market can be classified in three types which are consumer market, industrial market,
and reseller market.
The audience analysis helps to connect with audience of particular age, education and size.
The local dimensions of living i.e. location is important, geographical area, level of
connection with the product, behaviour and culture would also put an impact. The markets
could be industrial markets or Consumer Markets. All markets require different kinds of
distribution channels or facilities to understand and work. The operation in global markets
have become differentiated on the basis of country and culture. The cross cultural approach
has its cultural stability of traditional values. The cultural stability has a wide range of shared
national cultural values in relation to features and to build group solidarity. It is an
interpersonal harmony to foster trust with the customers.

Global Market Segmentation

 Global market become.
 differentiate country and culture
 Cross-cultural approach has its cultural stability of traditional values.
 cultural stability has a wide range of shared national-cultural values features, due to
group solidarity, interpersonal harmony and so forth
The global market segmentation is a study of cross cultural issues of different countries in
relation to traditions and relations. The product acceptance depends on community behaviour
and norms of believing in their lifestyles of living. So the lifestyles could be a perception,
which is filtered on basis of income, attitude and education. The technological maturity
depends on issues which society is bringing up and on basis of that classification, the
companies try to design global brands and products, so as to be accepted in international
markets.

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  Summary
In this we have studied the concept and impact of market analysis on designing international
marketing strategies. The market analysis involves the study of basic dimensions of market
such size, growth, volume and key success factors. It is the study of trends and market
segmentation. It involves a detailed analysis of consumer classification. The market analysis
also involves a broad analysis of strength of companies to do sourcing and create an analysis
of environment in relation to opportunities and threats I hope, students must have understood
the concept of market analysis and its impact on international strategies.
Thank you status

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