A market analysis studies the attractiveness and the dynamics of a special market within a special industry. It is part of the industry analysis and thus in turn of the global environmental analysis.
A market analysis studies the attractiveness and the dynamics of a special market within a special industry. It is part of the industry analysis and thus in turn of the global environmental analysis. Through all of these analyses, the strengths, weaknesses, opportunities and threats (SWOT) of a company can be identified. Finally, with the help of a SWOT analysis, adequate business strategies of a company will be defined. The market analysis is also known as a documented investigation of a market that is used to 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.
Why marketing analytics is important?
Over the years, as businesses expanded into new marketing categories, new technologies were adopted to support them. Because each new technology was typically deployed in isolation, the result was a hodgepodge of disconnected data environments.
Consequently, marketers often make decisions based on data from individual channels (digital marketing and website metrics, for example), not taking into account the entire marketing picture. Social media data alone is not enough. Web analytics data alone is not enough. And tools that look at just a snapshot in time for a single channel are woefully inadequate. Marketing analytics, by contrast, considers all marketing efforts across all channels over a span of time – which is essential for sound decision making and effective, efficient program execution.
What you can do with marketing analytics
With marketing analytics, you can answer questions like these:
- How are our marketing initiatives performing today? How about in the long run? What can we do to improve them?
- How do our marketing activities compare with our competitors’? Where are they spending their time and money? Are they using channels that we aren’t using?
- What should we do next? Are our marketing resources properly allocated? Are we devoting time and money to the right channels? How should we prioritize our investments for next year?
Three steps to marketing analytics success
To reap the greatest rewards from marketing analytics, follow these three steps:
1. Use a balanced assortment of analytic techniques.
2. Assess your analytic capabilities, and fill in the gaps.
3. Act on what you learn.
Use a balanced assortment of analytic techniques
To get the most benefit from marketing analytics, you need an analytic assortment that is balanced – that is, one that combines techniques for:
- Reporting on the past. By using marketing analytics to report on the past, you can answer such questions as: Which campaign elements generated the most revenue last quarter? How did email campaign A perform against direct mail campaign B? How many leads did we generate from blog post C versus social media campaign D?
- Analyzing the present. Marketing analytics enables you to determine how your marketing initiatives are performing right now by answering questions like: How are our customers engaging with us? Which channels do our most profitable customers prefer? Who is talking about our brand on social media sites, and what are they saying?
- Predicting and/or influencing the future. Marketing analytics can also deliver data-driven predictions that you can use to influence the future by answering such questions as: How can we turn short-term wins into loyalty and ongoing engagement? How will adding 10 more sales people in under-performing regions affect revenue? Which cities should we target next using our current portfolio?
Act on what you learn
There is absolutely no real value in all the information marketing analytics can give you – unless you act on it. In a constant process of testing and learning, marketing analytics enables you to improve your overall marketing program performance by, for example:
Identifying channel deficiencies.
Adjusting strategies and tactics as needed.
Gaining customer insight.
Without the ability to test and evaluate the success of your marketing programs, you would have no idea what was working and what wasn’t, when or if things needed to change, or how. By the same token, if you use marketing analytics to evaluate success, but you do nothing with that insight, then what is the point?
Applied holistically, marketing analytics allows for better, more successful marketing by enabling you to close the loop as it relates to your marketing efforts and investments. For example, marketing analytics can lead to better supply and demand planning, price optimization, as well as robust lead nurturing and management, all of which leads to more revenue and greater profitability. By more effectively managing leads and being able to tie those leads to sales – which is known as closed-loop marketing analytics – you can see which specific marketing initiatives are contributing to your bottom line.