Understanding your market

  • Size of your market : You can get an idea about the size of the market by availing of industry reports and research. Trade associations can also provide information. The size of the market helps you to decide what share of the total market you want to capture.
  • Market performance – growth or degrowth, the rate at which it is growing. Sometime the growth can slow down or it could stop. If the product has been launched for the first time, then the market is new. For eg, when mobile phones were launched for the first time, the market was new and in its infancy. Today, the mobile phone market in India is growing. There are a number of players and more coming in. Very soon, the market will mature.
  • PESTLE – political, economic, social, technological, legal and environmental factors that affect the market. For eg, a new law or new technology that can cause disruption. For eg, when desk top computers came and disrupted typewriters. It is also very important to know seasonality and buying trends.
  • Players – who are the players, their strengths and weaknesses, their size and financial strength. This gives an idea of your competitors and how where you stand amongst them.
  • Customers or target market – make a list of your target markets and segments. Make a note of the number of units sold or the amount of revenue that each segment is contributing over the last two financial years. This small exercise gives you an idea as to which segment is contributing most to your sales.

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