But after all, what is a market analysis?
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What is customer acquisition?
First of all, we need to understand what customer acquisition is. It consists of finding methods and data to more effectively and accurately reach qualified customers who will consume your product. In addition, it aims to know your positioning as a business in the market in which you operate.
Therefore, it is basically based on finding out how your company impacts the market and how the market feels about it . Not only by increasing the loyalty of current customers, but also by winning new customers to consume your product and/or services.
What is market analysis?
Market analysis consists of obtaining the information necessary to capture customers who will add the most value to your business, as well as a holistic analysis of the market in which your company operates.
This happens because, from the moment you discover your target audience, your differential compared to your competitors and the product-consumer relationship, you can adapt to best meet the needs of your ideal customer.
Customer acquisition and its connection with market analysis
But what is its relationship with customer acquisition?
Starting from the premise of the meaning of customer acquisition, let's imagine a scenario: you, as an entrepreneur, are looking to start your business, but you don't know very well the following aspects.
How will the market you are seeking to operate in react?
Which prospecting is more efficient: active or passive?
Whether or not you have a strategic advantage in the market you operate in
Your differential in the market.
As a result of these challenges, starting your business becomes very complicated, since you may encounter numerous obstacles throughout the process simply due to a lack of market analysis. Furthermore, you end up not knowing how to capture customers correctly, as you do not know which target audience will really be interested and engage with your product.
To better understand its importance, here is a hypothetical case study on how market analysis is essential.
Hypothetical case on the importance of market analysis
Let's use the image of an air conditioning salesman who is in the process of going bankrupt because he is unable to establish himself and sell effectively in a specific location. There may be several hypotheses as to why his business is failing.
Firstly, the seller is selling in a naturally cold city, therefore, given the customer's consumption habits, the purchase of an air conditioner does not appear to be necessary, as his house does not require this service (it is already naturally cold).
There is also the possibility that the entrepreneur seeks to establish himself in a small town where there is already a single store that sells them and is already established and recognized by the residents. In this way, his presence in the market becomes insufficient and even unnecessary to compete with the competition.
There are also countless other hypotheses that could hinder the entrepreneur. Therefore, it is necessary that you, as an entrepreneur, know your business in its entirety: its weaknesses, strengths, opportunities, and threats (SWOT analysis) before anything else.
Download a free e-book here to perform a SWOT analysis of your company
Given the above, it becomes clear that a market analysis is ideal for any entrepreneur seeking to have an efficient business that can break down market barriers and attract and retain customers. Studying your business and market is the only way to truly understand who your right customers are and attract more and more of them.
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But what are the questions that are really necessary to understand these aspects?
Necessary questions
In order to really capture the ideal customer base, it is necessary to use some targeted questions for market analysis. These questions can be used in a form sent to your desired target audience. This way, you can find out a little more about their customs, habits, needs and the view they have of your product. Also, demographic data such as age and social class.
The question is: what is the gender, age, and family income of the person being questioned? After discovering these basic aspects, it becomes necessary to find out:
How urgent is your target audience to purchase your product?
How much would you spend for the product?
Who participates in the purchase? (Employee to boss, father to sons, another businessman to his own business)
Which of your competitors do respondents prefer?
How did they hear about your company?
There are many more questions that can be asked to understand the needs of your target audience and your presence in the market. It always depends on what you want to understand and take away from the market analysis, and how you want to capture new customers.
Market analysis and customer acquisition
In short, it becomes clear that for any entrepreneur, market analysis is essential to actually attract customers and develop effective marketing strategies. Given that, there is little point in reaching all niches if you are only going to sell to a specific one.
This search may seem like a good thing at first, but it soon turns out to be ineffective and generates large expenses for your company instead of commercial success. The most consistent sales are those that reach the right customer, who may become loyal and add value to your brand in the future.
Therefore, market analysis is necessary for any entrepreneur, as it combines the forces of marketing and finance to effectively make your company the best in the market.
