Question

Explain the purpose of the market analysis section of a business plan.

Answer 1

Purpose of the market analysis section of a business plan: Market analysis a quantitative and qualitative assessment of a market. The market analysis breaks into segments for find out the target market.

1. The market analysis focuses on describing the firm’s target market, customers, competitors and values of the customers.
2. Market analysis is focus to explore the new business ideas with reliable data and market.
3. Market analysis is focus to find out the problems of entering the market.
4. Market analysis is helps to find out customer needs.

Market analysis process:

1. Create segmentation.
2. Target market
3. Market need
4. Competition analysis
5. Barrier to entry in market
6. Regulation