Market Assessment:

               Market Assessment is the evaluation of the market for a product or a service, including the analysis of market trend assessing the competition and conducting market studies is known as a Market Assessment.

               Concept :The term Market Assessment concept holds that achieving organizational goals depends on knowing the needs and wants of target market and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors

               To penetrate an international market, the usual starting point is to undertake a market assessment which would assess market attractiveness and potential of the product by looking at the size, distribution channels, patterns growth/decline and trends. The assessment would also estimate product’s possible acceptance and level of appeal based on customer needs and survey competitive landscape by identifying the major players, their relative size and their product offerings. If the Market Assessment looked favorable, the company would invest more money and undertake Market Feasibility Study and/or develop a Marketing Plan.

               This is normally the first stage in investigating an export market. It is imperative to undertake a complete evaluation of the market under consideration. It is a quick overview of the market, a detailed understanding of the regulatory issues, market demand, competitive landscape, or technology prospects in a new business area. It also involves identifying market size. Ultimately, it will provide direction on whether or not additional resources, both money and people, should be committed to investigating the export market.

Why is Market Assessment Important?

1. The market assessment of your technology or service has an important role to play in the commercialization process.
2. Market assessment helps to validate the opportunity for a technology or service by determining the market you are operating in, its size and potential customers.
3. Market assessment provides project direction- you could be developing x but the market/customer wants x+1 or x-1. Through conducting market research and engaging with the market important information can be gained regarding market needs.
4. Market assessment helps to attract funding- by demonstrating the potential impact or value of your technology in a given market you are more likely to attract funding through government grants or investors.
For market Assessment, market segmentation is very important. Market segmentation is the basis for a differentiated market analysis. Differentiation is important. One main reason is the saturation of consumption, which exists due to the increasing competition in offered products. Consumers ask for more individual products and services and are better informed about the range of products than before. As a consequence, market segmentation is indispensable. Segmentation includes a lot of market research, since a lot of market knowledge is required to segment the market. Market research about market structures and processes must be done to define the “relevant market”. The relevant market is an integral part of the whole market, on which the company focuses its activities. To identify and classify the relevant market, a market classification or segmentation has to be done.

Dimensions of a market analysis:

  • Market size
  • Market Trend
  • Market growth rate
  • Market profitability
  • Industry cost structure
  • Distribution channels
  • Key success factors
  • The goal of a market analysis is to determine the attractiveness of a market, both now and in the future. Organizations evaluate the future attractiveness of a market by gaining an understanding of evolving opportunities and threats as they relate to that organization's own strengths and weaknesses.