Market Evaluation

 Market evaluation is the process of research and

analysis of a specific market. This process
involves gathering quantitative and qualitative
data, such as the market size, statistics, average
prices in the target market, customers’ buying
habits, and more.
 The evaluated data is utilized to form
conclusions and forecast the success and
profitability of a business initiative at a specific
time and location. It can also help businesses
How to Conduct Market Evaluation

A marketing evaluation is a simple process, but it takes a

lot of dedicated research. Here, we will explore a step-by-
step guide to teach you how to evaluate your market.
Determine the current state of the market.
 The first section of your market analysis should include
an overview or description of the market in which you
want to operate. Take a look at some common factors
that you should analyze:
 Are there any current trends that affect the market?
 What is the growth rate of the market?
 What is the lifecycle of products and services in the
market?
Analyze your target customer.

 Analyzing your target audience is the next step of

market evaluation. No matter how great your product is,
you can not sell it to everyone. It would be a huge waste
of time to try. Thus, the best strategy is to target your
niche market, which will most likely buy your product.
 You will need to define your segmentation strategy to
help you find people in your target audience. Target
segments enable you to segment your audience based on
groups of shared characteristics, such as:
 Demographics: Age, gender, occupation,
level of education, and religion
 Geographics: Where your target customer
lives and works
 Psychographics: What your customers are
interested in, what they are passionate
about, or what personal values they are
likely to have.
Analyze your competitors.
 Another vital part of the market is your competitors. It’s
very rare to find a market need that is not already being
met by a business.
 In this step of market evaluation, you will need to
research the companies with whom you will be
competing for customers. The following are some of the
key topics you should cover:
 Market share of your competitors
 Their strengths and weaknesses
 After you have done research on each competitor, it can
be helpful to rank them from most dangerous to least
dangerous to your business.
Set up financial projections

 In this part, you will attempt to evaluate your company’s

income potential. You should include the following
numbers:
 Potential market share: Explain how your sales and
marketing efforts will help you get the market share or
valuation you want.
 Cash flow: How much loss you will expect at the start,
when you will break even, and when you will make a
profit.
 Pricing and gross margin: What your products will
cost versus what it will cost you to manufacture or
source products for online sales.
Understand industry regulations

 The last topic that needs in market evaluation is

whether you need to follow any industry
regulations.
 For example, if you sell skincare products, you
will need to check the rules about skincare in the
country where you do business. Another example
could be that you need a license to sell a certain
kind of product, like medicines.
Conclusion

 Conducting a market evaluation is an important

step in developing your business. It’s one of the
first things you will do when you start making
your business ideas come true.
MARKETING ENVIRONMENT
 A marketing environment encompasses all the
internal and external factors that drive and
influence an organization's marketing activities.
 Marketing managers must stay aware of the
marketing environment to maintain success and
tackle any threats or opportunities that may
affect their work.
Why is a marketing environment important?

A marketing environment is vast and

diverse, consisting of controllable and
uncontrollable factors.
Identify opportunities:
Identify threats:
Manage changes:
Features of a marketing environment

 The features of a marketing environment are

typically:
 Dynamic: The factors that affect marketing
environments constantly change over time.
These could be technological advancements,
industry regulations, or even customer tastes.
 Relative: Marketing environments are relative
and unique to each organization. A specific
product from your company may sell quicker in
the U.S. than in Europe because of distinctions in
the marketing environment.
 Uncertain: Market forces are unpredictable. Even
with constant study, you may face unexpected
threats or opportunities in your marketing
operations. Adept marketers must be able to
learn, pivot, and strategize quickly to achieve
their goals.
 Complex: The many internal and external forces
in a marketing environment make it complex,
with various essential moving parts. For example,
you must coordinate your team’s ability and
resources with stakeholder expectations,
customer satisfaction, and other ethical and
environmental concerns.
Customer value
 Customer value is best defined as how
much a product or service is worth to a
customer. Here’s how companies can
enhance their value to improve the
customer experience and increase
satisfaction.
 Today’s consumers don’t care only about price or
quality. They also want the product or service
they buy to solve a problem or need. With tons
of shopping options at their fingertips, buyers are
looking for companies that consistently deliver
 Why is customer value important?
 Delivering customer value is key to maintaining long-term relationships
with existing customers and earning repeat business. It’s an important
part of meeting customers’ needs and expectations and learning how
they change over time. Knowing how customers feel about your product
and the service experience you offer is key to building customer loyalty
and increasing customer lifetime value.
 Quality service can add customer value. According to Zendesk’s 2022
Customer Experience Trends Report:
 93 percent of customers will spend more with companies that offer
their preferred option to reach customer service.
 90 percent of customers will spend more with companies that
personalize the customer service they offer them.
 64 percent of business leaders say that customer service has a positive
impact on their company’s growth.
 60 percent of business leaders say it improves customer retention
 47 percent of business leaders report an increase in their ability to
cross-sell due to good customer service.
How is customer value created?
 Customer value isn’t only about money. It’s
typically created through the solution that a
product or service provides, not only to the buyer
but to their organization as well. Keep in mind
that customer value is subjective. Price is
universal—it will cost every customer the same
amount to purchase your product or service. But
the value will be different for every buyer
because it involves so many variables, including
customer experience.
What is customer relationship management?

 Customer relationship management (CRM)

refers to the strategies, processes, and
technologies used to build and maintain
relationships with customers.
 Customer relationship management (CRM)
refers to the principles, practices, and guidelines
that an organization follows when interacting
with its customers.
Types of CRM

 Today, many comprehensive CRM platforms integrate all parts of

the customer relationship the business may have. However, some
CRMs are still designed to target a specific aspect of it:
 Sales CRM: to drive sales and increase the pipeline of new
customers and prospects. Emphasis is placed on the sales cycle
from tracking leads to closing deals.
 Marketing CRM: to build, automate, and track marketing
campaigns (especially online or via email), including identifying
targeted customer segments. These CRMs provide real-time
statistics and can use A/B testing to optimize strategies.
 Service CRM: integrated dedicated customer service support
with sales and marketing. Often features multiple contact points
including responsive online chat, mobile, email, and social
media.
 Collaborative CRM: encourages the sharing of customer data
across business segments and among teams to improve efficiency
and communication and work seamlessly together.
 Small Business CRM: optimized for smaller businesses with
fewer customers to give those customers the best possible
experience. These systems are often much simpler, intuitive, and
less expensive to implement than enterprise CRM.