How to analyze the market potential

Unfortunately, due to the lack of understanding of marketing, some market research companies can't provide guidance and help to customers from the perspective of marketing. In the end, they simply do market research according to customers' understanding and requirements, and analyze the market with "scientific methods" under the guidance of wrong marketing strategies. The results of the study will definitely greatly reduce the market guidance to customers. (market potential analysis) 1. Not long ago, there was a case about wedding market analysis. When we make a city's wedding market potential, according to the general market analysis method, we will estimate the total demand of the whole city's wedding market by combining the number of young people in the whole city, the average number of weddings every year and the average total cost of each wedding. In this way, the data is huge, billions a year. Actually, it's not. If you carefully observe the product chain of the wedding market, you will find that the product chain of the wedding market is extremely broad. From wedding planning, wedding rental, car rental, photo album, live camera to hotels, gifts, wedding ceremonies and other fields, no company can provide all the services, and no customer is willing to hand them over to a company, because a wedding is like a lady shopping, and the picture is the fun of that process. As we all know, the whole market of a product can be subdivided because of the different needs of consumers or users. There are many variables that cause the difference in consumer demand. In practice, enterprises generally use related variables to segment the market, rather than using a single variable. To sum up, there are four variables in subdividing the consumer market, namely, geographical variables, demographic variables, psychological variables and behavioral variables. Based on these variables, market segmentation has produced four basic forms of market segmentation: geographical segmentation, demographic segmentation, psychological segmentation and behavioral segmentation. (market potential analysis) 2. Accurately collecting data, such as GDP, can basically show the development level of a region, but it can't show the living standards of people in this region, while per capita savings and per capita disposable income can show the purchasing power of residents in this region, and other data can be used for reference. Analysis of market potential can only be based on the target products and target customer groups to collect different data as a reference. In the process of marketing consultation, we often find that the market research that customers know better is the research on the consumer market, so they often ask how many consumer questionnaires are needed to determine the market potential. In fact, sometimes, the basic purchasing power of this region can be roughly understood by industry research without too precise data. (Analysis of market potential) I helped him to consider a way: as long as the following data are collected and improved, we can basically confirm the general distribution of sales potential in the whole country, including the development data of secondary industry in cities across the country, the number of large and medium-sized enterprises with annual sales of 5 million yuan by urban distribution, and the academic qualifications of national entrepreneurs or senior managers by urban basic distribution. These data can be directly obtained from national statistical data (statistical caliber varies in individual regions, and market potential analysis). It must also be noted that macro analysis must not be ignored in any market analysis. It can be exaggerated to say that macro analysis and industry analysis are the premise of all market analysis. I remember that when the price competition in the color TV industry was extremely fierce, some experts focused on analyzing the reasons such as product homogeneity and innovation. Do you know that the reason for the competition in the color TV industry is that the market is saturated and the supply exceeds demand, which will inevitably lead to such a feature? However, industry analysis is often the most difficult research aspect in the whole market research field. Many people think that as long as we have a simple perceptual knowledge and look at the information on the Internet, it is a macro-environmental analysis. Actually, that's not the case at all. Industry environment is often the basis of whether an enterprise can finally win, but there are too many factors involved, and the research of analysis model also needs the support of a large number of basic data. Many consulting companies are also retreating to do more standardized and operational consumer research fields. (market potential analysis) 3. High-quality data When doing market capacity analysis, some enterprises often unconsciously raise the expectation of market potential because of their enthusiasm for this project, which is obviously much higher than the implementation in some estimated data. The reason is often that they are deliberately raised according to their personal feelings or should be. The result is, of course, huge potential, strong demand and high return on investment. There used to be a customer who made hotel washing products. When calculating the market potential of a single city, according to the usual market forecasting method, the usage is calculated by using the data such as the number of rooms in a single hotel, the occupancy rate of rooms in a single hotel, and the average number of rooms in all hotels in the city. In this process, the customer occupancy rate is often artificially increased or completely ignored. Subconsciously it is 100%. In fact, in normal times, the occupancy rate is very low, so the whole data will be high. If the hotel occupancy rate is determined by the marketing of washing products, then such a prediction has certain basis, but it is often not, so we can only analyze the data according to an objective attitude. (Market Potential Analysis) In the process of market research, the most important point is quality control. Why quality control is needed is because there are human factors in the data collected in the process of market research. This man-made factor means that when it is big, it will be big, and when it is small, it will be small. If the data of a single sample is too large and the sample becomes larger, the whole result will completely deviate from the truth of the market, and the purpose of quality control is to enable researchers to objectively estimate the true value of the market, thus giving market strategies. Since the situation remains the same, it is necessary to objectively analyze the market. If the marketing decision is based on a false market data, we must question the correctness of marketing. (market potential analysis) 4. Avoid pure data analysis. Pure data analysis is to predict data only from data. On the surface, it is very scientific. Many market researchers are eager for the correctness of the data, and then predict the future market potential according to the well-known analysis methods such as least square method, factor analysis and cluster analysis. Such a forecasting method can often win the trust of customers. Actually, it's all wet. If the future can only be analyzed by data, in 2002, in our view, it is meaningless to predict data purely by data. The market is changeable and irregular. For some traditional industries with a high degree of marketization, such as catering and clothing, because the market demand has basically balanced supply and demand, big market innovations no longer appear. It is feasible to make simple predictions with data in such a market. For some industries, such as enterprises, some machinery industries, real estate, IT or a completely new industry, these industries are either not fully market-oriented, or have huge opportunities for change, or there is no balance between supply and demand. In the final analysis, there are still huge market opportunities in these industries, and the pattern of the whole industry may be completely subverted one night. At this time, if we only use data to predict data, we will be laughed at. Many researchers will think that qualitative research is much more difficult than quantitative research, because qualitative research contains too many uncertain factors. Only when we fully understand the development process of the industry, understand the industrial chain status of the industry, understand the opportunities and prospects of the industry, and combine the current market situation to make a more reasonable forecast of the future market. This prediction is more scientific than simple data prediction. (Market potential analysis) The above points are easy to understand, but they are common mistakes made by many market analysts. Only by paying attention to every detail can we make an objective analysis of the current market potential, and then marketing decisions will not be passive water.