What is Market Opportunity Assessment?
Market opportunity assessment identifies the growth opportunities available in the target market so that you can tailor your strategies to seize it. It involves estimation of current and future market size, analysis of market dynamics, competitive situation, customer needs and behaviour, and other relevant factors. By conducting a market opportunity assessment, you will be able to make better business decisions about product development, launch, and market entry. Any size company, whether it is a startup or corporation, can conduct market assessments to identify opportunities of where and how they can grow their business.
Identify growth opportunities
It helps identify potential areas of growth within their target market. By estimating market demand, analysing market dynamics, competition and customer behaviour, you can uncover untapped opportunities that align with their strengths and available resources.
Make better business decisions
Market opportunity assessment provides a foundation for strategic decision making. It helps you determine the attractiveness, viability, and potential profitability of pursuing specific market opportunities, guiding resource allocation and investment decisions.
Minimize potential risks
It provides insights to minimize risks associated with product development, market entry or any other marketing initiatives. By understanding market dynamics, customers and competition, you can mitigate potential challenges or threats.
Gain insights to develop marketing strategies
Through market opportunity assessment, you can gain a deeper understanding of who their target customers are, what they want, and how they make their purchase decisions. Besides that you can understand competitors and their strategies. All these insights will help you in developing products with compelling USP, price your product effectively, determine the best distribution channel and know which promotion strategies will work best.
Define the objective
Define the clear objective of market assessment, whether it is to evaluate the potential for a new product/service, assess market entry opportunities, or identify new market segments.
Gather data and information
Gather relevant data and information through primary research (surveys and interviews) and secondary research (industry reports and government statistics). For example, if your objective is to evaluate the market potential of a new product, gather data of revenue and units sold by all players in the target geographic market.
Analyze the data
Once you have gathered the required data and information, analyze it to calculate the market size (TAM, SAM, SOM) and the growth potential, understand market dynamics, the competitive environment, and to generate customer insights.
Evaluate and select opportunities
Based on your analysis, you need to evaluate and select the opportunities that exist in the market. This includes attractive or untapped segments, products that have high market potential, partnership and collaboration, and technological advancements.
Originally published at https://www.ikonmarket.com.
