What does market analysis focus on?

Market analysis primarily focuses on understanding the size, location, and character of markets. This includes evaluating the overall potential of a market, identifying target demographics, and assessing the geographic areas where a product or service can be effectively marketed. By examining these factors, businesses can determine the feasibility of entering a market, the best strategies for capturing market share, and the resources needed to compete effectively.

This approach allows companies to make informed decisions about product development, distribution channels, and marketing strategies. It is essential for creating a solid foundation upon which to build marketing plans and strategic initiatives.

While consumer preferences and attitudes are vital elements in understanding the market, they typically fall under broader market research rather than the specific parameters of market analysis itself. Analyzing sales figures and forecasts is important for tracking performance and predicting future trends but does not encompass the foundational aspects that market analysis aims to address. Similarly, SWOT analysis results provide insights into an organization's strengths, weaknesses, opportunities, and threats but do not specifically focus on the structural attributes of the market itself.