Step 2: Study the Basic Market Data

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Step 1: Set a Goal
The first step is to clearly define what you want to learn from market analysis. Make a list of questions you are looking for answers to. For example:

Analyze the demand for certain products.
Explore price categories.
Determine the nature of consumers and their expectations.
Identify bottlenecks in the niche.
Study your competitors.
The next step is to collect and evaluate the necessary data. You need to collect market data for the last 5 years. This will allow you to get a complete picture of the current state and trends. First of all, pay attention to four indicators.

Market capacity
Market capacity shows the maximum possible number of products that can be sold ecuador phone number list in a given period. This indicator can be estimated using the following formula:


This calculation helps to evaluate the selected market segment, analyze sales and predict possible income.

Market size
This indicator reflects how much product was actually sold during the specified period.

Let's say a smartphone manufacturer sold only 200,000 units out of a potential 2 million. The company's executives analyzed sales volumes. The study found that poor advertising and high prices were holding back demand. So the company revised its marketing strategy and lowered prices. These changes led to increased sales in subsequent quarters.

Market size research allows you to understand how effective your current marketing strategies are and which products or services are most in demand among consumers.