Lesson 1.4 Glossary. Market analytics
Market analytics or audit – obtaining various parametric data aimed at drawing up a target conclusion
Market analysis allows a business to determine what is best to sell, through which channels and for which target audience, in order to start earning money faster. The study is usually conducted before launching a product. But sometimes it is also conducted for an existing business that wants to get out of a crisis or increase revenue.
To understand market analysis in digital terms, you need to take into account the key point:
We are talking only about digital channels of communication with customers. So a digital market audit cannot be used as a final audit for a company that has other channels for distributing goods. It is always based on numbers.
Let’s move on to the terminology that is used during market analytics, as well as for obtaining various data:
- Product research – forming an understanding of the presented goods or services, product groups, as well as their key characteristics and prices.
- USP – unique selling proposition. At the audit stage, this is a conclusion about what the final offer of your product looks like and what advantages it has for a potential consumer.
- Consumer portrait – defines the ideal consumer, for whom marketing campaigns are subsequently adjusted.
- Shopping basket – defines popular and unpopular products
- Pareto rules – 20% of the product account for 80% of the turnover.
- Target audience (TA) – is used both to define the portrait of an already formed audience and to define potential audiences, for example: Facebook users aged 23 to 25 with certain interests; Google search engine users who searched for the query “buy sushi”
- Segment – part of the general data that makes up something larger, such as an audience. That is, the Facebook potential audience can be segmented into several smaller audiences by age, gender or other characteristic. They will be called segments.
- Niche – a place in the entire market that a product or service wants to occupy. You can enter and take a share in an existing niche, or form your own. In fact, this is one of the reference points in the phase development of a business, which can serve as the final goal at a certain stage of the company’s development.
- Competitor – in digital marketing, competitors are not only companies that are represented in the same niche, but also companies that buy traffic and compete for identical audience segments, while not providing a product or service identical to yours. The most striking example is sellers of clothing and accessories. Sellers of accessories very often advertise their product to people who are interested in clothing. Well, or advertising an expensive yacht for a person who is looking for broker-investor services and vice versa.
- Traffic channels – sources of traffic to your site, social network and other points of contact with the client. For example, Google search, Facebook group, advertising on Instagram and others. 11. Potential market size is the sum of all potential clients included in all potential audiences.
- Market potential is the potential sales volume of a product or service in the potential market size
- SWOT analysis is four aspects of a company’s work in the market. The abbreviation stands for: Strengths. Weakness. Opportunities. Threats.
This analysis reflects research into the company’s strengths and weaknesses, potential opportunities and threats. It is studied and a strategy for the company’s behavior in the market is selected. - PEST analysis. Similar to SWOT analysis, but considers only the external environment. This analysis shows what political, economic, social and technological factors influence the company’s work. The abbreviation PEST stands for: Political – political factors. Economic – economic factors. Social – social factors. Technological – technological factors.
In order for you to be able to conduct a market audit or analytics that would allow you to improve your positions in the market, such terminology is sufficient. I will probably add a few more terms while writing the article itself on how to conduct market analytics, but this will be a little later.
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