Internet Market Analysis

Conducting Internet market analysis is essential for both new internet business and also to existing business who wants to have an online presence. Internet market analysis should be conducted after finalizing the Internet business model.

The basic idea behind this analysis is to know the market opportunity, target audience needs relating to the opportunity, marketing strategies (ideas to fill the needs), understanding competition in the market.

In general, market analysis helps businesses in many ways. It minimizes business risks, create sales opportunity, recognize problems in the market, etc.

How to conduct internet market analysis?

Part 1:
Analysis of the product or service demand – Analyzing the product or service demand starts with keyword research.

Keywords are nothing but a phrase used in the search engine by the searchers to find product or services.

Keyword research is a process of finding the demand and supply of product/services in the internet world.

Steps to conduct Demand Analysis through keyword research

Step1 – List down possible keywords for your products or services. For example, if you want to sell food and accessories for cat. Try the following keywords.

Cat Food, Cat accessories, Cat side dishes (you can narrow down or specify keyword based on your niche)

After making a list of keywords, analyze the online market demand and supply

Step2 – Go to Free Word tracker Tool or Nichebot type your keyword to see the demand and the supply. Demand (count) is nothing but the number times that particular keyword was searched to find the product or to find the information of that product (gathering information on the product is a process of buying). Supply (popularity) is the number of web pages containing that keyword.

Step 3 – After identifying and analyzing the list of keywords a further general analysis is required to understand the whole demand and supply for your products/services.

Part 2:
Understand the Industry Trends and Size – After having done the initial demand analysis it is imperative to understand the whole market/industry. There are various research firms specializing in various industry segments like forrester.com, marketresearch.com, etc gives comprehensive information. It might be a difficult to task to know about the entire industry unless you have money to buy their reports, but they give few free reports and nuggets on industry trends and strategies which is of great help to take a big business decisions for small business owners.

Part 3:
Identify who are your competitors – Identifying competitors should not be neglected. It helps you to understand how they behave in the market, what product benefits do they offer, what are their pricing strategies. Conduct a competitor analysis to understand the hook and corner of their business strategies (both offline and online). At this stage it is recommended to just know who the competitors are. Systematic plan should be prepared to conduct competitor intelligence in the later stage.

Make a special report on your internet market analysis for further business plan.

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