The market opportunity is really important for any business. When you are offering certain products or services, the first thing you should do is analyze the market. Whether the market demands your products or services or not. You also need to think of the type of market that you want to target.
It plays a huge role in business growth and in analyzing the market potential. For a better understanding of the market opportunity, we first need to know the market opportunity definition. So, let’s start with this.
What Is a Marketing Opportunity?
A marketing opportunity is considered as a sales-accepted lead, which has been officially recognized as being in need of your services or products. Here a sales representative checks that there is an option to sell to this company or to an individual. Generally, the sales representative has to determine whether the prospect has the need, Budget, authority to buy your company’s product or not.
The Type Of Opportunity
It is important to know what opportunities market opportunity brings with it. Here are they,
- An unfulfilled customer need.
- Disruptive technology or idea.
- An enhancement of the service or product that is already in the market.
- A targeted opportunity to a specific segment of the industry.
- Horizontal improvements for improving functional operations.
The Role Of Marketing Opportunity
For any B2B organization, marketing opportunity creation is one of the critical bottom-of-funnel metrics. The equation is quite simple here. The more opportunities will be driven by your organization, the more chances of closing sales, and customers will also be more.
Do you know what is more down-funnel than a normal lead or a sales-accepted lead? It is indeed a market opportunity slide. You will know their problem. You also know that you are capable of providing them a solution. You also need to know that whether they are capable of purchasing your product and solution or not.
What Is Market Opportunity Analysis?
Market opportunity analysis is basically a tool that is used to identify and get the attractiveness of any business opportunity. It is considered a part of the business strategy or planning process. In this process, the probable revenue or profit is being determined by analyzing the market before undertaking a new service or product. The forecasted demand of the service or product is one of the most vital factors of business opportunity analysis.
Here is the list of questions that one can answer through market opportunity analysis.
- What is the most profitable market slide?
- What is the opportunity growth rate?
- What is the result of competitor and gap analysis?
- What are the differential points that are responsible for key sustainability?
- How to enter the market?
- What should be the key value proposition?
Five Steps To Analyze Marketing Opportunity Analysis In 2021
Here are the five steps that will help you to analyze the market opportunity analysis in 2021.
1. Recognize The Business Environmental Forces
While going for market opportunity analysis, one of the most crucial things that you need to work for is recognizing the business environmental forces. And without any doubt, it is not that easy to do. There are several factors that regulate the business environmental forces.
- The conditions and trends of the economy.
- Regulatory and legal situations and trends.
- Relevant social changes.
- Technological positioning and trends(related R&D, state of the art).
- Natural environment.
2. Describing The Industry Along With Its Outlook
Once you complete the task of recognizing business environmental forces, it is time to start describing the industry and its outlook as well. Just like the business environmental forces for market opportunity, this business segment also depends on some crucial factors.
- The type of industry.
- The size of the industry at the current time and in 3 to 5 years.
- Major trends.
- Types of marketing practices.
- Implications for the opportunity.
3. Analyze The Major Competitors
When we are analyzing the market opportunity analysis, how can we do not include analyzing our competitors? This is something that can not be skipped at any cost. Knowing your competitors are considered as one of the most vital for any type or any size of business. Here are the factors that we need to consider for this job.
- Market positioning (relative weaknesses and strengths, from the customers’ point of view).
- Product description.
- Market practices, such as pricing, channels, promotion, service.
- Estimated market share, only if that is relevant.
- Reactions to the competition.
4. Develop A Target Market Profile
If you are going in the right direction, you may have done the analyzing or the testing part. And the time of developing a market profile has come. Before you step fully into the market, you need to develop a market profile with some impressive key features. In order to do this, you need to consider the following factors. A market opportunity results from all these.
- End-user focus.
- Targeted customer profile.
- Recognizing the potential customers.
- Levels, like product type, generic need, specific brands.
- The preferred business of the customers.
- The decision-making process of the customers.
- Importance of the different types of product attributes.
- The influential forces of buying decisions.
5. Set Sales Projections
This is the ultimate step. Now you are entering the market and setting sales projections. This step includes as many intuitive and formal approaches as possible. These are vital for determining what would be used. Your job does not end here. You are also required to compare the obtained results with each other. And finally, you will take the decision for product or service that which one will go and which will not.
The basic factors that you need to consider are as followed.
- Different intuitive and formal approaches.
- Determining which ones to use.
- Comparing the results.
- Finally, selection some potentials.
So, now you know how crucial market opportunity is for any business type and business size. You also need to keep one thing in mind that along with checking the market opportunities, you also need to analyze the market opportunity analysis at the same time. What is most important is doing all these tasks in a proper and technical way. I am sure the steps that are mentioned earlier will definitely guide you to achieve your targets.