Page 106 - DMGT521_PROJECT_MANAGEMENT

Unit 7: Market and Demand Analysis

(b) Position: An analysis on the Marketing strategy and the Marketing mix. Notes
(c) Performance: An analysis on how effectively the business is achieving their stated
mission and goals.

(d) Product line: An analysis on the products manufactured by the business and how
successful it will be in the market.
2. Competitors: The competitor analysis takes into consideration the competitors position
within the industry and the potential threat it may pose to other businesses. The main
purpose of the competitor analysis is for businesses to analyze both the current and
potential nature and capabilities of a competitor in order to be prepared against
competition. The competitor analysis looks at the following criterias:

(a) Identity competitors: Businesses must be able to identify competitors within their
industry. Identification of whether competitors provide the same service/products
to the same customer base will be useful is gaining knowledge on direct competitors.
Both direct and indirect competitors must be identified, as well as potential
competitors that may enter the market.
(b) Assessment of competitors: The competitor analysis looks at competitor goals, mission,
strategies and resources. This will allow for a thorough comparison on the goals
and strategies of both competitors and organization.
(c) Predict future initiatives of competitors: An early insight into the potential activity of a
competitor will help a company be prepared against competition.
3. Customers: Customer analysis can be vast and complicated. Some of the important areas
that a company analyzes includes:

(a) Demographics
(b) Advertising most suitable for the demographic
(c) Market size and potential growth
(d) Customer wants and needs

(e) Motivation to buy the product
(f) Distribution channels (online, retail, wholesale, etc.)
(g) Quantity and frequency of purchase
(h) Income level of customer

4. Collaborators: Collaborators are useful for businesses as they allow for an increase in the
creation of ideas, as well as an increase in the likelihood of gaining more business
opportunities. The following type of collaborators are:
(a) Agencies: Agencies are the middlemen of the business world. When businesses need
a specific worker who specializes in the trade, they go to a recruitment agency.

(b) Suppliers: Suppliers provide raw materials that are required to build products. There
are 7 different types of Suppliers: Manufacturers, wholesalers, merchants, franchisors,
importers and exporters, independent crafts people and drop shippers. Each category
of suppliers can bring a different skill and experience to the company.
(c) Distributors: Distributors are important as they are the ‘holding areas for inventory’.
Distributors can help manage manufacturer relationships as well as handle vendor
relationships.

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