When you want to start a tow truck business, the first thing you would need to figure out is coming up with a market opportunity analysis. Market opportunity analysis refers to the process of researching where and how you can reach more potential clients and grow your revenue share. It involves identifying competitions, understanding your audience and uncovering all potential risks. By doing a marketing opportunity analysis, you will be better placed to prioritize new business ideas, based on how potentially profitable and risky they are. It is very important that you conduct a market opportunity analysis.
Performing this kind of analysis can help you grow your existing business, and pivot into new markets and opportunities as well as expanding your current market. Here are some notable benefits of marketing opportunity analysis.
Make better long term strategic decisions
Your business is impacted by many external factors. Without making the time to examine the current marketing trends, you will be left blinded. A marketing opportunity analysis can provide the insight you need to see into the future. What will the market look like in about five years or ten years from now? What forces are acting on the market today? Are we experiencing any shifts in terms of demographics? All these questions will be useful in helping you make better long term strategic decisions.
Evaluate product and service demand
You need to have a great product that your target market will love. This means you start by doing a market assessment to show you the potential for selling your products and services. This analysis will be very important in showing you the potential for selling your products and services and evaluating if expanding into potential new markets will be worth for your company. You may find there are no existing market for your idea and this leads to a blue ocean strategy. In blue oceans, demand is created rather than fought over. There will be a lot of opportunity for growth that is both profitable and rapid.
Identify potential marketing strategies
The four Ps of marketing revolve around price, place, product and promotion. Throughout the process of market opportunity analysis, organizations stand to gain a deeper understanding of who their target customers are, what they want and how they make their decisions. After carrying out an assessment on your current market, you will be able to price your products more effectively and know which promotional strategies work best. Are there key partnerships that you should pursue? What key strategies do you need to include in place to create the best synergies?
Uncover areas for further research
When you start to have a better understanding of your market, you may identify even more new opportunities that need to be explored. You may discover new initiatives that encourages more sustainable businesses. A customer research project may identify new pain points that you never knew they existed. The benefit of having a better understanding of your marketplace is that you can leverage any new opportunities that come your way.