what is market trends in business plan

What are market trends in a business plan?

Table of Contents

What are market trends?

Why do i need market trends in my business plan, how to keep up with market trends, what market trends to monitor frequently, customer behaviours, technological advances, industry regulations, how to write the market trends in your business plan, using countingup to streamline your business.

Market trends in a business plan are key pieces of information that share where your company sits in the wider picture of your industry. Your business plan should prove why your business is viable, show where you fit in the market and what customers you serve. Examining what the market looks like is a smart business move when starting out.

This article on market trends in a business plan will cover:

• What are market trends
• Why market trends are necessary in my business plan

Market trends are the direction changes of a specific industry and can be influenced by customer behaviours or developing technology. 

Take the mobile phone industry for example, as technology has improved over the last twenty years consumers have moved from bulky handsets to slimmer smartphones, that can do everything a computer can and more. Consumers have even gone back to the fashion of flip phones now that technology has allowed a bigger screen that can be folded to save space. This is a good example where both technology and customer demand has influenced the direction of the industry,

Acknowledging these trends when running a business ensures that you stay on the same path as the industry itself, moving with customer needs and adapting your business as the sector and technology evolve. Ignoring market trends in the long term could mean you are left behind by customers, as they may move to businesses that meet their needs more. 

Your market trend research should be part of wider market analysis in your business plan. Understanding where you fit in a sector and what separates your company from competitors will help you shape everything from your product to pricing and marketing plans.

It’s important to focus on trends in this process so you can understand what appeals to your target audience. By analysing the market landscape and trends, you will be able to serve your customers better. It will also feed into your marketing messaging and content creation strategy later on.

A market and trend analysis should be both quantitative (using numbers and statistics such as projections and financial forecasts) and qualitative (based on experience or observation). Trends will fit into both categories of research and you should be able to find data and non-numerical information to support your examination of trends when writing your business plan. 

It’s important to remember that a business plan is not set in stone. It can be a document that you regularly update to reflect changes in your industry and company.

Keeping pace in a fast-changing market is not easy – after all, you’ve got a business to run. Using social media and subscribing to relevant industry emails make it simpler to get the information you need. Doing this will allow you to stay on top of market trends to include in your initial business plan and for more long-term future planning. 

Follow influencers in your industry to see what they talk about and how they create content for the audience that you serve. This will give you an idea of what resonates with your target customers when it comes to content and the form of content the influencer tends to use (video, written blogs, imagery etc.).

Read relevant publications in your sector to find out what is making headlines. Magazines or online blogs that share up-to-date opinions and thought leadership (influential content) will help you stay on the pulse of what is currently important to the industry.

Reading detailed reports and research can be time-consuming but will give you a good overview of the industry’s current state and any new developments. You can then update your business plan to follow the trends that arise from any data you’ve seen. 

Some common areas will affect the running of your business, the trends in your business plan and the whole market landscape. Keeping on top of the following aspects and regularly checking in on them will ensure your business develops as the market does.

Your customer can make or break your business. If you don’t cater to their needs and wants, your business will not be on the radar of your target audience. 

Let’s take an example – if your target customer is under 45, and you primarily do business online, you will need to ensure your website is optimised for mobile. This is because consumer behaviours have changed in recent years, and most searches are now conducted via mobile . If you don’t pick up on this development, your business risks being left behind when competitors optimise for mobile and you don’t.

Like our previous example, customer behaviour often changes with advances in technology. As mobile phones, and then smartphones, have become more able to operate as a computer, consumers have moved to using their phones out of convenience. 

Keep on top of developments that are relevant to your business and make sure you can move with, and not against, the technology changes.

Every now and again, there will be a law change or new regulation that rocks many industries – such as GDPR in 2018. Staying up to date with regulations that could affect the way you run and market your business will save you weighty fines (especially in the case of data protection).

There may be more frequent regulation updates if you operate in an industry that requires you to follow safety guidelines or best practices, such as those that an electrician or builder will have to follow. 

Ensuring that you are up to date on precautions and rules, as well as renewing any professional certifications you need to operate, will ensure your business plan reflects the changing face of your industry.

Using your research on your target customers and the sector,  use the following steps to write up the market trends section of your business plan:

• Current market overview, including which company has the biggest share or most influence
• Where you fit in that market, what gives your business a competitive edge.
• Current trends that impact your business operation
• Any upcoming trends that may impact your business or the products/services you offer
• Outline any plans on how you will keep up with trends
• Upcoming regulatory changes

You can then follow this with your competitor research in your business plan, to give a full picture of your industry and where you fit in.

Now that you have the answers to questions like ‘what are market trends in a business plan’, you will be able to prepare a thorough market analysis to set up your new venture for success. 

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Analyze your market like a pro with this step-by-step guide + insider tips

Don’t fall into the trap of assuming that you already know enough about your market.

No matter how fantastic your product or service is, your business cannot succeed without sufficient market demand .

You need a clear understanding of who will buy your product or service and why .

You want to know if there is a clear market gap and a market large enough to support the survival and growth of your business.

Industry research and market analysis will help make sure that you are on the right track .

It takes time , but it is time well spent . Thank me later.

WHAT is Market Analysis?

The Market Analysis section of a business plan is also sometimes called:

• Market Demand, Market Trends, Target Market, The Market
• Industry Analysis & Trends, Industry & Market Analysis, Industry and Market Research

WHY Should You Do Market Analysis?

First and foremost, you need to demonstrate beyond any reasonable doubt that there is real need and sufficient demand for your product or service in the market, now and going forward.

• What makes you think that people will buy your products or services?
• Can you prove it?

Your due diligence on the market opportunity and validating the problem and solution described in the Product and Service section of your business plan are crucial for the success of your venture.

Also, no company operates in a vacuum. Every business is part of a larger overall industry, the forces that affect your industry as a whole will inevitably affect your business as well.

Evaluating your industry and market increases your own knowledge of the factors that contribute to your company’s success and shows the readers of your business plan that you understand the external business conditions.

External Support

In fact, if you are seeking outside financing, potential backers will most definitely be interested in industry and market conditions and trends.

You will make a positive impression and have a better chance of getting their support if you show market analysis that strengthens your business case, combining relevant and reliable data with sound judgement.

Let’s break down how to do exactly that, step by step:

HOW To Do Market Analysis: Step-by-Step

So, let’s break up how market analysis is done into three steps:

• Industry:  the total market
• Target Market: specific segments of the industry that you will target
• Target Customer: characteristics of the customers that you will focus on

Step 1: Industry Analysis

How do you define an industry.

For example, the fashion industry includes fabric suppliers, designers, companies making finished clothing, distributors, sales representatives, trade publications, retail outlets online and on the high street.

How Do You Analyze an Industry?

Briefly describe your industry, including the following considerations:

1.1. Economic Conditions

Outline the current and projected economic conditions that influence the industry your business operates in, such as:

• Official economic indicators like GDP or inflation
• Labour market statistics
• Foreign trade (e.g., import and export statistics)

1.2. Industry Description

Highlight the distinct characteristic of your industry, including:

• Market leaders , major customer groups and customer loyalty
• Supply chain and distribution channels
• Profitability (e.g., pricing, cost structure, margins), financials
• Key success factors
• Barriers to entry preventing new companies from competing in the industry

1.3. Industry Size and Growth

Estimate the size of your industry and analyze how industry growth affects your company’s prospects:

• Current size (e.g., revenues, units sold, employment)
• Historic and projected industry growth rate (low/medium/high)
• Life-cycle stage /maturity (emerging/expanding/ mature/declining)

1.4. Industry Trends

• Industry Trends: Describe the key industry trends and evaluate the potential impact of PESTEL (political / economic / social / technological / environmental / legal) changes on the industry, including the level of sensitivity to:
• Seasonality
• Economic cycles
• Government regulation (e.g. environment, health and safety, international trade, performance standards, licensing/certification/fair trade/deregulation, product claims) Technological change
• Global Trends: Outline global trends affecting your industry
• Identify global industry concerns and opportunities
• International markets that could help to grow your business
• Strategic Opportunity: Highlight the strategic opportunities that exist in your industry

Step 2: Target Customer Identification

Who is a target customer.

One business can have–and often does have–more than one target customer group.

The success of your business depends on your ability to meet the needs and wants of your customers. So, in a business plan, your aim is to assure readers that:

• Your customers actually exist
• You know exactly who they are and what they want
• They are ready for what you have to offer and are likely to actually buy

How Do You Identify an Ideal Target Customer?

2.1. target customer.

• Identify the customer, remembering that the decision-maker who makes the purchase can be a different person or entity than the end-user.

2.2. Demographics

• For consumers ( demographics ): Age, gender, income, occupation, education, family status, home ownership, lifestyle (e.g., work and leisure activities)
• For businesses ( firmographic ): Industry, sector, years in business, ownership, size (e.g., sales, revenues, budget, employees, branches, sq footage)

2.3. Geographic Location

• Where are your customers based, where do they buy their products/services and where do they actually use them

2.4 Purchasing Patterns

• Identify customer behaviors, i.e., what actions they take
• how frequently
• and how quickly they buy

2.5. Psychographics

• Identify customer attitudes, i.e., how they think or feel
• Urgency, price, quality, reputation, image, convenience, availability, features, brand, customer service, return policy, sustainability, eco-friendliness, supporting local business
• Necessity/luxury, high involvement bit ticket item / low involvement consumable

Step 3: Target Market Analysis

What is a target market.

Target market, or 'target audience', is a group of people that a business has identified as the most likely to purchase its offering, defined by demographic, psychographic, geographic and other characteristics. Target market may be broken down to target customers to customize marketing efforts.

How Do You Analyze a Target Market?

So, how many people are likely to become your customers?

To get an answer to this questions, narrow the industry into your target market with a manageable size, and identify its key characteristics, size and trends:

3.1. Target Market Description

Define your target market by:

• Type: B2C, B2B, government, non-profits
• Geographic reach: Specify the geographic location and reach of your target market

3.2. Market Size and Share

Estimate how large is the market for your product or service (e.g., number of customers, annual purchases in sales units and $ revenues). Explain the logic behind your calculation:

• TAM (Total Available/Addressable/Attainable Market) is the total maximum demand for a product or service that could theoretically be generated by selling to everyone in the world who could possibly buy from you, regardless of competition and any other considerations and restrictions.
• SAM (Serviceable Available Market) is the portion of the TAM that you could potentially address in a specific market. For example, if your product/service is only available in one country or language.
• SOM (Service Obtainable Market / Share of Market) is the share of the SAM that you can realistically carve out for your product or service. This the target market that you will be going after and can reasonably expect to convert into a customer base.

3.3. Market Trends

Illustrate the most important themes, changes and developments happening in your market. Explain the reasons behind these trends and how they will favor your business.

3.4. Demand Growth Opportunity

Estimate future demand for your offering by translating past, current and future market demand trends and drivers into forecasts:

• Historic growth: Check how your target market has grown in the past.
• Drivers past: Identify what has been driving that growth in the past.
• Drivers future: Assess whether there will be any change in influence of these and other drivers in the future.

How Big Should My Target Market Be?

Well, if the market opportunity is small, it will limit how big and successful your business can become. In fact, it may even be too small to support a successful business at all.

On the other hand, many businesses make the mistake of trying to appeal to too many target markets, which also limits their success by distracting their focus.

What If My Stats Look Bad?

Large and growing market suggests promising demand for your offering now and into the future. Nevertheless, your business can still thrive in a smaller or contracting market.

Instead of hiding from unfavorable stats, acknowledge that you are swimming against the tide and devise strategies to cope with whatever lies ahead.

Step 4: Industry and Market Analysis Research

The market analysis section of your business plan should illustrate your own industry and market knowledge as well as the key findings and conclusions from your research.

Back up your findings with external research sources (= secondary research) and results of internal market research and testing (= primary research).

What is Primary and Secondary Market Research?

Yes, there are two main types of market research – primary and secondary – and you should do both to adequately cover the market analysis section of your business plan:

• Primary market research is original data you gather yourself, for example in the form of active fieldwork collecting specific information in your market.
• Secondary market research involves collating information from existing data, which has been researched and shared by reliable outside sources . This is essentially passive desk research of information already published .

Unless you are working for a corporation, this exercise is not about your ability to do professional-level market research.

Instead, you just need to demonstrate fundamental understanding of your business environment and where you fit in within the market and broader industry.

Why Do You Need To Do Primary & Secondary Market Research?

There are countless ways you could go collecting industry and market research data, depending on the type of your business, what your business plan is for, and what your needs, resources and circumstances are.

For tried and tested tips on how to properly conduct your market research, read the next section of this guide that is dedicated to primary and secondary market research methods.

In any case, tell the reader how you carried out your market research. Prove what the facts are and where you got your data. Be as specific as possible. Provide statistics, numbers, and sources.

When doing secondary research, always make sure that all stats, facts and figures are from reputable sources and properly referenced in both the main text and the Appendix of your business plan. This gives more credibility to your business case as the reader has more confidence in the information provided.

Go to the Primary and Secondary Market Research post for my best tips on industry, market and competitor research.

7 TOP TIPS For Writing Market Analysis

1. realistic projections.

Above all, make sure that you are realistic in your projections about how your product or service is going to be accepted in the market, otherwise you are going to seriously undermine the credibility of your entire business case.

2. Laser Focus

Discuss only characteristic of your target market and customers that are observable, factual and meaningful, i.e. directly relate to your customers’ decision to purchase.

Always relate the data back to your business. Market statistics are meaningless until you explain where and how your company fits in.

For example, as you write about the market gap and the needs of your target customers, highlight how you are uniquely positioned to fill them.

In other words, your goal is to:

• Present your data
• Analyze the data
• Tie the data back to how your business can thrive within your target market

3. Target Audience

On a similar note, tailor the market analysis to your target audience and the specific purpose at hand.

For example, if your business plan is for internal use, you may not have to go into as much detail about the market as you would have for external financiers, since your team is likely already very familiar with the business environment your company operates in.

4. Story Time

Make sure that there is a compelling storyline and logical flow to the market information presented.

The saying “a picture is worth a thousand words” certainly applies here. Industry and market statistics are easier to understand and more impactful if presented as a chart or graph.

6. Information Overload

Keep your market analysis concise by only including pertinent information. No fluff, no repetition, no drowning the reader in a sea of redundant facts.

While you should not assume that the reader knows anything about your market, do not elaborate on unnecessary basic facts either.

Do not overload the reader in the main body of the business plan. Move everything that is not essential to telling the story into the Appendix. For example, summarize the results of market testing survey in the main body of the business plan document, but move the list of the actual survey questions into the appendix.

7. Marketing Plan

Note that market analysis and marketing plan are two different things, with two distinct chapters in a business plan.

As the name suggests, market analysis examines where you fit in within your desired industry and market. As you work thorugh this section, jot down your ideas for the marketing and strategy section of your business plan.

Final Thoughts

Remember that the very act of doing the research and analysis is a great opportunity to learn things that affect your business that you did not know before, so take your time doing the work.

Related Questions

What is the purpose of industry & market research and analysis.

The purpose of industry and market research and analysis is to qualitatively and quantitatively assess the environment of a business and to confirm that the market opportunity is sufficient for sustainable success of that business.

Why are Industry & Market Research and Analysis IMPORTANT?

Industry and market research and analysis are important because they allow you to gain knowledge of the industry, the target market you are planning to sell to, and your competition, so you can make informed strategic decisions on how to make your business succeed.

How Can Industry & Market Research and Analysis BENEFIT a Business?

Industry and market research and analysis benefit a business by uncovering opportunities and threats within its environment, including attainable market size, ideal target customers, competition and any potential difficulties on the company’s journey to success.

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Market Trend Analysis: A Simple Step-by-Step Guide

Market trend analysis helps executives and investors spot the next big trends before they peak. 

However, the quality of your market trend analysis process directly impacts the quality of the insights you'll generate.

For example, the data quality you use, the metrics you select for analysis, and how you draw conclusions from that data significantly impact the insights you'll generate from  market trend analysis.

So in this guide we'll walk you through an effective market trend analysis process that outlines:

• Specific data points to identify
• Quality resources to find data
• How to use the insights you discover to inform your business strategy

What is Market Trend Analysis?

Market trend analysis is a process that executives, investors, entrepreneurs, and other business professionals use to identify and assess market patterns based to make informed strategic decisions.

For business leaders, market trend analysis provides insights they need to make sound strategic decisions about new features, product lines, and marketing campaigns to launch (or pivot).

For investors and entrepreneurs, market trend analysis provides insights that guide them toward the most profitable markets and businesses to invest in.

For example, if you’re in the health food market, market trend analysis would help you realize that investing in prebiotic soda is an emerging category. 

Why is Market Trend Analysis Important?

Here are the four main ways market trend analysis helps business executives, entrepreneurs, and investors make better strategic decisions.

Identify Emerging Trends Early

An effective market trend analysis process helps you identify emerging trends before they mature.

Spotting trends early is useful for investors as early investments often yield a higher ROI. This data is also useful for business leaders and entrepreneurs as it allows them to create new products and services to meet future demand before their competitors.

Reduce Investment Risk

Market trend analysis provides insight into market volatility and lets you gauge whether demand increases, decreases, or remains consistent.

This can help you identify the lowest risk opportunities or at least be aware of the risk associated with each investment decision.

Improve Forecasting Accuracy

Launching a new product, service, or marketing campaign requires an accurate estimate of future demand.

Market trend analysis assists your demand calculation by providing an overview of historical consumer interest, which you can use to forecast future demand.

Maintain a Competitive Advantage

Market trend analysis helps businesses maintain a competitive advantage by:

• Uncovering up-and-coming competitors
• Providing insights into why consumers like the new competitors’ products/services
• Providing data on how consumers feel underserved by competitors

For example, Meta has been losing significant market share to TikTok over the last few years. This is mainly because Meta failed to keep up with consumer demand trends.

If Facebook had identified these market trends earlier and pivoted to implement the aspects of TikTok that users love (short, funny videos), it might have retained this market share.

How to Conduct Market Trend Analysis

Whether you’re researching market trends to launch a new business or invest in a startup, here’s a step-by-step process to analyze market trends and inform your business strategy.

Step 1: Identify Emerging Competitors, Products, and Industry Terms

Identifying which trends to analyze is arguably the most important task in this process.

That’s because a great analysis of a mediocre market trend can still lead to a dead end.

Most people approach the trend discovery process by reading industry publications, following industry influencers on social media, and browsing free market trend reports .

While this process can work, it's time-consuming. Plus, there's always a chance that you'll overlook the next emerging trend.

To help you predictably identify under-the-radar trends in seconds, we built Exploding Topics.

The flagship feature is the Trends Database, a curated selection of 1 million data-backed trends our team manually vetted.

To identify emerging competitors, industry terms, and products, simply sort the Trends Database by one of the 35+ categories (fashion, pets, finance, marketing, CPG etc.) and then trend status ("exploding," "regular," and "peaked").

After discovering an interesting trend, click "Track Topic" and save it to a custom Project for more in-depth analysis.

So how do you know that the trends in Exploding Topics are reliable?

We have a thorough trend identification and qualification process to ensure:

• We consistently identify under-the-radar trends and don't miss the next big trend.
• Each trend has long-term growth potential.
• Trends are backed by reliable data – not randomly selected by a single person.

You can use the free Exploding Topics database now to complete this step, or try Exploding Topics Pro to access our premium trends and other market analysis features.

Step 2: Analyze Quantitative Data For Each Trend

It's easy to scan market reports and get lost in endless data without learning anything meaningful about that trend.

So instead of collecting random data, here are the most important quantitative metrics to assess market trends:

• Market size
• Competitor traffic
• Industry funding
• Industry hiring

Below, we'll show you how to collect and use this data to gauge a market's potential.

Market Size

If you Google the trend's keyword combined with the words "market report," you can usually find a market report from Globe Newswire or Grand View Research that shows its market size and growth trend data. This data can help you analyze a market's maturity and estimate its future growth trend.

If a market has a strong compounding annual growth rate (CAGR), it will likely continue to grow.

Traffic Trends

If you used Exploding Topics to identify market trends, you already have search volume trend data. Otherwise, search the trend in Google Trends or Trends Analysis (an Exploding Topics Pro feature) and view its search volume trend.

If you see steady growth, there's a good chance it's a sustainable, long-term trend, whereas spikes and dips indicate that it's either a fad that will die out or a seasonal trend with volatile revenue.

Funding Trends

Another good sign that a market is promising is if venture capitalists are pouring money into that market. While venture capitalists aren't always correct in their predictions, they dedicate all their resources to identifying industry trends, so it's still a good benchmark.

A quick Google search of the industry will usually pull up data on VC investment history for that particular trend. For example, a quick search for "VC funding in sustainable beauty" pulled up this data from a Pitchbook blog post :

Databases like Pitchbook and CB Insights are excellent resources for providing funding data.

Hiring Trends

Hiring trends also help you gauge the market's general health. If most of the top players in a market are all hiring, there's a good chance that the market is growing.

You can find hiring data by looking at the LinkedIn profiles of the top competitors in the space:

You can also check the specific jobs they’re hiring for by looking at their LinkedIn Jobs and Indeed profiles.

Step 3: Gather Qualitative Secondary Data Around Each Trend

Quantitative data provides a good general overview of trend potential. However, qualitative data can help you understand  why a trend is becoming popular and the pain points it's solving.

This information helps you understand how to find gaps in the market and provide a solution to unmet consumer demand.

Here are three ways you can collect qualitative data for various trends.

Reading Customer Reviews

Customer reviews help you understand more about the specific pain points that a particular trend solves and general customer enthusiasm for the new product or service.

The trend will likely continue to thrive if it is highly effective at solving a pain point and customers are enthusiastic about it.

You'll also learn more about your target demographic and the ideal customer persona by reading reviews.

To find reviews, you can use Amazon to research D2C products or Capterra or G2 to read B2B reviews.

Once you have a few hundred reviews to analyze, here are a few key things to look for:

• What specific pain points does the product/service solve?
• How did consumers solve the pain point before this product/service existed, and what alternatives did they use?
• What are common customer complaints with the current products/services available?
• The general sentiment around this trend – what kind of tone do they use when reviewing the product?

For example, if you're researching "bamboo baby clothes," you'll see that customers like the product because the fabric is much softer and more flexible.

Other reviewers claimed they purchased bamboo baby clothes to help with their eczema symptoms.

These reviews help you understand why bamboo baby clothes are popular, which is another positive sign that this trend has long-term growth potential.

You can also extract valuable customer demographic insights from reviews like:

• B2C customer persona (age, gender, knowledge level of the pain point, etc.)
• B2B customer persona (position, company size, budget, etc.)
• Parallel interests
• Goals/ambitions
• How they enjoy spending time
• Activities they don't enjoy

All of this information will be useful in informing future marketing efforts, like how to position products and where to advertise online.

Read Industry Forums

Similar to reviews, industry forums and platforms like Quora and Reddit can provide more detailed discussions on customer pain points around niche trends.

For example, there are several subreddits dedicated to new parents. 

Many of which have active discussions about baby clothes:

This subreddit alone is everything you need to track the current market for baby clothes (including clothes made from bamboo fabric), as it discusses what people like and dislike about the major brands in the space.

You can also join these discussions and get members' feedback on new product ideas.

If you're struggling to find industry forums, you can use a tool like SparkToro to help you. Just type in the trend keyword, and it will show you the websites people searching that keyword frequently visit:

Social Listening

You can also gather plenty of qualitative data and competitive insights by simply listening to what customers say on social media.

For example, you can use a social listening tool like Brand24 or Awario to track competitor brand mentions on social media. Most social listening tools also offer sentiment analysis, which can help you understand how potential customers feel about a particular trend.

Here’s the sentiment analysis trend from Awario of Starbucks:

If you notice that most people have a negative outlook on most of the top brands in the space, that's a negative sign that the trend you're tracking might not be short-term and on its way out.

However, it could also mean that there is unmet demand that you can capitalize on.

Step 4: Conduct Primary Research and Talk to Your Target Market

The secondary market research we did above is great for narrowing down the market trends you're considering, but it's important to also do primary research and talk to your customers before launching a product or service to understand where the gaps in the market exist.

There are two popular methods to execute primary research:

• Survey potential customer
• Interview potential customers

Surveying Potential Customers

If you already have an audience, you can survey your existing email list to gauge their feelings about a particular trend.

However, if you don't have an audience in the market you're analyzing, there are plenty of survey tools like SurveyMonkey and Pollfish that allow you to run a survey to a specific audience.

For example, if you're analyzing the bamboo baby clothing market, you could use one of those survey tools to run a survey to an audience of parents with children under four years old. To get even more specific, you could add a screening question like "Have you ever bought bamboo baby clothing?"

Pricing is usually about $1 per response, making it relatively cost-effective.

Interviewing Customers

Perhaps the best way to assess market demand and learn what customers want is to talk to them one-on-one. Live conversations usually reveal golden insights often missed with other market research methods, as you can ask follow-up questions to get to the root of any pain point.

For example, if you're marketing bamboo baby clothing, you might discover on customer research calls that most users received it as a gift from friends or parents.

That insight means that you should probably adjust your marketing messaging from targeting just new parents to also targeting friends and grandparents who provide more detailed insights.

To conduct customer interviews, you can use a tool like Discuss.io , which records the customer research calls, creates auto-generated clips based on keywords (like "gifts"), and even provides sentiment analysis.

If you're doing B2B customer research, you can find people to interview through a service like Respondent .

Step 5: Create a Beta Offer Around That Trend

By now, you've thoroughly analyzed the market trend from a data perspective. Still, the only way to assess whether or not this trend is worth investing in is to see if customers will buy it.

So create a beta offer and see if people buy it.

Most companies make the mistake of developing a product or service before selling it, only to discover that it's not quite the solution their target demographic actually wants.

To prevent you from making this costly error, create a landing page advertising the offer and see if you can get people to pay real money for the product.

For example, Carry is a platform designed to help freelancers create solo 401ks. Before launching, they  created a landing page to see if enough business owners would sign up for it:

The founder only started building the product after enough people joined.

Even if you're planning to launch an ecommerce product, you can still create a landing page and offer pre-orders before building the product.

If people purchase the product, you can create it and send it to that initial beta group.

If your target audience doesn't buy, you just saved yourself from spending thousands, if not millions, on a market trend that doesn't resonate with your audie

Start The Market Trend Analysis Process Today

A key difference between unicorn companies and legacy companies overtaken by unicorns is their ability to accurately identify, analyze, and swiftly take action on the right market trends.

However, many companies fail to identify the right trends early enough.

So to help you solve this problem, we built Exploding Topics.

It executes the trend discovery process for you by analyzing billions of webpages and extracting the most promising trends. Then, a human analyst manually vets each topic for relevancy before adding it to the Trends Database.

By using the Trends Database, you can find relevant emerging trends in a matter of seconds rather than spending hours reading industry publications, scrolling X, and combing other data sources for potential trends. Which can really help with the trend analysis process.

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How to Write a Market Analysis for a Business Plan

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A lot of preparation goes into starting a business before you can open your doors to the public or launch your online store. One of your first steps should be to write a business plan . A business plan will serve as your roadmap when building your business.

Within your business plan, there’s an important section you should pay careful attention to: your market analysis. Your market analysis helps you understand your target market and how you can thrive within it.

Simply put, your market analysis shows that you’ve done your research. It also contributes to your marketing strategy by defining your target customer and researching their buying habits. Overall, a market analysis will yield invaluable data if you have limited knowledge about your market, the market has fierce competition, and if you require a business loan. In this guide, we'll explore how to conduct your own market analysis.

How to conduct a market analysis: A step-by-step guide

In your market analysis, you can expect to cover the following:

Industry outlook

Target market

Market value

Competition

Barriers to entry

Let’s dive into an in-depth look into each section:

Step 1: Define your objective

Before you begin your market analysis, it’s important to define your objective for writing a market analysis. Are you writing it for internal purposes or for external purposes?

If you were doing a market analysis for internal purposes, you might be brainstorming new products to launch or adjusting your marketing tactics. An example of an external purpose might be that you need a market analysis to get approved for a business loan .

The comprehensiveness of your market analysis will depend on your objective. If you’re preparing for a new product launch, you might focus more heavily on researching the competition. A market analysis for a loan approval would require heavy data and research into market size and growth, share potential, and pricing.

Step 2: Provide an industry outlook

An industry outlook is a general direction of where your industry is heading. Lenders want to know whether you’re targeting a growing industry or declining industry. For example, if you’re looking to sell VCRs in 2020, it’s unlikely that your business will succeed.

Starting your market analysis with an industry outlook offers a preliminary view of the market and what to expect in your market analysis. When writing this section, you'll want to include:

Market size

Are you chasing big markets or are you targeting very niche markets? If you’re targeting a niche market, are there enough customers to support your business and buy your product?

Product life cycle

If you develop a product, what will its life cycle look like? Lenders want an overview of how your product will come into fruition after it’s developed and launched. In this section, you can discuss your product’s:

Research and development

Projected growth

How do you see your company performing over time? Calculating your year-over-year growth will help you and lenders see how your business has grown thus far. Calculating your projected growth shows how your business will fare in future projected market conditions.

Step 3: Determine your target market

This section of your market analysis is dedicated to your potential customer. Who is your ideal target customer? How can you cater your product to serve them specifically?

Don’t make the mistake of wanting to sell your product to everybody. Your target customer should be specific. For example, if you’re selling mittens, you wouldn’t want to market to warmer climates like Hawaii. You should target customers who live in colder regions. The more nuanced your target market is, the more information you’ll have to inform your business and marketing strategy.

With that in mind, your target market section should include the following points:

Demographics

This is where you leave nothing to mystery about your ideal customer. You want to know every aspect of your customer so you can best serve them. Dedicate time to researching the following demographics:

Income level

Create a customer persona

Creating a customer persona can help you better understand your customer. It can be easier to market to a person than data on paper. You can give this persona a name, background, and job. Mold this persona into your target customer.

What are your customer’s pain points? How do these pain points influence how they buy products? What matters most to them? Why do they choose one brand over another?

Research and supporting material

Information without data are just claims. To add credibility to your market analysis, you need to include data. Some methods for collecting data include:

Target group surveys

Focus groups

Reading reviews

Feedback surveys

You can also consult resources online. For example, the U.S. Census Bureau can help you find demographics in calculating your market share. The U.S. Department of Commerce and the U.S. Small Business Administration also offer general data that can help you research your target industry.

Step 4: Calculate market value

You can use either top-down analysis or bottom-up analysis to calculate an estimate of your market value.

A top-down analysis tends to be the easier option of the two. It requires for you to calculate the entire market and then estimate how much of a share you expect your business to get. For example, let’s assume your target market consists of 100,000 people. If you’re optimistic and manage to get 1% of that market, you can expect to make 1,000 sales.

A bottom-up analysis is more data-driven and requires more research. You calculate the individual factors of your business and then estimate how high you can scale them to arrive at a projected market share. Some factors to consider when doing a bottom-up analysis include:

Where products are sold

Who your competition is

The price per unit

How many consumers you expect to reach

The average amount a customer would buy over time

While a bottom-up analysis requires more data than a top-down analysis, you can usually arrive at a more accurate calculation.

Step 5: Get to know your competition

Before you start a business, you need to research the level of competition within your market. Are there certain companies getting the lion’s share of the market? How can you position yourself to stand out from the competition?

There are two types of competitors that you should be aware of: direct competitors and indirect competitors.

Direct competitors are other businesses who sell the same product as you. If you and the company across town both sell apples, you are direct competitors.

An indirect competitor sells a different but similar product to yours. If that company across town sells oranges instead, they are an indirect competitor. Apples and oranges are different but they still target a similar market: people who eat fruits.

Also, here are some questions you want to answer when writing this section of your market analysis:

What are your competitor’s strengths?

What are your competitor’s weaknesses?

How can you cover your competitor’s weaknesses in your own business?

How can you solve the same problems better or differently than your competitors?

How can you leverage technology to better serve your customers?

How big of a threat are your competitors if you open your business?

Step 6: Identify your barriers

Writing a market analysis can help you identify some glaring barriers to starting your business. Researching these barriers will help you avoid any costly legal or business mistakes down the line. Some entry barriers to address in your marketing analysis include:

Technology: How rapid is technology advancing and can it render your product obsolete within the next five years?

Branding: You need to establish your brand identity to stand out in a saturated market.

Cost of entry: Startup costs, like renting a space and hiring employees, are expensive. Also, specialty equipment often comes with hefty price tags. (Consider researching equipment financing to help finance these purchases.)

Location: You need to secure a prime location if you’re opening a physical store.

Competition: A market with fierce competition can be a steep uphill battle (like attempting to go toe-to-toe with Apple or Amazon).

Step 7: Know the regulations

When starting a business, it’s your responsibility to research governmental and state business regulations within your market. Some regulations to keep in mind include (but aren’t limited to):

Employment and labor laws

Advertising

Environmental regulations

If you’re a newer entrepreneur and this is your first business, this part can be daunting so you might want to consult with a business attorney. A legal professional will help you identify the legal requirements specific to your business. You can also check online legal help sites like LegalZoom or Rocket Lawyer.

Tips when writing your market analysis

We wouldn’t be surprised if you feel overwhelmed by the sheer volume of information needed in a market analysis. Keep in mind, though, this research is key to launching a successful business. You don’t want to cut corners, but here are a few tips to help you out when writing your market analysis:

Use visual aids

Nobody likes 30 pages of nothing but text. Using visual aids can break up those text blocks, making your market analysis more visually appealing. When discussing statistics and metrics, charts and graphs will help you better communicate your data.

Include a summary

If you’ve ever read an article from an academic journal, you’ll notice that writers include an abstract that offers the reader a preview.

Use this same tactic when writing your market analysis. It will prime the reader of your market highlights before they dive into the hard data.

Get to the point

It’s better to keep your market analysis concise than to stuff it with fluff and repetition. You’ll want to present your data, analyze it, and then tie it back into how your business can thrive within your target market.

Revisit your market analysis regularly

Markets are always changing and it's important that your business changes with your target market. Revisiting your market analysis ensures that your business operations align with changing market conditions. The best businesses are the ones that can adapt.

Why should you write a market analysis?

Your market analysis helps you look at factors within your market to determine if it’s a good fit for your business model. A market analysis will help you:

1. Learn how to analyze the market need

Markets are always shifting and it’s a good idea to identify current and projected market conditions. These trends will help you understand the size of your market and whether there are paying customers waiting for you. Doing a market analysis helps you confirm that your target market is a lucrative market.

2. Learn about your customers

The best way to serve your customer is to understand them. A market analysis will examine your customer’s buying habits, pain points, and desires. This information will aid you in developing a business that addresses those points.

3. Get approved for a business loan

Starting a business, especially if it’s your first one, requires startup funding. A good first step is to apply for a business loan with your bank or other financial institution.

A thorough market analysis shows that you’re professional, prepared, and worth the investment from lenders. This preparation inspires confidence within the lender that you can build a business and repay the loan.

4. Beat the competition

Your research will offer valuable insight and certain advantages that the competition might not have. For example, thoroughly understanding your customer’s pain points and desires will help you develop a superior product or service than your competitors. If your business is already up and running, an updated market analysis can upgrade your marketing strategy or help you launch a new product.

Final thoughts

There is a saying that the first step to cutting down a tree is to sharpen an axe. In other words, preparation is the key to success. In business, preparation increases the chances that your business will succeed, even in a competitive market.

The market analysis section of your business plan separates the entrepreneurs who have done their homework from those who haven’t. Now that you’ve learned how to write a market analysis, it’s time for you to sharpen your axe and grow a successful business. And keep in mind, if you need help crafting your business plan, you can always turn to business plan software or a free template to help you stay organized.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

Market trends: What you need to know

Last updated

1 April 2024

Reviewed by

An example of a trend is the music technology market. Many years ago, people started listening to music on the radio. Then boomboxes took center stage. Next, people bought iPods to listen to their favorite tunes. And more recently, people have been installing music streaming apps on their smartphones.

Market trends can easily make or break a business. Catching the trend early and analyzing it could keep you ahead of the competition and protect your market share.

Market analysis template

Save time, highlight crucial insights, and drive strategic decision-making

• What are market trends?

A market trend is a general direction a market is taking. The market can move up, down, or sideways.

By understanding market trends, businesses can preempt any disruption or loss of sales, change their operations and strategy, and meet and adjust to the new market direction. Companies can then stay competitive and viable.

Identifying a trend starts with having knowledge of your consumers' interests, needs, and pain points. As needs change, smart and proactive companies will rise to meet them. Besides the consumer, marketing experts study the environment (demographics, economy, politics, technology, and social factors) and how these macro concepts will affect customer needs in the future.

• How many types of market trends are there?

When studying market trends, you can identify three primary types:

Uptrend usually means that financial markets are taking steps forward. In most cases, it could demonstrate economic growth and a growth in the number of jobs. An uptrend is a time when prices of assets are rising, so it's an opportunity to make a profit.

Upward trends often happen when the company is experiencing a positive change in sales or growth. It's time to take action because uptrends rarely last long.

A downtrend in the economy usually means a decrease in its size in sales or growth. The value of stocks could decline rapidly and affect the company's well-being. At this point, customers may be making fewer purchases, and businesses could be reevaluating their sales strategies.

During a downtrend, you must look for new ways to stay competitive and keep the customer's attention.

Sideways trend

A sideways trend (also called a horizontal trend) happens when prices don't move dramatically up or down, and the demand doesn’t either. A horizontal trend means consistency for the market. However, similar to other trends, it rarely lasts long.

Horizontal trends don't have a good influence on the economy. Accordingly, governments may take action to encourage an upward trend.

Market trends can also be:

Short-term . These trends can only occur over a few days or even hours. Examples are social media trends, holidays, and news. For example, a news story relevant to your business could drive you to adjust your offer or re-engage with a target audience segment.

Intermediate. These trends could last several weeks (usually between one or two months). Examples are elections, tax time, deadlines, and December holidays. You may need to adjust your offer to stay competitive until the trend subsides.

Long-term trends . These trends could take years. They might involve significant political changes (Democratic vs Republican government) or serious technological trends (iPod vs boombox). To accommodate these trends, you may need to adjust your entire sales and marketing strategy or change the approach to product development.

• What is the importance of market trends?

Whatever market you are in, volatility is unavoidable. What may have been stable in the past can change drastically within hours. That's why it's vital to stay on top of the latest market trends and analyze them for your company's continued success.

The main benefits of market trend analytics include:

Staying ahead of the competition . Catching the trend early enough and adjusting to it could help you steal market share.

Financial profit . Market trend analysis can help you predict change in stock prices and allow you to adjust your investment strategy.

Understanding the market . Knowing exactly how your market works doesn't just help you make predictions and stay ahead of the competition—it can help you understand the target audience more deeply, improve your offer, and streamline your marketing strategies.

Reviewing your business tactics. M arket trend analytics can show you which business strategies are successful and which require changes to suit the market dynamics better.

Market trends create new opportunities for businesses. Analyzing past trends by observing what business strategies they took and how successful they were can help you figure out how to manage disruption and become an industry leader.

• How to identify market trends

Identifying market trends is a continuous process that requires a variety of tools. The most common steps in market trend analytics include:

PEST analysis

PEST (Political, Economic, Social, Technological) factors dictate market trends. Running a PEST analysis allows you to identify factors that may influence your business now and in the future. It's one of the most used long-term business planning tools.

Social media and influencers

Social media trends often shape the market. Tracking influencers and industry leaders can help you see the market’s direction. Photo-sharing websites and even Yelp can provide valuable insights into new preferences or perceptions.

Customer analysis

Listening to your customers is one of the simplest yet most effective ways to identify market trends. When you see customer needs changing, you’ll likely see a change in the market's direction.

Soliciting customer feedback can quickly provide meaningful data for short or long-term business planning and allow you to make changes to meet the market.

Competitive analysis

Always pay close attention to what your competitors are doing. They could be identifying trends faster than you are. A competitive analysis can help you react to the trends, keep your market share, and allow you to benchmark your business with competitors.

• Identifying and analyzing market trends

Market trend analysis is an essential part of business operations. Regularly identifying and analyzing these trends helps the business stay efficient and competitive, focus on the direction it needs to go in, and protect and improve its bottom line.

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The Ultimate Guide to Market Analysis for Your Business Plan

When creating a business plan , conducting a thorough market analysis is essential to understand your target market, industry trends, and the competitive landscape. A well-executed market analysis for a business plan provides the foundation for informed decision-making, helping you develop strategies that capitalize on opportunities and mitigate potential risks.

In this article, we'll explore the importance of market analysis in a business plan, outline the steps for conducting one effectively, and discuss best practices for ensuring that your analysis is comprehensive and insightful.

What Is Market Analysis for a Business Plan?

Market analysis is a critical component of a business plan that involves gathering and interpreting data about your target market, industry trends, and competitors. It provides a clear picture of the landscape in which your business will operate, enabling you to make data-driven decisions and develop strategies that align with your business plan objectives.

A comprehensive market analysis for a business plan should include:

• Target market identification and segmentation
• Industry trends and growth forecasts
• Competitor analysis
• Market size and potential market share
• Pricing and positioning strategies

Why Do You Need to Conduct Market Analysis for a Business Plan?

Conducting market analysis is critical to the development of a business plan for several reasons:

• Feasibility assessment: Market analysis helps determine whether your business idea is viable and likely to succeed in the current market environment,, which is essential to creating a realistic business plan.
• Informed decision-making: By providing insights into your target market, industry trends, and competition, market analysis enables you to make data-driven decisions that support your business plan's objectives.
• Investor confidence: Including a thorough market analysis in your business plan demonstrates to potential investors that you have a deep understanding of your industry and target market, increasing their confidence in your ability to execute your plan successfully.
• Competitive advantage: Market analysis helps identify your competitors' strengths, weaknesses, and market positioning, allowing you to develop strategies that differentiate your business and strengthen your business plan.

Steps to Conduct Market Analysis for a Business Plan

• Define your target market: Identify your ideal customer and segment your target market based on shared characteristics to ensure your business plan is tailored to their needs and preferences.
• Analyze industry trends: Research your industry's current state, growth projections, and emerging trends to identify factors that may impact your business plan, such as technological advancements or regulatory changes.
• Conduct competitor analysis: Evaluate your competitors' market share, strengths, weaknesses, and unique selling propositions to identify opportunities for differentiation in your business plan.
• Determine market size and potential: Estimate the total size of your target market and your potential market share to set realistic goals and projections in your business plan.
• Develop pricing and positioning strategies: Based on the results of your market analysis, determine the optimal pricing and positioning for your products or services to align with the goals of your business plan.

Best Practices for Effective Market Analysis in a Business Plan

• Use multiple data sources: Gather data from a variety of sources to ensure a comprehensive and balanced analysis that supports your business plan.
• Conduct primary research: Engage directly with potential customers to gain valuable insights that can inform your business plan's strategies and tactics.
• Stay up-to-date: Regularly monitor industry trends, competitor activities, and market conditions to ensure your business plan remains relevant and accurate.
• Collaborate with experts: Consult with industry experts, mentors, or business advisors to gain valuable insights and validate your findings for your business plan.
• Present findings clearly: Use visuals, such as charts, graphs, and infographics, to present your market analysis findings in a clear and engaging manner within your business plan.

By conducting a comprehensive market analysis for your business plan, you'll gain a deep understanding of your target market, industry landscape, and competitive environment. This knowledge will inform your business plan's strategies, guide your decision-making, and ultimately increase your chances of success.

Remember to regularly review and update your market analysis as your business grows and market conditions evolve to ensure that your business plan remains adaptable and well-positioned for long-term success.

How to Write and Conduct a Market Analysis

3 min. read

Updated January 3, 2024

A market is the total sum of prospective buyers, individuals, or organizations that are willing and able to purchase a business’s potential offering. A market analysis is a detailed assessment of the market you intend to enter. It provides insight into the size and value of the market, potential customer segments, and their buying patterns.

In this section, we’ll be covering what information to include in your business plan after completing your research. If you’re struggling with the research itself, you should check out our market research resources for step-by-step guidance.

• How to write your market analysis

The information featured in your market analysis should focus on firmly defining who your customers are. Here are the two steps you need to take:

Define your target market

Finding your target market requires segmentation based on demographic and psychographic information until you reach the ideal customer. You need to address who they are and how you identified them.

Target market examples

A target market analysis is a key part of any business plan. Let’s walk you through some examples.

Determine your market size

Identifying your potential customers isn’t enough. You also need to prove that the size of the market can support your business. To do this, it’s helpful to define what’s available, serviceable, and can be obtained.

Optional information to include

The main purpose of the market analysis is to show who your customers are. While defining your target market may be enough, it can be helpful to include some of the following supporting details.

Show that you know your industry

Before starting a business, you should know the state of your industry and where it’s headed. This includes industry metrics you’ve collected, any barriers to entry, emerging trends, or common success factors.

Write a customer analysis

Conducting a customer analysis provides additional depth to your target audience. You’ll know them better and go beyond just segmentation.

Use a customer persona to describe your customers

It can be difficult for you, your employees, and potential investors to visualize who your customers are based solely on data. Creating a customer persona can bring them to life and support your target market choice.

• Why conduct a market analysis?

Conducting any sort of in-depth research can be a time-intensive process. However, the benefits far outweigh the investment—so much so that it’s recommended that you revisit your market analysis at least once a year in order to stay on top of emerging trends or changes in the market.

As part of your business plan, it demonstrates that you have a firm understanding of your customers. Here are the other benefits gained by completing a market analysis:

Reduce risk

If you really understand your potential customers and market conditions, you’ll have a better chance of developing a viable product or service. It also helps you explore if your idea will work or not. If you determine that the market size can’t sustain your business, there are too many barriers, high starting costs, intense competition, or some other factor that would lead to a higher chance of failure—you can pivot and avoid wasting your hard-earned time and money.

Better position your business

Researching the market landscape will help you strategically position your business. This may be done through pricing, specific features, production/distribution, or any other method to differentiate your business and make it more attractive to your target audience.

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Verify product/market fit

Part of positioning your business is determining if there is a sustainable market for your business. This starts with segmenting and identifying your ideal customers. It then involves a process of gathering feedback, gauging interest, and finding any sort of demonstrable traction. To learn more about finding product market fit, check out the market research section of our Starting a Business Guide.

Inform investors

Research is not only valuable for informing you as a business owner but in convincing investors and lenders that your idea is worth funding. In many ways, the fact that you spent time pulling together viable information is just as important as the information itself. It shows that you care about finding success as a business owner and are willing to put in the work, even at this early stage.

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

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• Write Your Business Plan | Part 1 Overview Video
• The Basics of Writing a Business Plan
• How to Use Your Business Plan Most Effectively
• 12 Reasons You Need a Business Plan
• The Main Objectives of a Business Plan
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• The Top 4 Types of Business Plans
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• 3 Key Things You Need to Know About Financing Your Business
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• Write Your Business Plan | Part 2 Overview Video
• How to Fund Your Business Through Friends and Family Loans and Crowdsourcing
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• How to Fund Your Business With an SBA Loan
• How to Fund Your Business With Bonds and Indirect Funding Sources
• How to Fund Your Business With Venture Capital
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How to Identify Market Trends in Your Business Plan Where is your industry now, and where's it going? Here's the best way to track industry movements.

By Eric Butow Oct 27, 2023

Opinions expressed by Entrepreneur contributors are their own.

This is part 5 / 9 of Write Your Business Plan: Section 4: Marketing Your Business Plan series.

Timing in business is everything.

And the best time to address a trend is before it is even beginning and certainly before it is widely recognized. If you can prepare a business that satisfies a soon-to-be popular need, you can generate growth that is practically off the scale. (This is, by the way, the combination that venture capitalists favor most.) The problem, of course, is spotting the trends first and acting quickly before others jump in line ahead of you.

Marc Andreessen, founder of Netscape Communications, had the good fortune to develop software for browsing the web just as the internet, which had been around for twenty years, was coming to widespread popular attention. The timing of his move made him hundreds of millions of dollars, but some browser developers who came later fell by the wayside.

Related: Your Guide to Gaining a Competitive Edge and Succeeding as an Entrepreneur Over the Next 5 Years

How to Identify Trends

What is a trend ? Loosely defined, it is a series of occurrences that indicates a pattern. You can use a couple of techniques to identify trends and present your identifications in your plan. Some trend analysts look at past events (usually trends themselves) and project them forward. For example, trend analysts in recent years have looked at the huge numbers of baby boomers, people born in the years between 1946 and 1964. They then projected forward to see that these baby boomers would be retiring in the near future and saw a defined market for that segment of the population.

Another good way to forecast trends is by test marketing. You try to sell something in a single store and see how it does before you roll it out in your whole chain. The key to this technique is trying it in a well-selected test market that closely resembles the market you'll try to sell to later.

Related: Profit From Current Fads

Focus groups and surveys try to catch hold of trends by asking people what's hot. You can ask open-ended questions: What type of apps or new mobile phone features would you like to see? Or show them product samples and see how they react. This is also tricky because you are dealing with a small group of, you hope, representative people and extrapolating to a larger group. If your group isn't representative, your results may be misleading.

Related: 5 Must-Haves for Entrepreneurs and Their Startups to be Successful

Some other ways you can try to nail a trend in advance: Talk to salespeople who are in touch with customer needs, quiz executives whose jobs are to watch the big picture, read a wide variety of periodicals and try to spot connections, or hire think tanks of experts to brainstorm over what the future might hold.

In most of these trend-forecasting techniques, statistics play a big role. Mathematicians assign numerical values to variables such as loyalty to existing brands, then build a model that can indicate invisible trends to intuitive analysis. Providing some statistics in the trends section of your plan can make it more convincing.

Related: How to Identify and Research Your Competition

More in Write Your Business Plan

Section 1: the foundation of a business plan, section 2: putting your business plan to work, section 3: selling your product and team, section 4: marketing your business plan, section 5: organizing operations and finances, section 6: getting your business plan to investors.

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What Is an Industry Analysis and Trends Business Plan?

An industry analysis and trends business plan is a component of a business plan that provides a comprehensive insight into industry conditions and trends. 3 min read updated on September 19, 2022

An industry analysis and trends business plan is a component of a business plan that provides a comprehensive insight into industry conditions and trends that can impact a company's success and growth. A thorough analysis of your industry and its trends can give you and other people a clearer idea of the feasibility and relevance of your business idea or goals.

Elements of a Business Plan

There are many different types of business plans. When you are creating your business plan, the information you choose to include will depend on your audience and personal preferences, as well as the questions you wish to answer and problems you seek to solve. While business plans may vary greatly, most of them contain the following elements:

• Executive summary
• Business description
• Analysis of business environment analysis
• Industry analysis
• Market analysis
• Competitive analysis
• Marketing plan
• Management plan
• Operations plan
• Financial projections
• What Is an Industry Analysis?

An industry analysis enables you to gain a better understanding of the industry and market in which you will be conducting business. By conducting an industry analysis before you start writing your business plan , you will be able to:

• Identify industry trends, such as potentially problematic aspects of the industry
• Identify trends and opportunities in products and services
• Calculate capital requirements
• Determine business risks and find ways to reduce them

An industry analysis must be specific to the industry in which you are conducting or are planning to conduct business. With the information you obtain from the analysis, you can devise a long-term strategy to mitigate risks and take full advantage of growth opportunities.

It is important not to confuse an industry analysis with a competitor or market analysis. An industry analysis seeks to describe the products or services offered in a specific industry and the boundaries of the marketplace in relation to economic, political, and regulatory issues. In other words, it defines the scope of the marketplace. A market analysis , on the other hand, helps you determine whether or not a market within your industry will be profitable for your products or services.

Conducting an Industry Analysis

The most widely used method for evaluating any industry was devised by Michael E. Porter from Harvard University. This method can help you create an effective strategy for competing in your industry. According to Porter, all industries and markets are influenced by five forces, which include:

• Ease of entry — Companies that are already operating in an industry will enjoy a competitive advantage over newcomers. However, their profits will be reduced unless they find a way to slow down or block the new entries. As for new businesses, they will face a variety of barriers, including government regulations, patents and copyrights, and customer loyalty.
• Suppliers' power — Suppliers of materials, products, or services can have a significant impact on a business' ability to compete. In the event that there are few suppliers offering the products or materials or few alternative products, the suppliers have the power to dictate quantities, prices, and delivery times for companies that have no choice but to buy from them.
• Buyers' power — In an industry where buyers can choose from many competing products, consumers will have strong bargaining power. This can affect the ability of a company to price its products or services without being afraid of losing customers.
• Availability of alternative products — In the situation where two businesses with similar products are competing within an industry, both of them will benefit as their marketing efforts will generally increase demand for their products. However, their market share will be reduced if there is another company selling a different kind of products that can serve as a substitute for theirs.
• Competitive rivalry — Competitive rivalry takes into account the number of competitors present in a particular industry, as well as their relative strength. In an industry where many companies are selling similar products, there is little opportunity for one company to control consumers' or suppliers' tendency to go elsewhere.

There are many free industry analysis tools and resources available to business owners who are preparing to create a business plan, such as:

• Securities and Exchange Commission
• U.S. Census Bureau
• Hoover's Online
• Thomas Register
• Library of Congress Legislative Information
• Websites of trade associations and companies

If you need help creating an industry analysis and trends business plan, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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A Beginner’s Guide to Understanding Industry Trends

by Mike Vestil  

This article provides an in-depth look at the importance of understanding and staying ahead of industry trends for business success. Readers will learn the definition and different types of trends, including technology, consumer demand, regulatory, and more.

Further, the article explores various methods to identify and analyze trends, such as data analysis, competitor insights, and expert reports. It also discusses impactful tools for monitoring trends, the effect of trends on business strategy, and how to capitalize on industry trends. Finally, through case studies, readers will gain insights into companies that have successfully adapted to trends and those that have faced challenges due to lagging behind.

Understanding Industry Trends

Definition of industry trends.

Industry trends refer to the general direction that a specific industry or market is moving towards, influenced by various factors like technology, consumer demand, economic factors, and more. They are a collective pattern observed in the responses, behaviors, and performance of the players within a particular industry. These trends can be short-term or long-term and can dictate how businesses within the industry strategize their operations, product development, and marketing efforts.

Importance of Identifying and Analyzing Trends

Identifying and analyzing industry trends is crucial for any business to stay ahead in a constantly changing and evolving market landscape. By understanding the trends, businesses can make sound decisions on various aspects such as R&D, production, sales, marketing, and overall business strategy. A good understanding of industry trends can help businesses:

• Keep up with competitors
• Identify potential markets and customers
• Predict and prepare for changes in consumer demand
• Discover new business opportunities
• Stay compliant with regulations
• Gain insights for innovation and product development

Different Types of Industry Trends

Industry trends can be broadly classified into the following categories:

1. Technology

Technology-based trends are innovations that drive changes in the industry. These could include the integration of artificial intelligence, automation, IoT, or the adoption of new software platforms. As technology advances, so do the expectations and demands of consumers and businesses in terms of product offerings and processes.

2. Consumer Demand

Consumer demand trends are driven by the changing preferences and needs of the customers. This could range from the desire for environmentally-friendly products to the preference of online services over traditional offerings. Businesses must stay in tune with these shifts to deliver relevant products and services to their audience.

3. Regulatory and Legal

Regulatory and legal trends involve changes in laws, rules, and regulations governing a specific industry. Compliance with these changes is necessary to avoid legal repercussions and maintain a positive brand reputation.

4. Economic Factors

Economic trends are driven by changes in the overall economic climate, such as currency fluctuations, interest rates, employment, and inflation. These factors can impact consumer spending, investment opportunities, and overall business performance.

5. Globalization and Geopolitics

Trends in globalization and geopolitics can greatly affect businesses as they involve political, social, and economic forces that impact an industry in a specific region or globally.

6. Demographics and Social Lifestyle

Demographic trends refer to changes in the composition and attitudes of the population, such as aging, urbanization, and growing cultural diversity. Social lifestyle trends involve changes in behavior, values, and cultural norms that influence consumer preferences.

Methods to Identify Industry Trends

Data analysis and market research.

Analyzing data and conducting market research help businesses to identify trends by providing insights into customer behaviors, preferences, and competitor strategies. This can be done through data mining, collecting data from various sources and understanding customer segments, buying patterns, market size, and growth rates.

Competitor Insights

It is important to keep track of competitor activities and strategies as their advancements may impact your business as well. Monitoring press releases, financial reports, product launches, and other company news can provide valuable insights into the industry trends.

Customer Feedback and Surveys

Understanding customer needs, preferences, and pain points can help businesses identify trends early. Conducting surveys and gathering customer feedback through various channels can provide valuable insights into rising expectations and preferences.

Expert Insights, Reports, and Publications

Another method of identifying trends is by following industry experts, news sources, and publications relevant to your industry. Analyst reports, government resources, trade publications, and white papers are excellent sources of information that can provide reliable and detailed insights on the latest trends.

Industry Events and Conferences

Attending industry events, trade shows, and conferences can provide valuable opportunities to network with experts, get insights into new trends, and observe emerging technologies and products firsthand.

Tools for Analyzing and Monitoring Trends

Industry and market reports.

Many organizations, such as research firms or consultancies, produce detailed reports on specific industries and markets. These reports are a valuable resource for understanding market dynamics, trends, and growth opportunities, as well as competitor analysis.

Data Analytics Tools

Data analytics tools can help businesses sort and analyze large volumes of data from various sources to identify trends and patterns. Examples of these tools include data visualization software, data mining tools, and business intelligence solutions.

News Aggregators and Alerts

Staying up-to-date with industry news can help businesses recognize trends as they arise. News aggregators and alerts, such as Google Alerts or Feedly, can be customized for your specific industry to find and deliver relevant news to your inbox or app.

Competitor Tracking Tools

Competitor tracking tools, like Owler or SEMRush, can give valuable insights into your competitors’ activities, such as news, funding, and product launches, helping you stay aware of their strategies and detect trends early on.

Social Media Listening Tools

Lastly, social media listening tools, such as Mention or Hootsuite, can help businesses track what customers and industry influencers are saying, providing insights into customer opinions, pain points, and preferences, as well as high-level industry trends.

Impact of Industry Trends on Businesses

Industry trends not only reflect the evolution of markets, customer needs, and technologies, but also help shape the business landscape. Organizations that can identify and successfully adapt to these trends often lead to improved market share, profitability, and long-term stability. However, businesses that struggle to embrace industry trends may face stagnant growth, reduced relevance, and an accelerated risk of failure. In this discussion, we will explore the impact of industry trends on various aspects of businesses, including strategy, innovation, competitive advantage, and revenue growth.

Effect on Business Strategy

The emergence of new industry trends can have a profound effect on business strategy. These trends often force businesses to re-evaluate and evolve their current approach, to ensure they remain competitive and are aligned with market changes. For instance, the rapid adoption of digital technologies and e-commerce has compelled traditional brick-and-mortar retailers to invest in online presence or partnerships with online platforms.

Aligning business strategies with constantly shifting industry trends requires ongoing assessment of the competitive landscape, recognising evolving customer needs, and anticipating future market changes. Additionally, businesses must be agile in identifying ways to capitalize on these trends, which could involve restructuring internal resources or pursuing mergers and acquisitions to quickly access new capabilities. Do check out our glossary section as well.

Innovation and Adaptability

Innovation is essential for businesses to differentiate themselves from competitors, capture customer interest, and excel in dynamic markets. Industry trends often serve as a catalyst for innovation, as companies must evolve to align with new market paradigms. Adaptability and innovation can be seen in various sectors, such as the rise of streaming services in the entertainment industry, electric vehicles in the automobile sector, and artificial intelligence in most industries.

Organizations that adopt innovative processes, practices, or technologies often stand out from competitors and are better positioned to capitalize on new growth opportunities. Moreover, a culture of innovation and adaptability enables businesses to be more resilient in dealing with unforeseen challenges or changes in market conditions.

Competitive Advantage

Recognizing and leveraging emerging industry trends can provide businesses with a significant competitive advantage. Companies that are ahead of the curve in understanding and seizing opportunities presented by industry trends often establish themselves as market leaders, while late adopters may struggle to catch up or face obsolescence.

A proactive approach to identifying and capitalizing on industry trends can provide businesses opportunities to create a defensible market position, build and strengthen brand differentiation, and develop new revenue streams. Furthermore, keeping abreast of industry trends helps organizations identify potential threats to their business and allows them to take appropriate mitigating actions.

Revenue Growth and Market Share

Successful implementation of strategies based on industry trends often leads to increased revenue growth and market share. As businesses innovate and diversify their product offerings, they can attract a wider customer base and open up new markets, creating additional sources of revenue.

The rapid growth of alternative sources of sustainable energy is an excellent example of how companies that invest in new technologies based on industry trends can increase their market share and revenue. Companies that fail to acknowledge these trends risk being left behind as competitors seize opportunities and customers ultimately shift their allegiance.

Risks and Challenges

Despite the potential benefits of aligning with industry trends, there are inherent risks and challenges that businesses need to be aware of. Identifying and acting on false or short-lived trends can lead to wasted resources and potential damage to brand reputation. Additionally, adapting to new industry trends may require significant investments in resources, infrastructure, and research, without any guarantee of success.

To mitigate these risks, businesses can invest in market research , customer foresight, and employ trend-watching tools to ensure they make informed decisions. Furthermore, by pursuing a flexible and adaptable approach, businesses can pivot their strategy as new trends emerge or fail, ensuring they stay relevant and competitive in their industry.

Capitalizing on Industry Trends

Capitalizing on industry trends is about recognizing and leveraging emerging opportunities in the market. In today’s fast-moving world where technology and innovation are key drivers of change, businesses need to be agile and adaptive to stay ahead of the competition. In this section, we will discuss the process of identifying, understanding and taking advantage of industry trends to maximize profits and growth.

Identifying Opportunities

The first step in capitalizing on industry trends is to identify opportunities that exist within the market. This requires staying informed about the industry, closely monitoring the activities of competitors, understanding customer preferences, and conducting comprehensive research about the latest innovations and technological advancements.

Some useful strategies for identifying opportunities include attending industry conferences and events, subscribing to industry publications, and engaging with thought leaders through social media networks and online forums. Businesses should also consider investing in market research and competitive intelligence tools to gather accurate and up-to-date information about industry trends and opportunities.

Once a business has identified a potential opportunity, it should validate its viability by conducting feasibility studies, market research, and by seeking opinions from experienced professionals and target customers.

Implementing Changes and New Offerings

Upon identifying a viable opportunity, businesses need to strategize and plan for implementing necessary changes within their organization. This could involve developing new products or services, altering existing processes, investing in new technologies, or repositioning marketing strategies to capitalize on the emerging trend.

Implementing changes also involves the allocation of resources, management of risks, and evaluation of the potential impact on business performance. Businesses should maintain open lines of communication across departments and ensure that employees are kept informed and involved in the process of change to encourage a smooth transition.

Collaborations and Partnerships

Forming strategic partnerships and collaborations can expedite entry into new markets and help businesses capitalize on industry trends more effectively. By collaborating with other organizations, a business not only shares the risk and reward of entering a new market but also gains access to new resources and specialized skills.

Strategic partnerships can take various forms, ranging from joint ventures and licensing agreements to co-development and co-marketing arrangements. In such instances, businesses should thoroughly evaluate potential partners for compatibility and reliability, and ensure that the terms of the partnership align with their long-term strategic goals.

Mergers and Acquisitions

In some cases, capturing the value of industry trends may necessitate the acquisition of other companies or mergers with competitors. Mergers and acquisitions can provide numerous benefits, including gaining market share, acquiring new technologies, and improving economies of scale.

However, businesses should carefully evaluate the risks associated with these transactions, including cultural and managerial differences, legal and regulatory concerns, and the possibility of overpaying for assets. A thorough due diligence process can help mitigate such risks and maximize potential benefits.

Case Studies: Success and Failure in Industry Trends

To better understand the importance of capitalizing on trends, it is essential to look at real-world examples. This section highlights successful and unsuccessful adaptations to industry trends.

Successful Trend Adaption: Companies that Flourished

Several companies have managed to capitalize on industry trends and emerged as leaders within their respective markets. For instance, Netflix was initially a DVD rental service but quickly pivoted to streaming content when consumer preferences shifted from physical media to online streaming. This adaptation allowed Netflix to become the dominant player in the global video streaming market.

Similarly, Apple foresaw the trend towards smartphones, and its innovative iPhone disrupted the entire mobile phone industry. Apple’s consistent efforts to introduce new products and services, such as the iPad, Apple Watch, and Apple Music, have helped the company to maintain a leading position in various industries.

In both these cases, the success of these companies can largely be attributed to their ability to understand the shifting trends in their industries and swiftly adapt their business models to accommodate these changes.

Failed Trend Adaption: Lessons Learned

On the other hand, several businesses have suffered due to their inability or reluctance to adapt to evolving industry trends. Kodak, once a pioneer in the photography industry, failed to adapt its product offerings when digital camera technology emerged, leading to its eventual bankruptcy. Similarly, Blockbuster, a once-dominant video rental chain, failed to recognize the trend towards streaming services, ultimately leading to its decline and subsequent liquidation.

These two examples serve as cautionary tales for businesses to recognize and embrace early signs of trend shifts in their industries, and their failure offers valuable lessons in the need for timely adaptation and innovation.

To summarize, capitalizing on industry trends requires businesses to monitor their environments, identify opportunities, evaluate risks and benefits, and adapt strategies when necessary. Companies should be open to change and embrace innovation to remain competitive and position themselves for long-term success. Studying the successes and failures of other businesses can offer valuable lessons for navigating industry trends and staying ahead of the curve.

Industry Trends — FAQ

1. what prominent industry trends have emerged recently due to technological advancements.

Some notable industry trends emerging from technological advancements include artificial intelligence (AI), Internet of Things (IoT), cybersecurity, 3D printing, and sustainable energy innovations. Companies utilize these technologies to create more efficient processes, reduce environmental impacts, and maintain a competitive edge.

2. How do industry trends impact the job market and career opportunities?

Industry trends can rapidly change the job market landscape, creating demand for new skill sets and career opportunities. For instance, the growing importance of data analysis, cybersecurity, and sustainable technologies have created high demand for skilled professionals in these areas while decreasing demand for traditional roles in some industries.

3. What are some successful strategies for staying current on industry trends?

To stay current on industry trends, businesses should consider attending conferences, reading industry-specific publications, following experts on social media, and subscribing to relevant newsletters. Additionally, networking with professionals in the industry can provide valuable insights into the latest developments and trends.

4. How can businesses adapt and respond to emerging industry trends?

Businesses can adapt and respond to emerging industry trends by embracing technology, investing in employee training, and adopting a flexible management approach. By partnering with technology innovators, seeking external consultation or collaboration, and fostering a culture of continuous improvement, businesses can keep up with industry changes.

5. In which industries is the impact of technology trends most pronounced?

The impact of technology trends is particularly pronounced in industries such as manufacturing, finance, healthcare, transportation, and entertainment. These sectors are experiencing significant transformations due to AI, automation, data analysis, and other technology-related advancements.

6. How do industry trends influence customer expectations and demands?

Industry trends shape customer expectations and demands by setting new benchmarks for quality, accessibility, and user experience. For example, innovations in mobile technology and IoT have led consumers to expect faster, more personalized service. Staying current with these trends is essential to maintain customer satisfaction in a competitive market.

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About the author 

Mike Vestil

Mike Vestil is the author of the Lazy Man's Guide To Living The Good Life. He also has a YouTube channel with over 700,000 subscribers where he talks about personal development and personal finance.

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How to Write the Market Analysis Section of a Business Plan

Alyssa Gregory is an entrepreneur, writer, and marketer with 20 years of experience in the business world. She is the founder of the Small Business Bonfire, a community for entrepreneurs, and has authored more than 2,500 articles for The Balance and other popular small business websites.

The market analysis section of your business plan comes after the products or services section and should provide a detailed overview of the industry you intend to sell your product or service in, including statistics to support your claims.

In general, the market analysis section should include information about the industry, your target market, your competition, and how you intend to make a place for your own product and service. Extensive data for this section should be added to the end of the business plan as appendices, with only the most important statistics included in the market analysis section itself.

What Should a Market Analysis Include?

The market analysis section of your small business plan should include the following:

• Industry Description and Outlook : Describe your industry both qualitatively and quantitatively by laying out the factors that make your industry an attractive place to start and grow a business. Be sure to include detailed statistics that define the industry including size, growth rate , trends, and outlook.
• Target Market : Who is your ideal client/customer? This data should include demographics on the group you are targeting including age, gender, income level, and lifestyle preferences. This section should also include data on the size of the target market, the purchase potential and motivations of the audience, and how you intend to reach the market.
• Market Test Results : This is where you include the results of the market research you conducted as part of your initial investigation into the market. Details about your testing process and supporting statistics should be included in the appendix.
• Lead Time : Lead time is the amount of time it takes for an order to be fulfilled once a customer makes a purchase. This is where you provide information on the research you've completed on how long it will take to handle individual orders and large volume purchases, if applicable.
• Competitive Analysis : Who is your competition? What are the strengths and weaknesses of the competition? What are the potential roadblocks preventing you from entering the market?

7 Tips for Writing a Market Analysis

Here is a collection of tips to help you write an effective and well-rounded market analysis for your small business plan.

• Use the Internet : Since much of the market analysis section relies on raw data, the Internet is a great place to start. Demographic data can be gathered from the U.S. Census Bureau. A series of searches can uncover information on your competition, and you can conduct a portion of your market research online.
• Be the Customer : One of the most effective ways to gauge opportunity among your target market is to look at your products and services through the eyes of a purchaser. What is the problem that needs to be solved? How does the competition solve that problem? How will you solve the problem better or differently?
• Cut to the Chase : It can be helpful to your business plan audience if you include a summary of the market analysis section before diving into the details. This gives the reader an idea about what's to come and helps them zero in on the most important details quickly.
• Conduct Thorough Market Research : Put in the necessary time during the initial exploration phase to research the market and gather as much information as you can. Send out surveys, conduct focus groups, and ask for feedback when you have an opportunity. Then use the data gathered as supporting materials for your market analysis.
• Use Visual Aids : Information that is highly number-driven, such as statistics and metrics included in the market analysis, is typically easier to grasp when it's presented visually. Use charts and graphs to illustrate the most important numbers.
• Be Concise : In most cases, those reading your business plan already have some understanding of the market. Include the most important data and results in the market analysis section and move the support documentation and statistics to the appendix.
• Relate Back to Your Business : All of the statistics and data you incorporate in your market analysis should be related back to your company and your products and services. When you outline the target market's needs, put the focus on how you are uniquely positioned to fulfill those needs.

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Types of Market Trends: An Industry Trends Analysis

November 4, 2020 • DJ Team

A market trend is anything that alters the market your company operates in. This could be something as far-reaching as artificial intelligence technology, as fickle as consumer preferences, or as industry-specific as new regulations. In fact, it’s almost certain there are multiple market trends affecting your business at the same time, right now.

Why is it important to keep up to date with industry trends and developments? Well, because that’s how you grow and stay ahead of your competition. As author and motivational speaker John Maxwell once said, “Change is inevitable, but growth is optional.” While you can’t stop the momentum of change like technology or regulations, you can take steps to grow in tandem with those changes.

This trend-tracking doesn’t have to add up to hours of research every week. By understanding the types of market trends , you can distinguish what makes sense for your business. This focused analysis helps you adapt and stay competitive in any rapidly changing business environment.

What is an Example of a Market Trend?

If you try a simple Google search for “market trends,” you’re likely to get a lot of information about stocks, financials, and investing. Today this term applies to many industries, but it does have its roots in finance. And though your industry of operation might be B2B services, retail, energy, technology, healthcare, or many other sectors of the economy, you can still learn from the three ways financial professionals think about a market trend.

1. Short-Term Market Trends

Short-term trends occur over a few hours or days. In marketing or business positioning, this would include news and current events, social media trends, or sales events like Amazon Prime Day and Black Friday. For example, if a news story breaks that is relevant to your business, you need to create content about that quickly to capture interest before it ebbs away.

2. Intermediate Market Trends

Intermediate trends last anywhere from two to eight weeks. In finance, these are rallies and turnarounds that can mystify analysts. In business, causes of intermediate trends can be easier to pinpoint, but not always. Events like the holiday season, elections, tax time, or industry-specific compliance deadlines represent some factors that can drive intermediate market trends. Maybe your competitors do something every year to mark some of these occasions, or your customers are looking for unique products or services for a few months. Other times, social media influencers or emerging research drives these trends in interest.

3. Long-Term Market Trends

Long-term trends last years and even decades. These are big societal changes that affect your business, like mobile devices and artificial intelligence, gaps or deficiencies in the talent pipeline, the COVID-19 pandemic, and culture shifts like the #metoo movement or demands for racial equity and justice . While you might need to adapt to the new environment as these long-term trends manifest, responses should be more thoughtful than reactionary. For instance, just because you know consumers want a mobile-friendly experience doesn’t mean you should implement one without strategy.

What Are Some Important Trends in Marketing?

Let’s explore two real-world recent trends in marketing with examples to further illustrate the point.

• Short and Sweet Video Marketing: While video watching hit an all-time high in 2020, forecasts estimate that adults will spend approximately 80 minutes per day watching digital videos on mobile devices by 2023. One of the best ways to get them to watch and engage with your videos is by keeping them short. Reddit took this to an extreme during the 2021 Super Bowl, buying a five-second commercial slot as a part of a brand awareness campaign. It worked, and the Tweet linked to the video has racked up over 464,000 views.
• Pillar-Based Marketing: Content still remains one of the most effective ways to get your audience’s attention. Pillar-based marketing is a strategy that builds authority, pushing your content further up the rankings on search engine results pages. Sharing our own win with pillar-based marketing, we published six pieces of content per week for three weeks around the topic of SEO Keyword Research. The results? We went from 10 to 59 first page rankings.

How to Determine Market Trends You Should Focus On

There are lots of trends that matter to different consumers at different times. But if your business tries to be everything to everyone, your message won’t speak to your ideal customer over all the others. Focusing on short-term market trends might be one way to make customers aware of you through social media or Google results, but it’s how you speak to long-term trends and show your value that will take them from casual reader to dedicated customer.

There are a few ways you can find out about the market trends affecting your business. As you explore these trends, it’s also important to be asking critical questions about how your values and service offerings align, fit in, or even run counter to the trends.

Follow Types of Recent Trends in Marketing

One way to hone in on market trends unique to your industry is to read the publications that are reporting on the current issues. For example, if you’re looking to stay up to date with recent trends in content marketing, you might follow Search Engine Journal or Search Engine Land . If possible, sign up for newsletters to receive articles and insights right to your inbox. If podcasts are more your thing, our own Page One or Bust talks SEO strategy with business leaders and SEO experts alike.

Use Industry Trends Analytics

Digital analytics tools, like those we offer at DemandJump, for consumer behavior insights can help you get the bigger picture on your market, your audience, what they are searching for, and how it relates to the greater economy.

Observe Your Competitors

If all your competitors are doing something, does that mean you should do it? Maybe yes, or maybe no. But observing their marketing is a way to make more educated decisions.

But don’t forget, it’s not just about what your brand considers important. The whole reason for focusing on trends to begin with is to appeal better to your customers. Your trends analysis should also be paired with market research to inform your messaging strategy and content creation plan. With DemandJump, customers can dive into the exact keywords and phrases their competitors are ranking for—giving them the knowledge they need to take over the market share.

What are the 3 Main Types of Market Research?

Following along with trends just because they exist is never a great idea. To make sure your choices will result in more business and more customer loyalty, you can’t skip market research. This process will help you understand the problems customers are facing, and refine the way you present your solutions.

There are three main types of market research:

• Exploratory Research: This approach is used to better-define a problem and your organization's opportunity to solve it. This research is usually conducted through in-depth customer interviews or discussions.
• Descriptive Research: This approach is used to determine if a product or service is a good fit for the market, or to judge the general attitudes of customers toward a service or product. In addition to interviews, surveys may also be used.
• Causal Research: This market research is used to test scenarios or determine cause-and-effect. This might be conducted through focus groups or A-B testing to see if changing one aspect of the pitch or marketing strategy changes the outcome with customers.

These market research tactics will help you understand what customers are looking for and what elements motivate them toward a buying decision. How do their questions change along with their needs? What solutions are they seeking? With these answers, you will be able to put current market trends in the context of your business and your market.

What Are the Advantages of Trend Analysis?

There are several advantages of conducting market trend analysis, including establishing better relationships with customers and driving your business’s sales. Let’s dive into each of these as well as some of the other benefits.

• Building Better Relationships With Customers: When you know who your customers are and what they are searching for, you can create a marketing plan that will better attract them and keep them once they are customers.
• Creating Competition: You want to keep up with the competition, and analyzing marketing trends allows you to do so. What is your competition doing well? What could they be doing better? Look at those areas and determine what your business can do to remain competitive.
• Supporting Business Growth: When you look at marketing trends, you can determine where your business can develop new products and services to attract new customers.
• Identifying Areas for Improvement: What could your business do better? Look at marketing trends to determine what those areas might be and improve upon them.
• Avoiding Crises: The unexpected happens all the time. When you look at marketing trends, you can start to predict what might cause problems for your business before you actually face those problems.
• Driving Sales: Ultimately, all of these points lead to one big benefit for your business: an increase in sales. Once you figure out what your customers want and how to give it to them, then hopefully you can improve the financial well-being of your business via increased sales.

Get On-Demand Industry Trends Analysis With DemandJump

We created DemandJump to help marketers get insights and drive outcomes faster and more efficiently.  DemandJump doesn’t just track search trends and consumer behavior in real-time, but also draws in insights from competitors to help you see how they are reacting to trends.

With the insights provided by DemandJump, market trends will already be put in the context of your target customer’s experience, so you can skip many of these steps and get focused on the work of improving your business. Get started today!

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How to Do a Market Analysis for a Business Plan?

What is market analysis in a business plan.

Market analysis for a  business plan serves the purpose of exploring the suitability of your product or service for the market. 

Your market analysis for a business plan lets you see your position in the market. It helps you identify the market trends, product demand, buying trends, seasonality, competition, etc.

A good market analysis will prepare you for a successful launch and steady growth. The time you invest in exploring your target market is well-spent. 

In this article, we have discussed how to conduct market research for a business plan. Make sure you read till the end to fully understand  how to do a market analysis in business plan .

Want to write a business plan? Get help from our business plan writers for hire !

Why you should do market analysis for a business plan.

When you analyze your target market in-depth, you understand it better. You understand what market demands are and how your product can serve the market. This market knowledge will help you convince your lenders and investors to work with you. 

These are some reasons why you should include a market analysis business plan.

Reduce Risk

Target on the right customer base, know the trend, project revenues, set growth benchmarks , optimize marketing strategy .

Doing a market analysis will lower your risk of failure by helping you spot market pitfalls. When you know what lies ahead, you can plan better and prepare better. 

A market analysis for a business plan will help you identify the right customer base for your product or service. 

Many people cast a wide net at the start but a market analysis proves them wrong. 

For example, if we say that many Indians live in a neighborhood and an Indian food restaurant will be a sure hit there may be wrong. Maybe all they are eating at home is Indian food and they don’t wish to eat the same food at a restaurant. 

Another example would be thinking that since your product or service is a good match for small businesses, all small businesses are your target customers. 

When you do market analysis and look critically at your customer base, you can dodge false optimism.

All markets are unpredictable in one way or another. Knowing how the market behaves when changes occur and understanding the market trends is important for long-term success. 

Check for seasonality, innovation in the market, and consumer behavior trends. See how your industry responds to the changes in economy.

 A market analysis for a business plan can help you make sound revenue projections for your business. Your projections with data are no longer your wishful thoughts. 

If your revenue forecast is based on solid market research, potential investors and lenders will know it and consider you a serious candidate for funding. 

Every industry moves in a distinct way. Some industries have favorable business conditions and growth is rapid in that industry. 

Doing a market analysis and knowing your industry will help you set realistic growth benchmarks. When you set aggressive growth benchmarks with a reasonable chance of success, you can maximize your business growth. 

Your marketing strategy is how you’ll raise awareness and drive sales for your product or service. Your market analysis can tell you:

• how to reach your customers, 
• how you should design your offers, 
• how much will you need to spend 
• When will you achieve your marketing goals

What should you include in Market Analysis?

You will analyze the target market in business plan in this section. Here is what you should include in a market analysis for business plan.

Industry Outlook

Industry outlook shows the direction of your industry. It shows if you are in a growing industry, a stagnant, or a declining industry. 

Consider adding these points to  your industry outlook:

• Are you in a big market like casual wear clothing or a niche market like heavy snow coats 
• Discuss the product life cycle 
• Discuss projected year-over-year growth

Target Market 

Determine and specify your target market. Your initial, super-optimistic estimations about your target market may be incorrect. 

Base your assumptions on data. Specify your target market by using these markers. 

• Identify your target customers’ demographics like gender, age, location, income, education, etc. 
• Create a buyer persona to show what your ideal customer looks like 
• Include research and surveys about your target market like focus groups, and feedback surveys

Product/Service Demand 

Document your product or service demand in the market. See how many units of similar products or services are sold per year and how many people make the purchase. 

Market Growth Prospects 

Assess the overall change in your industry. Every industry has different dynamics. Some industries react to economic shocks with a rapid decline while others may show resilience. 

Many consumer goods industries stay stable for a long stretch of time and you can spot the decline years ahead. On the same lines, discuss the growth prospects of your industry and the market.

Market Trends 

Trends are the sudden changes that disrupt. The fashion industry is one of the best examples to study market trends. 

Watch for similar market trends in your industry and document them. 

Competitor Analysis 

Competitor analysis is the meat of your market analysis for a business plan. These businesses are like case studies as you can learn from their business practices and growth trajectories. 

Industry Entry Barriers 

If the industry entry barriers are low, you’ll compete with a lot of businesses. However, your chances of early success are higher in such industries as you can easily reach the breakeven point and sustain your business. 

Hard entry barriers mean there are established players in that industry and it will take time for you to grab a share of the market. 

Industry Regulations 

See the level of regulations for your industry and make a plan ahead to deal with them. The regulations increase business operating and overhead costs.

When doing industry analysis in business plan, list the industry regulations you’ll need to care for. 

Access our free business plan examples now!

How to do market analysis for a business plan.

A market analysis is about collecting all the necessary information and research and getting into the details of your industry and competitors. 

You can do a market analysis using this simple framework.

Decide your Purpose 

Do industry research, define your customer, understand competition, collect more data for the market , make use of this data .

You may be doing a market analysis for knowing your industry better or for convincing a potential lender or investor. Once you determine the purpose of market analysis, you can estimate the time and type of research the process will take.

Discuss the industry trends and see how the market is changing over the past few years. You’ll also need to include industry forecasts to complete the picture. 

A comparative market analysis helps you identify your competitive advantage. Make sure to include this in the market analysis.

Defining your customer helps you understand their needs. Define your customer in terms of demographics like:

• Occupation 

Build a buyer persona for your product or service. This will help you understand the customer well and design products and services for your ideal customer. 

Pro Tips: Learn how to write a business plan products and services section.

Understanding your competition will prepare you for the market. Look into their strengths and weakness. See what businesses are successful in your industry and study them to understand how they are doing it. 

Steps for doing competitor analysis business plan.

• List your top competitors 
• Do a SWOT analysis for each competitor 
• Compare their product or service with yours 
• Analyze why a customer chooses their product over others 
• Identify opportunities on how you can improve your product

The more data you have, the better your chances are of doing a top-notch market analysis. 

Collect your data from credible sources. Make sure your data is factually correct. You will be making decisions on the basis of this data. 

Here are some reliable and credible data sources that you use in your market analysis. 

• U.S. Bureau of Labor Statistics
• U.S. Census Bureau
• Local Chamber of Commerce & Industries 
• Trade Journals and Academic Research
• Your own SWOT analysis
• Market surveys or feedback

It is time to make sense of the numbers. 

The market analysis includes details from business conditions to long-term success in the industry. It calculates risk for your business.  Some factors may not be in your favor and you’ll have to decide on your chances of success.  

Keep your data organized in sections. Organize your data with a goal to present it before investors, lenders, and the team. That way, you’ll keep it simple and easy to understand.

Do you want to see an example of market analysis in a business plan? See our business plan examples to understand how it is done. 

Still wondering what is a market analysis in a business plan? See this example of market analysis in a business plan and writer a killer market analysis. Download the  Business Plan Market Analysis Example PDF  here. 

Market Research from WiseBusinessPlans

At Wise Business Plans™ we pride ourselves on giving you the best market research for business plans available. We subscribe to commercial software programs and pay hefty licensing fees to give your business a competitive edge. 

Instead of spending hours on figuring out how to do market research for a business plan, hire professionals from WiseBusinessPlans and get a top-notch market research report for your business plan. 

Market Research Institutes and Databases we use 

IBIS World’s Industry Market Research Reports are powerful business tools that provide strategic insight and analysis on over 700 U.S. industries. 

ESRI: Market Research combines GIS (Geographic Information System) technology with extensive demographic, consumer spending, and business data for the entire United States to deliver on-demand, boardroom-ready reports and maps.

Dun & Bradstreet: D&B’s products and services are drawn from a global database of more than 130 million companies.

Hoovers : Hoover’s database of industry information, 65 million company records, and 85 million people records you can deliver valuable business insight to your employees and customers.

First Research: First Market Research is the leading provider of market analysis tools that help sales and marketing teams perform faster and smarter, open doors, and close more deals.

Worried about writing a business plan? Hiring a business plan writer can ease your worries and create a strong plan.

Sample research.

Base your Market Research on data and expertise you can trust.   Hire professional market researchers from WiseBusinessPlans and take a solid start. 

A market analysis in a business plan is an assessment of the target market and industry in which your business operates. It involves researching and analyzing factors such as market size, competition, customer needs, trends, and growth potential.

Gather information for a market analysis by conducting market research through various methods like surveys, interviews, online research, and analyzing industry reports. Collect data on customer demographics, market trends, competitors, and customer preferences.

Include key components in a market analysis, such as an overview of the industry, target market segmentation, customer profiles, competitor analysis, market trends and growth projections, and barriers to entry. Use this information to identify opportunities and assess the viability of your business.

Analyze the competition by identifying direct and indirect competitors in your target market. Assess their strengths, weaknesses, market share, pricing strategies, and unique selling propositions. This analysis will help you understand your competitive landscape and differentiate your business.

A market analysis is crucial for a business plan as it provides insights into the market potential, customer demand, and competitive landscape. It helps you make informed decisions, develop effective marketing strategies, and demonstrate to investors or lenders that there is a viable market for your products or services.

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Market Sizing & Trends Analysis

Written by Dave Lavinsky

In this article you’ll learn about market sizing and trends and how to identify them for your business.

Why You Need to Know Your Market Sizing & Trends

When you’re developing a simple business plan template to start or grow your company, you need to understand the size of your market and trends affecting it.

The market size confirms the market is big enough to warrant an investment of your time, and potentially investor/lender funding, into pursuing the opportunity. If the market is too small, you nor investors will not be able to get a reasonable return on your investment (which will dissuade angel investors and/or VC funding ).

Likewise trends tell you if the market is increasing or decreasing, and how the market is changing. This can help you improve your strategy. For example, if you were starting a fitness center and you learned that there was a trend towards personal training services, it would be important for your strategy and plan to offer such options.

Market Sizing & Trend Analysis Questions to Answer

The following questions should be answered in the industry analysis component of your business plan :

• How big is the business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key manufacturers and/or suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your company. The relevant market size equals a company’s sales if it were to capture 100% of its specific niche of the market. It is calculated by multiplying the number of prospective customers by the amount they could realistically spend on your product/service each year.

Need Help with Market Research?

With Growthink’s Expert Market Research service, you will get solid market research to give lenders and investors confidence in your market opportunity, your competitive advantage, and your financial projections.

Click here to have our team craft your market research to help ensure your success.

How to Conduct Market Sizing & Trend Analysis

We like to determine market sizes using both a top-down (what percent of the market can we reasonably expect to penetrate) and bottom-up (e.g., how many units can we expect to sell at what price) methodology.

As many assumptions are required when sizing a new or emerging market, we tend to rely heavily on case studies of thousands of other companies and clients who have penetrated new markets. We also access paid industry reports from other companies who have done deep dive research into the relevant industries.

In assessing markets, looks at the current market size and what the market size might be in the short, mid and long-term. Specifically, answer the folowing key questions such as the following:

• How has the relevant market size changed over the past one to five years?
• What is the projected growth of the relevant market?
• What factors will affect this growth? Economic factors? Changing regulatory conditions? Changing consumer needs? 

Need Help Understanding Your Market Size & Trends?

Would you like Growthink to provide an assessment of your market size and for you? If so, please contact us below.

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More From Forbes

Digital transformation in banking: how to make the change.

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Vladimir Lugovsky is the Co-Founder of digital product development agency  Akveo  and low-code SaaS startup UI Bakery.

Digital transformation remained an important trend in banking in 2021. Similar to its impact on other business domains, technology is gradually reshaping the financial services industry in every aspect. However, the industry has a long way to go, and banks are still dipping their toes in the digital water, with 27% only launching a digital transformation strategy in 2021.

Meanwhile, customers have changed too. Gen-Z and Millennials expect traditional financial organizations to act in a technology-driven way, like Google or Apple do. As a result, traditional players feel the urge to introduce innovative and competitive digital solutions to ensure long-term market survival. 

What Is Digital Transformation?

Digital transformation in banking is a cultural, organizational and operational change through technologies. In its most basic sense, digital transformation is the transition to digital customer services via the internet. In a broader sense, digital transformation means improvements in a wide range of areas related to offerings, process automation, customer experience, data integration, organizational flexibility and sales.

This technological trend determines the direction the industry is taking, and banks need to consider technological advances in their strategies. The pandemic-driven crisis is only increasing the urgency. According to Gartner, 69% of boards of directors say the pandemic and the economic crisis are accelerating their digital initiatives.

So how do you start the clock on your digital journey? First, it’s important to determine what effect you expect from digitization. It's not enough to hope for “good things” to happen. Let's get specific: Digital transformation in banking means introducing customer-centricity, integration and inclusivity . With technology, the customer journey gets personal, automated and cohesive within a single ecosystem. 

The ultimate goal of digital transformation is to understand and fulfill customers' needs — e.g., a mobile application becomes a universal tool whether clients need to pay their bills, transfer money online, apply for a loan or receive information at the touch of a button.

This level of convenience helps banks maintain a reliable customer retention strategy, reduce costs associated with attracting new customers, facilitate onboarding and thus increase revenue. 

Preparation

Secondly, you have to be aware of the volume of investments required to achieve the desired results. As said earlier, technology plays a critical role in all business operations. However, their effectiveness depends on how the business uses these technologies. That is why coming up with a clearly articulated strategy is crucial to digital transformation success.

Businesses must correctly assess and manage the risks associated with digital transformation, most notably possible data leakage, unauthorized access to data and other cybersecurity-related risks. Therefore, before drawing up a step-by-step plan for digital transformation, it is necessary to revise current business processes and IT infrastructure across the board. Departmental managers have to analyze the security gaps at the company level and find out how they can be eliminated using digital solutions.

But don’t get me wrong: digital transformation is not solely about the technology itself. While developing and improving customer experience, financial institutions also establish a culture of innovation for employees. Work processes automation implies radical shifts in employee behavior, so the training of employees should be at the top of the digital agenda.

Digital transformation initiatives won’t come cheap. The customer-centric mindset requires constant improvement of technologies. But is there a price tag on innovation? After all, you invest in your organization’s future via robust IT platforms. If you aspire to provide first-rate financial services and outperform competitors, giving a green light is a costly yet necessary decision.

Here are the results you can expect from digital transformation. First, the unprecedented level of convenience, when clients have easy access to easy-to-use mobile applications and services. Second, the connectivity that lets users stay in touch with their bank 24/7. Finally, the innovation that helps bank institutions keep up with digital trends. 

The sector's transformation means that banks are beginning to offer fully digital services, minimize direct interaction with clients and introduce powerful and agile banking IT products and systems. This means bank institutions are becoming technology companies in their own right. The synergy of IT and marketing departments within a bank creates the opportunity to deliver digital products internally and externally.

This level of technological agility, with flexible services, new business models and faster time-to-market is the essence of digital transformation. 

Ultimately, digital strategy initiatives by banks result in:

• Elimination of paperwork.

• Less time spent servicing clients, conducting transactions and settlements.

• Increased productivity.

• Organizational transparency.

• Effective teamwork.

• Lower operational costs.

• Risk reduction in core activities.

• More revenue.

As tech-savvy fintechs enter the market, big banks are beginning to reap the benefits of adopting technology. For instance, Bank of America now receives more deposits via mobile than its brick-and-mortar branches. Banks must use technology to transform products, attract customers, empower employees and optimize operations. Technologies can shape the future only when they permeate all internal and external levels of a bank's activities.

Contrary to common misconceptions, the digital transformation won't make traditional banking institutions go extinct. Instead, it is an opportunity to reimagine financial services, making banks customer-centric, innovation-driven and future-ready.

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Food industry fires back at kamala harris’ price control plans to combat soaring grocery prices.

Food industry executives pushed back on Vice President Kamala Harris’ claim that they were “price gouging” by raising the cost of groceries and making it more expensive for Americans to eat.

Harris, the Democratic Party nominee for president, blamed corporate greed for soaring prices at supermarkets and said there was a need to institute price controls in order to bring down the cost of food nationwide , which has soared since President Biden took office.

Food companies responded that the costs of labor and raw materials have soared due to high inflation — necessitating price hikes. They also said they need to maintain healthy profit margins to keep developing new products.

“We understand why there is this sticker shock and why it’s upsetting,” Andy Harig, a vice president at FMI, a trade group representing food retailers and suppliers, told the Wall Street Journal.

“But to automatically just say there’s got to be something nefarious, I think to us that is oversimplified.”

Some economists say that attempts to rein in price gouging could effectively be a tool to control prices, which could have unintended consequences.

“It can be very hard to create any price control that is not gameable,” Michael Sinkinson, an economist at Northwestern University’s Kellogg School of Management who was also on President Biden’s Council of Economic Advisers, told The Journal.

Kamala Harris’ plan for American-style communism is a $1.7 trillion giveaway, when our budget deficit this year is $1.9 trillion, and our national debt is already $35 trillion. We rate some of the proposals on a scale of 1 to 5 hammer and sickles:

PRICE CONTROLS Pitch:  A “first-ever” federal ban on “price gouging.”

What’s wrong with it:  What’s gouging? What’s excessive? It does not say, and price controls invariably backfire as demand increases for limited goods.

Cost:   Black markets, hoarding, less competition … and higher inflation

CHILD TAX CREDIT

Pitch:  Restore the COVID-era child tax credit of $3,600, but raise it even more to $6,000 for the first year of a child’s life.

What’s wrong with it:  It all comes at a massive cost, which is why it wasn’t renewed when the pandemic was over. The credit also disincentivized work, and helped fuel inflation as parents spent more on child care.

Cost: $1.2 trillion

HOUSING GIVEAWAY

Thesis:  Up to $25,000 in down-payment assistance for first-time homebuyers.

Critique:  Will likely spur even more inflation. With the government chipping in money to help buy a home, home prices will go up.

Cost: $100 billion

BUILDER TAX BREAKS

Thesis:  A $40 billion “innovation fund” to get cities to build more housing.

Critique:  Harris again does not trust the market to operate as it always has — demand for homes will spur more construction. Instead she wants to give companies tax breaks, which likely won’t result in affordable housing.

“How do you set a price control? What is the right benchmark?”

Under the Biden-Harris administration, grocery prices have shot up 21%, part of an inflation surge that has raised overall costs by about 19% and soured many Americans on the economy, even as unemployment fell to historic lows.

Grocery prices were 27% higher in July than they were during the same month in 2019 — a year before the coronavirus pandemic upended supply chains and wreaked havoc in the market.

Harris said that if she were to be elected president, her administration would ban price gouging by food suppliers and grocery stores.

She said her administration would empower the Federal Trade Commission and state attorneys general to issue new penalties for companies that exploit consumers to amass profits on food and groceries.

Her opponent, former President Donald Trump, blasted the proposal, calling it a “Soviet style” policy that would cause even higher inflation.

“The proposal calling for a ban on grocery price gouging is a solution in search of a problem,” the National Grocers Association told the Journal.

Executives at food companies said profit margins are modest compared with other industries.

The Washington Post, whose editorial page is sympathetic to Democrats, also panned Harris’ proposal , saying that the “price gouging” ban is a “populist gimmick.”

“Inflation spiked in 2021 mainly because the pandemic snarled supply chains, and … the Federal Reserve’s policies, which the Biden-Harris administration supported, are working to slow it,” the newspaper wrote.

Instead of “level[ing] with voters,” the veep “opted for a less forthright route: Blaming big business,” the Jeff Bezos-owned newspaper wrote.

With Post wires

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The world of marketing is constantly evolving, with new trends and strategies emerging each year. Staying updated with these changes is crucial for businesses to remain competitive and effectively reach their target audiences. In 2024, several marketing trends are gaining traction, driven by technological advancements, changing consumer behaviors, and the ever-increasing demand for personalized experiences. Understanding these trends and how to implement them can help businesses improve their marketing efforts and achieve better results.

This article will explore six emerging marketing trends and strategies that are dominating 2024. 

Video Content Dominance

The dominance of video content continues to shape the marketing landscape, with platforms like YouTube, TikTok, and Instagram Reels driving its popularity. Video content is highly engaging and can effectively capture the audience’s attention, making it an essential component of any marketing strategy. Businesses that integrate video into their marketing efforts can benefit from increased brand awareness, higher engagement rates, and improved conversion rates.

Creating engaging video content requires a focus on storytelling, creativity, and authenticity. Short-form videos, behind-the-scenes glimpses, tutorials, and user-generated content are particularly effective in capturing audience interest. Additionally, live streaming and interactive video formats can foster real-time engagement and create a sense of community. So, to maximize the impact of video content, businesses should optimize their videos for different platforms, ensuring they are accessible and engaging for a diverse audience. 

Personalized Pay-Per-Click (PPC) Campaigns

One of the major trends in 2024 is the move toward personalized Pay-Per-Click (PPC) campaigns. Claire Jarrett, a leading PPC consultant , has been helping business owners and CEOs generate high-quality leads through Google Ads since 2007. Her vast experience underscores the importance of personalized PPC strategies for marketing success. Businesses aiming to enhance their PPC efforts should consult with PPC consultants like Claire Jarrett to create tailored campaigns that effectively reach their target audiences.

Personalized PPC campaigns involve creating ads that are specifically tailored to the interests and behaviors of different audience segments. This approach increases the likelihood of engagement and conversion as the ads resonate more with the viewers. Personalized PPC strategies leverage data and insights to deliver the right message to the right audience at the right time. By utilizing the expertise of a seasoned consultant, businesses can ensure their campaigns are well-optimized, resulting in higher ROI and more effective lead generation through platforms like Google Ads.

Influencer Partnerships and Micro-Influencers

Influencer marketing continues to grow in popularity, but there is a notable shift towards partnering with micro-influencers. These influencers, who have smaller but highly engaged follower bases, offer a more authentic and relatable connection with their audiences. Brands are increasingly recognizing the value of micro-influencers in building trust and driving engagement. Partnering with influencers who align with the brand’s values and target demographics can lead to more meaningful and impactful marketing campaigns.

Micro-influencers tend to have a more dedicated and niche following, which can result in higher engagement rates compared to influencers with larger but more general audiences. As such, this makes micro-influencer partnerships particularly effective for brands looking to reach specific market segments. Successful influencer marketing campaigns often involve collaborative content creation, product endorsements, and social media takeovers. By leveraging the authenticity and reach of micro-influencers, brands can enhance their visibility and build stronger connections with their target audience.

Artificial Intelligence and Machine Learning

Artificial intelligence (AI) and machine learning are revolutionizing marketing by providing advanced tools for personalization, customer insights, and automation. These technologies enable businesses to analyze vast amounts of data to understand customer behavior, preferences, and trends more accurately. AI-driven tools can create personalized marketing campaigns, predict customer needs, and automate repetitive tasks, allowing marketers to focus on strategy and creativity.

For example, AI can be used to segment audiences more precisely and deliver personalized content at optimal times, enhancing engagement and conversion rates. Machine learning algorithms can analyze customer interactions and feedback to continuously improve marketing strategies. Additionally, AI-powered chatbots and virtual assistants provide real-time customer support, enhancing the customer experience and freeing up human resources for more complex tasks. By integrating AI and machine learning into their marketing strategies, businesses can achieve greater efficiency, precision, and effectiveness in their campaigns.

Sustainability and Social Responsibility

Consumers are increasingly looking for brands that prioritize sustainability and social responsibility. This trend reflects a growing awareness of environmental and social issues and a desire to support companies that contribute positively to society. Brands that integrate sustainability into their marketing strategies can build stronger relationships with their customers and differentiate themselves from competitors. This can involve using eco-friendly materials, reducing carbon footprints, and supporting social causes.

Marketing strategies that highlight a company’s commitment to sustainability and social responsibility can enhance brand loyalty and attract new customers. For example, brands can showcase their sustainable practices through storytelling, transparency reports, and social media campaigns. Collaborating with non-profits and community organizations can also demonstrate a genuine commitment to social impact. By aligning marketing efforts with sustainability and social responsibility, businesses not only appeal to conscientious consumers but also contribute to a better world.

Omnichannel Marketing Strategies

The importance of providing a seamless customer experience across multiple channels cannot be overstated. Omnichannel marketing strategies integrate online and offline marketing efforts to ensure a consistent and cohesive brand experience. This approach recognizes that customers interact with brands through various touchpoints, including websites, social media, email, physical stores, and more. An effective omnichannel strategy ensures that these interactions are interconnected and reinforce each other, creating a unified customer journey.

Implementing omnichannel marketing strategies involves using data to understand customer behavior across different channels and tailoring marketing efforts accordingly. For example, a customer might discover a product on social media, research it on the company’s website, and make a purchase in a physical store. By tracking these interactions and preferences, businesses can provide personalized recommendations and offers, enhancing the customer experience. Successful omnichannel campaigns often involve coordinated efforts across marketing, sales, and customer service teams to ensure a seamless and integrated approach. 

Personalized PPC, influencer partnerships, video content, AI, sustainability, and omnichannel marketing are key trends for 2024. Guided by experts, these strategies enhance engagement and efficiency. Success lies in personalization, authenticity, and integration. Staying informed and adaptable will ensure competitiveness and growth in the dynamic digital landscape. In 2024, the ability to adapt and leverage these trends will be crucial for achieving marketing success and driving business growth.

Copyright © 2024 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

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Reporting by Jody Godoy in New York; editing by Chris Sanders and Jonathan Oatis

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Jody Godoy reports on tech policy and antitrust enforcement, including how regulators are responding to the rise of AI. Reach her at [email protected]

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