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Have you ever wondered how a market analysis works?

What do you need to check and how can you do it most effectively?

I’m sure what you’ve read elsewhere might have made it seem daunting, but don’t worry.

Market analysis is straightforward, and you don’t need complicated tools to complete it.

Follow along in this blog post, and I’ll explain everything step by step.


What is a Market Analysis


Market analysis, contrary to common belief, serves to understand how your competitors operate: what marketing strategies they use, where they advertise, what they write in their ads, and how their marketing funnel works.

Market analysis has nothing to do with your customers’ buying habits or preferences; those will be analyzed to create a concept that sets your business apart from your competitors’, but we’ll see that in another blog post.

Market analysis focuses on your competition and aims to establish the market context in which you operate.

Why is market analysis important for us entrepreneurs?

Because our companies or businesses operate in constantly changing environments.

Marketing is always evolving.

Business as a whole is always evolving.


Without a solid understanding of the competitors we’ll have to contend with, we risk making strategic decisions based on incorrect assumptions, which can lead to financial losses or missed opportunities (or both of these catastrophic outcomes).

A proper market analysis answers these questions:

  • How big is the market?
  • Who are the main competitors? What are their strengths and weaknesses?
  • How do our competitors work? What online and offline tools do they use?
  • How is their marketing funnel structured?
  • What are the strengths and weaknesses of our company?

By answering these questions, we can understand the marketing preparedness level of our competitors and act accordingly to counter them.

Therefore, the main purpose of market analysis is to help companies make data-driven decisions (as I always teach you: math never lies), reduce risks, and identify potential growth opportunities.


How to Do a Market Analysis


1. Checking for Competitors

The approach I suggest for assessing the potential success of your business idea is to see if anyone else has already ventured into a similar activity.

Identifying your main competitors in the industry and analyzing their strategies, strengths, and weaknesses is crucial to understanding how to operate correctly.

Now, someone might object:

“But if there are already competitors, does that mean the market is saturated? Wouldn’t it be wiser to seek niches without competitors to establish leadership?”

This thought stems from the misguided and completely incomprehensible teachings of self-proclaimed business gurus like Al Ries and the like.

Unfortunately, unexplored markets no longer exist, and niches without competitors belong to the past.

There’s nothing new to invent anymore.


In any business you choose to invest time and resources in, you will always have competitors who have been in the market longer than you.

But having many competitors isn’t a disadvantage today; on the contrary, it indicates that the niche is thriving, the product is in demand, and people want to buy it.

Rather, it’s the absence of competitors that should raise a red flag because if no one is selling that product or service, it indicates that unfortunately, your business idea has no chance of success.

On affiliate marketing platforms like ClickBank (many of you will know this), the best products to choose can be identified by examining those promoted by most affiliates.

If many affiliates are promoting a product, it means it’s selling well.

This rule also applies in business in general.

So, step number one of market analysis: check that there are a good number of competitors already selling the product or service you wanted to sell too.


2. Finding Leaders in Your Industry

Once you’ve confirmed that there are already competitors in your industry, the next step in a good market analysis is to identify the leaders in your sector.

These are the ones universally recognized as the primary sellers of your product or service.

To do this, you need to open Google and search for these two phrases, one at a time:

  • “Top [YOUR CATEGORY]”
  • “Best [YOUR CATEGORY]”
  • For example, if you’re a real estate agent working in London, your searches would be:

    • “top real estate agencies in london”
    • “the best real estate agencies in london”

    By studying the best in the field, you can determine how to differentiate your business.

    Why do you need to know who the best in your industry are (or those that people consider the best)?

    Because you need to understand how they operate and try to take inspiration from what they do – which has already proven to work well, otherwise, no one would have labeled them as the best – in order to start your own business.


    3. Explore Ranking Websites

    Most of the results returned by Google will be various rankings of industry leaders.

    Excluding sponsored results, open all the websites on the first page of the Google SERP that rank the leaders in your industry.

    Top real estate companies in London
    Google ranking showing the top real estate companies in London.
    Source: Google.com.

    4. Search for Their Facebook Business Pages

    Make a list of the names that appear most frequently in the rankings.

    Then, search for them on Facebook and visit their business pages.

    5. Inspect Their Paid Ads

    Now, you need to proceed carefully.

    You must find the “Page Transparency” menu item on the Facebook pages under the “Page Info” tab.

    Sometimes, it’s found within the Information tab, while other times you may need to scroll down the page’s sidebar.

    Facebook changes its layout frequently, so I cannot provide an exact location for this item.

    Once you find it, click on it and access the Ads Archive.

    What you will see are all the Facebook ads currently running for that page.

    The advertising archive of the official Facebook page for Douglas Elliman real estate
    The advertising archive from the official Facebook page of Douglas Elliman Real Estate, one of the world’s top real estate agencies.
    Source: Facebook.

    Examine the older ads (the most profitable ones) and click on the call-to-action.

    You will discover the Landing Page and the free materials they offer.


    6. Analyze Their Blogs/Websites and Their Marketing Funnels

    Now you need to conduct some real industrial espionage actions.

    First, take a look at your competitors’ Landing Pages.

    • How long are they?
    • What psychological triggers are they using to drive users to action?
    • What kind of Call to Action (CTA) they use?
    • What lead magnet do they offer in exchange for emails?
    • Do they also ask for phone numbers?

    Create a list of aspects you like and find valuable for your business.

    Check if they have a blog.

    • What do they write about?
    • How often do they publish a new blog post?
    • What kind of CTAs do their blog posts have?
    • Do they also have a YouTube channel?
    • If yes, are they personally in it or do they only show product videos?

    Through this market analysis – combined with the free marketing lessons you’ll find on this blog – you will know how to differentiate yourself from your competitors, even the leaders, and you will seize a large market segment by becoming the absolute authority.

    “I’VE FOUND MANY COMPETITORS, BUT NONE WITH A LANDING PAGE, A BLOG, A YOUTUBE CHANNEL… AND NONE COLLECTING EMAILS FOR EMAIL MARKETING. WHAT SHOULD I DO?”

    This is the best situation you could hope for.

    And fortunately, it’s the same one I found myself in when I was a real estate agent.

    When I started analyzing the market, I realized that my competitors (including some agencies that were leaders not only in Forte dei Marmi but in the whole of Italy), simply advertised their properties on the usual national real estate portals and waited for someone to call them.

    Which almost always happened.

    Portals never worked for me, which is why I turned to marketing, to find new innovative methods to advertise my agency before these leading agencies could crush me and force me to close.

    So, I began applying what little I had studied from Kotler and some timid trainers who were starting to spread free strategies on the web.

    I then created all the classic marketing infrastructure with a blog, YouTube channel, and Landing Page to collect emails, and post after post (with zero competition online, I could position my blog posts at the top of Google searches), I completely transformed my way of working and started acquiring clients who wouldn’t have even glanced at me before.

    The top real estate agencies in Forte dei Marmi were the top pick for soccer players looking for villas with pools in my area.

    Then, once I created this marketing ecosystem – simple but effective because I was the only one doing it at the time – these same soccer player clients began turning to me as their first choice.

    This is the situation you should hope to have too.

    Pray to be surrounded by competitors, but none of them having a decent marketing infrastructure: with just a few dollars, you can revolutionize your industry and the future of your business.

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