What Is Market Research Industry Analysis?

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  • Written By: Esther Ejim
  • Edited By: Kaci Lane Hindman
  • Last Modified Date: 14 December 2018
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The market research industry analysis entails the studying of the various factors that may affect the marketing industry in either a positive or negative manner. Such an analysis is usually comprehensive and involves various factors like the study of the ease of entering into the industry, the type of structures in place in the industry, the rate of competition, and the relationship that exists between related businesses and the customers. It will also involve the study of the type of leverage that those in the business have in terms of their ability to exert some sort of influence in negotiations with customers and even employees.

One of the first considerations in a market research industry analysis is to determine the type of structure that exists in the industry in relation to the effect it has on prospective entrepreneurs and the various marketing professionals. This includes a study of the type of environment that exists in the marketing industry. Prospective entrants must weigh the cost of setting up their own businesses, including the ease with which they can obtain financing through loans or other forms of start-up capital. They must also examine the types of laws and regulations in place that may serve as a limiting factor for new entrants or for already established organizations to thrive.


Another important factor in a market research industry analysis is a study of the type of competition that exists in the industry, because this might affect the ability of the company to show an appreciable profit. When an industry is over saturated, some organizations in the industry might have the tendency to resort to underhanded methods due to the high level of competition. The number of organizations that offer related products also affect the company in terms of capital input due to the fact that it must invest more heavily in advertising and promotion in order to be heard among so many voices.

Customers play an important role in the success or otherwise of a business, but a situation where the customers have an undue advantage over the organizations may tilt the scale of balance in favor of the consumers. Too many choices is a factor that may affect the way consumers and organizations relate. This is due to the fact that such organizations may make some detrimental compromises in their quest to obtain and hold on to their customer base. The market research industry analysis must also include a study of the suppliers, including the marketing professionals who supply the talent and human capital.



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