LO LO 3.1-5 3 . 1 - 5 Data Analysis The planning process requires market research data and analyzing company sales history data. By analyzing information, an organization can more accurately identify customers, forecast sales, and better plan which products to develop. Two important analyses that help businesses make decisions include market analysis and sales analysis. Market Analysis Market analysis is the process of gathering and analyzing information about markets, customers, industry trends, new technology, and competing businesses to help plan the future for an organization. The information gained from market research is used to define target markets, learn about the needs and wants of consumers, and understand what motivates people to buy. A consumer is a customer who buys a product for personal use. Research helps identify the competition, learn about new business opportunities, and answer many other important business questions. Information provided by marketing research is also called market intelligence because it helps a business gain a competitive edge. Understanding the competition is part of a market analysis. Competition is two or more businesses attempting to attract the same customers. In order for a company to achieve its sales goals, it may need to take business away from the competition. A competitive analysis is a tool used to compare the strengths and weaknesses of a business with those of competing businesses. Strengths are factors that give a company a competitive advantage. A competitive advantage of a product or business is offering better value, features, or service than the competition. Weaknesses are the factors that put a company in jeopardy compared to the competition. In a competitive analysis, competitors are evaluated on facts such as physical locations, product lines, pricing, and market share. From this information, it can be determined how the company will compete with other companies to gain its share of sales in the market. An example of a competitive analysis is shown in Figure 3-3. Competitive Analysis Variables Your Company Competing Company A Competing Company B Competing Company C Physical Location Yes Yes No No Product Lines 5 3 6 8 Designers Well-known High-end Knockoff Knockoff and Well-known Pricing $28–$50 $40–$100 $30–$60 $20–$80 Special Order No No Yes Yes Continental US Shipping $0 $4–$6 $5 flat fee $2.99–$4.99 Market Share 7.5% 8.3% 10% 9.1% Goodheart-Willcox Publisher Figure 3-3 A competitive analysis is a tool used to compare the strengths and weaknesses of a business with those of competing businesses. l d Employability Skills Professional Image An image is the perception others have of a person based on that person’s dress, behavior, and speech. It is what people remember about a person from business, professional, and even social interactions. A professional image is the image projected by an individual in the professional world. A positive professional image projects honesty, skill, courtesy, and respect for others. Cultivating a professional image can pave the way for a successful career. Chapter 3 Planning 43 Copyright Goodheart-Willcox Co., Inc.