A market is any place where buyers and sellers interact for the exchange of goods and services. Transactions can be physical or virtual and involve commodities like goods, information, currency, contracts and ideas. Markets function in various economic contexts, from free markets where government intervention is limited to taxes, minimum wages and price ceilings to command economies where prices are determined by supply and demand based on economic factors with full government control.
Understanding your business’s market is a key step in building a brand identity that resonates with consumers and supports long-term growth. A comprehensive market research report can lift the lid on your competition’s strategies and uncover consumer attitudes toward brands, giving you a solid base of knowledge to inform your decision-making.
Identifying your market is vitally important and requires careful consideration of the demographics, needs, wants, values and habits of your customers. A thorough analysis can also reveal opportunities for your company to take advantage of trends or address gaps in the market.
Your market should also be sufficiently large to make your business viable. Don’t waste time and resources pursuing an unprofitable market; for example, the music industry was a lucrative market for Blockbuster and Kodak when they defined themselves around CDs – but the companies collapsed when MP3 technology emerged.