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INTRODUCTION
A market trend analysis is an analysis of past and current market behavior and dominant patterns of the market and consumers. An important aspect of conducting a trend analysis for an organization is to obtain insights on the market scenario, consumer preferences, and the macroeconomic environment.
INSIGHTS
A market trend analysis is an analysis of past and current market behavior and dominant patterns of the market and consumers. An important aspect of conducting a trend analysis for an organization is to obtain insights on the market scenario, consumer preferences, and the macroeconomic environment.
Marketing research methods, such as surveys, interviews, and observations of consumer behavior, help in understanding the trends and behavior in the market.
Trend analysis is a subset of the PESTEL Analysis—an examination of the political, economic, social, technological, environmental, and legal implications of the market as they relate to consumer trends. This analysis provides an all-round perspective of the external factors that impact the business.
BENEFITS
While determining future objectives for a product or service, trend analysis is used as a basis on which future market projections are made. Market trend analysis involves analyzing the following areas:
Trend analysis is a very common strategic tool for understanding the market maturity (i.e., whether the market is in a growth or decline stage) to gauge future market potential and the overall position of a business in the market.
Since market trend analysis involves understanding past market behavior and expected future market innovations, a major effort in conducting trend analysis is dedicated to collecting relevant data. The authenticity of this data determines the accuracy of the projections, which subsequently impacts the objectives set for a particular product or service.