What is market opportunity
Market opportunity is the potential size of your market and sales, estimated by analyzing the desirability of a business opportunity . Market opportunity analysis is a systematic process used to identify and assess market opportunity for a business . It involves understanding the size and potential profitability of your target market, in order to make more informed business decisions . Market opportunity is an untapped market potential that helps businesses leverage unexplored markets, and is a way of assessing which market opportunity are relevant to your business at its current stage. A marketing opportunity is a qualified sales lead who a sales team reviews and identifies as someone in potential need of a product or service.
Market opportunity analysis VS market research
Market opportunity analysis and market research are terms that are often used interchangeably but are distinct in their approach and execution. Market opportunity analysis focuses on potential opportunities in the marketplace, while market research is the process of collecting and analyzing data to understand customer preferences, target markets, and industry trends.
Market opportunity analysis is an overall assessment of the potential of a product, service, or market. This analysis typically involves an analysis of the current market, competitors, potential customers, pricing, and other factors. It requires a deep dive into customer needs, buying patterns, and competition. Through this analysis, businesses can identify potential market opportunity and target the right market segments.
Market research, on the other hand, is the collection and analysis of data to understand customer preferences, target markets, and industry trends. Data can come from surveys, interviews, focus groups, competitor analysis, industry reports, and other sources. Market research helps to create customer profiles and segmentation, gain an understanding of the competition, and identify the most effective strategies for reaching the target market.
Ultimately, market opportunity analysis and market research both serve an important purpose in helping businesses identify and capitalize on potential opportunities in the marketplace. Market opportunity analysis provides an overall assessment of the market, while market research gathers data to gain a better understanding of customer preferences and industry trends.
How to make market opportunity?
Making a market opportunity requires a thorough understanding of the current market landscape and what other businesses are doing in the space. You must also consider the customer base and what they are looking for in terms of products and services.
Here’s a quick guide on how can identify new market opportunity:
1. Prepare for market opportunity
- Build a customer base
To prepare for market opportunity, it is essential to build a customer base. This involves collecting data on customers’ needs, preferences, and spending habits. It is also important to continue collecting customer feedback by setting up surveys and engaging with customers online.
The customer data accumulated along with the business operation is the most authentic and cost-effective customer data. We need to obtain and structure current customer data as much as possible. Sources of historical user data include online store, customer service marketing activities, offline store collection, social media subscriptions, etc. We need to continuously supplement customer label information, including demographic labels, geographical labels, values/psychological labels, purchase behavior labels, browsing behavior labels, interactive behavior labels, customer conversion path technical equipment labels, customer Demand label, customer value label, B2B industry label and enterprise label, etc. Smart VOC tools can help us automatically identify voice from different sources and realize smart tagging.
- Continue collect customer voice
Collecting customer voice can be done in a variety of ways, including social media listening, focus groups and interviews, surveys, email chat and call data, NPS, customer reviews, and blogs and forums.
Social media listening involves tracking customer conversations and comments on social media platforms and analyzing them to gain insights into customer sentiment. Focus groups and interviews involve gathering a small number of representative customers face-to-face or virtually, to discuss their experiences and opinions. Surveys involve gathering customer feedback and opinions by sending out a set of structured questions to a larger sample group.
Email chat and call data can be gathered by collecting customer conversations and inquiries through email, chat, and call services. NPS (net promoter score) is a measurement of customer loyalty, which can be found by asking customers to rate their experience from 1 to 10. Customer reviews provide insight into what customers think of a product or service, and can be found on a variety of platforms. Finally, blogs and forums can provide a natural space for customers to voice their opinions and experiences, which can be tracked and analyzed.
- Build a product and competitor base
In addition, it is necessary to develop a comprehensive database on products and competitors. This involves researching and monitoring product information and competitor activities. This allows for a better understanding of the market and better decision-making. Furthermore, it is important to stay up-to-date with the latest industry trends and developments in order to stay competitive.
It is also important to develop a marketing strategy that will allow a business to stand out in the market. This involves researching potential customers, studying the competitive landscape, and determining the best promotional tactics to use. Additionally, businesses should use a variety of digital marketing strategies to reach the right audience, such as SEO, PPC, and social media marketing.
Overall, building a customer base, collecting customer feedback, and creating a product and competitor base are essential steps to take when preparing for market opportunity. Developing a marketing strategy, staying up-to-date with the latest industry trends, and using digital marketing tactics are also important for success in the market.
2. Customer research of market opportunity analysis
Customer research is a key part of market opportunity analysis. It enables you to gain a deep understanding of the needs, wants, and buying habits of your target audience. By taking the time to get to know your target market, you can gain valuable insights into why they purchase certain products or services and how you can better serve them. For example, list the future development trend of the global headphone market
- Identify market size and growth
Market size and growth are important aspects to consider when conducting market opportunity analysis. A market’s size and growth can provide insight into the potential for success, as well as the level of competition that may be encountered. Here are some steps to identify the size and growth of a market:
- Gather data on the market. This includes primary and secondary research. Primary research is direct interaction with the market, such as surveys, interviews, and focus groups. Secondary research is collecting data from existing sources, such as industry publications, reports, and statistics.
- Analyze the data. Look at trends in the data to identify the size and growth of the market.
- Identify key performance indicators (KPIs). These are indicators that measure the performance of the market, such as the number of customers or units sold.
- Monitor market activity. Look for changes in the KPIs to monitor the growth of the market.
- Identify market share in each region
Market opportunity analysis is the process of analyzing a particular market to identify potential opportunities and threats. To do so, one should take into account the market shares of the various players in each region, as well as any current trends, both positive and negative, in the market.
Data collection and analysis are the most important steps in the process. First, market share data should be collected for each region or market segment. This data can come from a variety of sources, including government data, research reports, surveys, and industry reports. Once the data is collected, it should be analyzed to understand the current trends, both positive and negative, in the market. It may also be necessary to look at the market shares of different players in a particular region to determine their relative strengths and weaknesses.
Once the data and trends have been collected and analyzed, the next step is to create a thorough market opportunity analysis. This should include a thorough assessment of the market size, the target customer base, the competitive landscape, and any potential barriers to entry. Additionally, a market opportunity analysis should include an assessment of the potential growth opportunities and how to capitalize on them. With this information, companies can create and implement effective strategies to capitalize on the market opportunity.
- Segmenting the customer
The first step of customer research is to identify your target market. This involves gathering demographic information such as age, gender, income level, and education level. You can also use survey tools and focus groups to gain further insight into your target market.
Once you have identified your target market, you can move on to the next step of customer research: collecting data. This involves gathering data from sources such as customer reviews, industry reports, or competitor analysis. Collecting data helps you gain an understanding of the current market conditions, consumer trends, and potential opportunities.
Finally, you can analyze the data you’ve collected to gain insights into the market opportunity. This involves looking at the data from various angles and identifying patterns that could indicate a potential opportunity. Once you have identified potential opportunities, you can develop strategies to capitalize on them.
In summary, customer research is a critical part of market opportunity analysis. It helps you gain a deeper understanding of your target market and identify potential opportunities. Ultimately, the goal is to use the data you’ve gathered to develop effective strategies to capitalize on the market opportunity.
3. Technology research of market opportunity analysis
Understanding the technology landscape and the current market opportunity is essential for a business to be successful. Technology is constantly evolving and with it come new opportunities for businesses to capitalize on. Market opportunity analysis focuses on identifying those opportunities and quantifying their potential.
- Understand basic technical requirements
The first step in market opportunity analysis is to research the technology landscape. This means understanding what technologies are available, what they are used for, and which ones have the most potential. It also means understanding how these technologies interact with one another, and what impact they have on the market.
Next, a business should use the data gathered in the technology research to assess the potential of their product or service in the current market. This involves assessing the competition, the customer base, and understanding how the product or service will fit into the current market.
- Identifying future innovative technologies
Finally, the business should use the data gathered in the technology research and market opportunity analysis to form a strategy for how to best capitalize on the market opportunity. This may involve creating a new product, expanding to new markets, or updating existing products to better fit customer needs. For example, use Gartner Hype Cycle
Technology research and market opportunity analysis provide businesses with the insights they need to find success in the ever-changing technology landscape. By gathering the right data and forming the right strategy, businesses can capitalize on the opportunities they find and expand their reach.
3. Market research of market opportunity analysis
Competitive analysis is a critical part of market opportunity analysis. It is important to identify existing and potential competitors, analyze their strategic intent and strategies, and identify their strengths and weaknesses. A typical competitive analysis process consists of the following steps:
- Identify existing and potential competitors
Identifying existing and potential competitors. It is important to identify all potential competitors who could impact the market, including both direct and indirect competitors.
- Analyze competitors' strategic
Analyzing competitors' strategic intent and strategies. Once the competitors have been identified, their strategic intent and strategies should be analyzed in order to assess the competitive landscape. This can include looking at their product and service offerings, pricing, promotional activities, and other aspects of their business.
- Identify competitor strengths and weaknesses
Identifying competitor strengths and weaknesses. This involves looking at various factors, such as their financial performance, market share, customer base, and geographic reach. It is also important to consider their brand image, marketing tactics, and other intangible factors.
By doing this, it is possible to get a better understanding of the competitive landscape and identify opportunities to differentiate and gain a competitive edge.
Use VOC tool for opportunity
1. Use VOC as customer database
The VOC tool is the only tool that can completely associate products with customers and analyze data from the perspective of user experience. Many e-commerce platforms do not provide us with real customer data, but this does not affect our customer analysis and market opportunity insight. Because we need the feedback of consumers on these platforms, and obtain the real needs and expectations of customers from the feedback. Using VOC as a user database is not to create personal files for consumers from the perspective of consumers. Instead, it aggregates all consumer data from the perspective of products and brands, including consumer portraits, consumer needs, consumer expectations, consumer complaints, and their purchase motivations and usage scenarios.
2. VOC help you monitor customer voice
With the multi-channel operation of enterprises, more data will need to be integrated into VOC. We can see that consumers' active search behavior on search engines, multi-experience service applications, omni-channel global marketing, and the drainage of self-media and paid media are all important measures for future enterprise development.
Comprehensive consumer voice collection and monitoring should include e-commerce platforms, evaluation websites, social media, customer service work orders, online research, and offline collect.
On the other hand, monitoring also requires dynamic reminders and early warnings. VOC can monitor product stars and negative reviews from customers from the perspective of word of mouth. In other words, VOC can help our products maintain a good reputation and evaluation online at all times.
3. Customer portraits are more realistic in VOC
The essence of product is the positioning of target groups. With intelligent AI parsing, we can clearly know who they are, when/where/how do they use products? Then through the further aggregation of keywords, we can see the purchase motivation, product concerns, information sources and so on of different customer groups, thus deducing a clear matrix of product positioning and consumer groups. In a clear portrait of consumer groups, we find the best answer for product design, marketing plan, traffic channel and content creativity.
Market opportunity for Amazon business
1. Use marketing tools to derive sales
We have no way to obtain the real sales of competitors on Amazon, but now there are many marketplace optimization tools that can help us derive them, such as jungle scout. Basically, the sales models of these marketplace optimization tools rely on product category rankings, keyword search rankings, review volume, and even the volume of goods entering and leaving FBA warehouses and customs data to push. If it is used to analyze category sales data, the calculation results are basically accurate. But for new or small categories, the data is not timely and accurate enough.
2. Using VOC to Identify Product Opportunities
VOC help you Integrating voice data into a tag library of lean category management; then building insight on the entire chain of enterprise commodity management. By building a user experience tag library, we can analyze user profiles, usage process, purchase process, experience and scenarios from the user's perspective. Create real relation between products and consumption scenarios and use scenarios, get product issues, requirements, and opportunities. The purchase motivation of consumers can guide us to establish the competitive selling points of products. The expected needs of consumers can help us find new product opportunities in the future.
You can free try Shulex VOC.
Best practices in market opportunity
From June 2005 to 2022, craft super seller Etsy went from a concept to nearly 14 billion in sales (in 2021), including more than 4 million sellers and almost 40 million active buyers.
Now, Etsy is a publicly-traded Nasdaq company (ETSY) with a $13 billion market cap.
HKey Takeaways from Etsy:
- Having a keen sense of market needs can lead to initial traction and validation.
- One of the best ways to see growth in a new online business is to promote it through physical events to the public.
- Provide the right tool(s) and network with key players (that have an audience that needs your stuff).
- Figuring out ways to empower users to become brand ambassadors is a key to long-term and sustainable growth.
Large amounts of growth are possible at every level. Strategies may change, and teams may grow, but organized experimentation, failing fast, and setting up processes will help you succeed.
If you want to create a company that attracts investors like a bug zapper on a front porch, listen to stripe’s story.
A couple of guys (with previous success) managed to create an online payment processor that attracted the attention of the guys who made one of the first (PayPal).With a current market cap of more than $94 billion, Stripe processes billions more every year.
- Addressing Elephants: While payment processors existed, they were incredibly cumbersome.
- Connectivity and customers were growing at a far greater rate than the ability to take payments. This obvious problem led the three founders to have a simple goal, make it easy for ecommerce businesses to take payments.
- Being Different: Figuring out the frustration of other popular processors (PayPal, Google), Stripe was able to develop a platform that was business friendly.
- Features that set them apart included the ability for customers to stay on the seller’s site for the entire transaction, and reducing backend features that were confusing and difficult to navigate.
- Close Customer Base: Stripe used its surroundings to find it’s first loyal customers. Since the company was part of a community of companies from an incubator, they were able to use that as leverage (most of them needed a payment processor).
- Organic Growth: The product spoke well to online business owners and received incredible word of mouth exposure during it’s early days.
- To accelerate this advocacy, stripe sent care packages, including shirts and stickers, to developers who used the product. There were also meetups and community events that fostered loyalty.
- Constant Improvement: Stripe knows who their customers are and have continuously created new solutions for developers to keep them happy and talking.
From offering specialized support for all popular programming languages, to adding new features, there is always a better stripe in development. They’ve even begun to tackle mobile payments which almost ensures more growth in the coming months.