A quick understanding of a trend analysis
At the beginning of every financial year, businesses assess their markets for growth opportunities. As a result, a company would conduct a market trend analysis to determine new objectives and future projections.
A trend analysis is a research conducted to understand various behaviours in the market.
Why trend analysis?
A trend analysis is a necessary process for developing an effective marketing strategy. Whether in a growth or decline stage, it is necessary for a business to have an all-around perspective of factors affecting its environment.
The process acts as a boost to one’s confidence when making important business decisions. Providing reassurance in a way of simulations on scenarios that are most likely to happen.
Pros and cons of trend analysis
For some businesses, it is a costly task to engage in. A business that is able to afford research is in good standing of competing in the markets.
Looking at the advancement of marketing research in South Africa. It is, therefore, challenging to obtain tailored information that is directed to a specific subject. Many small businesses rely on general information published by various institutions in different industries. Such data has created a gap which subsequently impacts their decision-making process.
Of course, there are alternative methods available for conducting research. Methods may include interviews, surveys or perhaps alternative third-party data.
In contrast, a typical research conducted can focus on political, economic, social, technology, environment and legal factors which are directly or indirectly affecting the business.
In marketing, PESTEL is used as a definition that lays out the different pillars of research. It is a common strategy which simplifies the necessary approach when initiating the research process.
A thorough research, gives way to the authenticity and relevance of the collected data, therefore putting it into real perspective. We have looked at the PESTEL and made a list of alternative ways that we think small businesses may use as a means of conducting the desired research.
- Start conversations on social media by creating surveys and polls;
- Join industry forums and events;
- Engaging clients as a source of feedback;
- Involve yourself with industry influencers and collaborate to gain insights;
- Read articles in the Business Press;
- Conduct telephone interviews;
In closing, companies may analyse trends in terms of product innovations, or perhaps competition. Therefore, the above-mentioned methods add in as alternatives. There are various techniques available as methods of collecting data.
Should you like to get help with a trend analysis? Leave us a comment below or send us an email, we are ready to help.