Section III. Analyze: Growth and Profit Potential

“We are drowning in information, while starving for wisdom. The world henceforth will be run by synthesizers, people able to put together the right information at the right time, think critically about it, and make important choices wisely.”

—Edward O. Wilson

The outcome of doing the research outlined in the last section, as well as the research you discover throughout this process, is a new perspective on your market opportunity. You should now understand your target market, factors that influence buyer behavior, and market drivers that impact your business.

With this knowledge, you will now analyze this information with several other subjects before you develop marketing strategies. You will analyze your pricing strategy relative to competitors and consumer buying criterion. An analysis of revenue and profitability by product and/or services will enable you to make better decisions based on the target profit levels you would like to achieve. You will also evaluate new distribution channels that give you access to your target market, as well as new buyers. Perhaps the most important part of this chapter is the new perspective and business growth you can achieve from disruptive innovation. The analysis phase of the process allows you to:

• Analyze your pricing strategy and find new opportunities for increased profitability.

• Identify complementary products to expand revenue and new market growth.

• Evaluate substitute products to determine how they may be a threat—or a new opportunity to capture new customers.

• Analyze the best distribution channels to reach your customers.

• Evaluate the profitability of your products and services.

• Develop new growth opportunities by creating greater differentiation and value for your solutions.

Each topic in this section builds upon the next so when you finish this section, you will have completed all the foundational work to create effective marketing strategies and tactics.