If the firm is seeking external funding, market analysis tends to be a critical procedure to convince the external parties that the new idea has hard numbers and facts to reinforce it. .
It is recommendable to develop a product plan, especially when launching the item for the first time. Even if the organization does not intend to seek any financial assistance from third parties, it is imperative to put in place a clear operating strategy. Market analysis is the best practice for successful product plan and also the best reason to develop one (Wu 2012). If financial institution and investors are expected to lend money, a market analysis is necessary as the stakeholders might demand to understand whether the given product has a feasible market appeal. Whichever the case, a solid product plan complete with marketplace analysis will be invaluable. The management must identify the potential clients and attract investors. Such a move will assist the organization to clearly outline the intended goals. Research has shown that the time and money spent on research and planning eventually come back to the organization a couple of times over in money earned and disappointments are avoided as well (Puntaier 2010). Such a management team appears professional and tends to outshine the other market players who fail to develop new product plan. A market evaluation might be a measuring stick that firms utilize overtime to determine how far the firm has come and it permits the management to make forecasts based on data and statistical records rather than assumptions and mere guesswork. Since the firm acknowledges the challenges it is likely to face, it can pace itself and prevent difficulties in the future (Puntaier2010). The market review should encompass the overview of the sector, evaluation of the target market, assessment of the competition, review of the firm's projections and scrutiny of any guidelines that ought to be followed.
