The Market Chart Analysis
Category: Marketing
The market chart is a simple tool which can be used in a SWOT analysis to evaluate the market knowledge of the company’s product, the level of the market share, i.e. how many buys the product and finally how satisfied is the customer. With this tool the company gets an impression of where to intensify its efforts in order to increase the sale.
A market chart is a quadrangle which indicates the number of potential buyers of the segment. The market chart is made on the basis of the following four questions:
Size of target group
Market knowledge of the products
The market’s buying or using the products
The degree to which the market prefers or rejects the product (market preference)
Market Chart for Product A. A market chart can be used to evaluate the market share and demand for one’s product, for controlling the efficiency of one’s marketing effort, and to measure customers satisfaction of the product.
The market chart shows that 80% of the target market know Product A. Of them, 60% have tried the product, but only 20% of the customers who have tried it are satisfied.
The example shows that advertising has been efficient when it comes to spreading the knowledge of the product. However, the product does not live up to the customers expectations.
The following example shows a market chart for Product B where only 40% of the target market know product B and only 30% have bought or tried the product. However, 80% of the customers who have tried it are satisfied.
Market Chart for Product B:
In this case the company should increase its advertising with a view to using the product’s competitive advantage. In other words, a market chart can be used to evaluate the product’s
position in the target market, including:
market knowledge of the product — is the promotion ok?
the market’s buying or using the product — is the distribution ok?
the degree to which the market prefers or rejects the product — is the product satisfactory?
Similar market charts can be drawn up for the products on which a company competes the most. The information can be obtained by asking the customers. The more sure the company wants to be, the more customers has to be asked.
Market Chart for Consumer Products
For consumer products distribution or access to the product plays an important role. If the consumer cannot find the product within the area where consumer products are bought, the product is not an option, no matter price and quality.