[GTM glossary](/glossary.txt) Market analysis Market & Targeting # Market analysis In short Market analysis is the process of studying a market to understand its size, who buys, who competes, and which trends shape demand. Its purpose is to support a decision, such as entering a segment, pricing a product, or setting a sales target. It is broader than competitive analysis, which looks only at rivals, and broader than market sizing, which only estimates the revenue pool. Market analysis combines them with customer and trend research. ## What a market analysis covers ### Market size and growth How many potential customers exist and how fast the pool is growing or shrinking. A bottom-up count of target accounts is usually the most credible approach for B2B. ### Customer segments Who buys, why, and how needs differ across segments. This feeds your ICP and segmentation work. ### Competitive landscape Who else serves these buyers, how they position, and where gaps exist. ### Trends and risks Regulation, technology shifts, and budget changes that can open or close demand. --- ## How to run a market analysis * **Start with a decision:** Write the question first, for example "Should we open the German market?" * **Gather evidence:** Combine company data, customer interviews, win and loss notes, and public sources. * **Size and segment:** Count target accounts and group them by fit so you can compare segments. * **Conclude with an action:** End with a recommendation and the numbers that would change it. --- ## Example Say a team is deciding between two segments. It counts accounts matching its ICP in each, estimates deal size from current customers, reviews win rates in similar deals, and compares the result. The segment with fewer accounts but better win rates might still be the better first bet. The figures would be the team's own, not benchmarks. --- ## Common mistakes * **Analysis without a decision:** A report that answers no question gets filed and forgotten. * **Top-down only:** Slicing an industry report gives a number but not a list of reachable accounts. * **One-time exercise:** Markets move. Refresh the work when assumptions change. --- ## Market analysis FAQs **What is market analysis?** Market analysis is the study of a market's size, customer segments, competitors, and trends. Teams use it to decide whether to enter a market, which segments to prioritize, and how to position and price their product. **How do you do a market analysis for B2B?** Define the decision you need to make, count target accounts bottom-up, segment them by fit, review competitors and buyer needs, and conclude with a recommendation. Update it when assumptions such as pricing or product scope change. **What is the difference between market analysis and competitive analysis?** Competitive analysis studies rivals only: their products, pricing, and positioning. Market analysis is wider and also covers market size, customer segments, and trends, with competitors as one part of the picture. **What should a market analysis include?** It should include market size and growth, customer segments and their needs, the competitive landscape, key trends or risks, and a clear recommendation tied to a decision. Each claim should rest on data you can point to. Share term --- ## More related phrases * [Market research](/glossary/market-research.txt) * [TAM analysis](/glossary/tam-analysis.txt) * [Market intelligence](/glossary/market-intelligence.txt) ## Similar phrases * [Target market](/glossary/target-market.txt) A target market is the group of companies a business has chosen to sell to, selected for fit, size, and reachability, and narrower than the total market that could use the product. * [Market segmentation](/glossary/market-segmentation.txt) Market segmentation is dividing a market into groups of buyers with shared traits or needs so each group can be targeted with its own messaging, offer, and sales approach. * [Market sizing](/glossary/market-sizing.txt) Market sizing is the process of estimating how many potential customers exist for your product and how much revenue they represent, so you can choose where to focus. * [Total addressable market (TAM)](/glossary/total-addressable-market.txt) Total addressable market (TAM) is the total revenue available if every possible customer for your product bought it. * [Competitive analysis](/glossary/competitive-analysis.txt) Competitive analysis is a structured review of rival companies, their products, pricing, and positioning, used to sharpen your own strategy, messaging, and sales approach.