the most common mistakes in analysing the market and how to avoid them

table of contents:
introduction
not collecting enough data
ignoring competitor analysis
targeting a market that is too broad
relying on assumptions instead of data
neglecting future market trends
ignoring external factors affecting the market
not testing the idea with the target audience
ignoring existing customers
misjudging the size of the market
ignoring customer buying behaviour
relying too much on digital data
ignoring indirect competitors
failing to measure marketing impact
relying on unreliable data sources
failure to take local culture into account
introduction:
analysing the market is one of the main pillars that underpin the success of any business or new product. by studying the market, opportunities and challenges can be identified and strategic decisions can be guided towards success. however, many entrepreneurs may fall into the trap of common mistakes that can negatively impact the results and direction of the analysis. in this article, we look at the most common mistakes and how to avoid them, to ensure accurate and useful data to help you make informed decisions.
1. not collecting enough data
mistake:
limited or incomplete data on the target market.
example: relying on outdated or out-of-date data when analysing market trends.
how to avoid it:
use multiple sources to gather data, such as market reports, surveys, and social media.
constantly update the data to ensure it is accurate and relevant to the current market.

2. ignoring competitor analysis
the mistake:
not studying competitors thoroughly and ignoring their strengths and weaknesses.
example: entering a crowded market without offering a clear competitive advantage.
how to avoid it:
conduct a thorough analysis of competitors to know their strategies and the level of customer satisfaction.
focus on providing added value that differentiates your product or service from the competition.

3. targeting too broad a market
the mistake:
trying to target everyone instead of a specific market segment.
example: marketing a product without understanding the age range or needs of the target audience.
how to avoid it:
segment your market based on age, income, interests, and geographic location.
design customised marketing strategies for each segment.

4. relying on assumptions instead of data
the mistake:
making decisions based on personal expectations or unexamined assumptions.
example: assuming that a product will be a success because it is “unique” without testing the idea with an audience.
how to avoid it:
rely on reliable data and evidence-based analyses before making any decisions.
conduct field tests or surveys to gather real customer feedback.

5. neglecting future market trends
the mistake:
focusing only on the current state of the market without looking at future trends.
example: offering a traditional product in a market that is rapidly becoming digitised.
how to avoid it:
follow economic and technical reports to understand future trends.
adapt your strategies to meet changing market needs.

6. ignoring external factors influencing the market
the mistake:
not taking economic, political or social factors into account while analysing.
example: ignoring the impact of inflation or regulation changes on demand.
how to avoid it:
include external factors in the analysis such as economic, political and environmental conditions.
be prepared to adapt to any external changes that may affect the market.

7. not testing the idea with the target audience
the mistake:
launching a product without making sure it meets the needs of the target audience.
example: introducing a product with a design or features that customers don’t like.
how to avoid it:
conduct surveys, interviews, or field tests with a sample of the target audience.
use their feedback to improve the product or service before launch.
8. ignoring existing customers
the mistake:
focusing solely on attracting new customers without understanding the needs of existing customers or what they think of the product.
example: not studying the behaviour of existing customers to see what can be improved or added.
how to avoid it:
collect continuous data from existing customers through post-sales surveys and feedback.
analyse customer satisfaction and look for ways to boost loyalty.

9. misjudging the size of the market
the mistake:
overestimating or underestimating the size of the target market, leading to ineffective marketing plans.
example: rapid expansion into a small or limited market.
how to avoid it:
use accurate and reliable data to calculate realistic market size.
include factors such as the number of potential customers and growth potential.

10. ignoring customer buying behaviour
the mistake:
not analysing how customers make purchasing decisions or the factors that influence their buying behaviour.
example: not recognising that customers prefer discount offers when buying a product.
how to avoid it:
study the customer buying journey, from research to purchase decision.
analyse motivating factors such as price, quality, or customer service.

11. relying too much on digital data alone
the mistake:
ignoring field research and customer interviews in favour of analysing only digital data.
example: not exploring real customer needs through direct interaction with customers.
how to avoid it:
integrate digital data with field research to gather comprehensive insights.
conduct in-person interviews or workshops with your target customers.

12. ignoring indirect competitors
the mistake:
focusing only on direct competitors without considering companies that offer different alternatives.
example: focusing on traditional furniture companies and ignoring companies that offer sustainable furniture.
how to avoid it:
analyse all the alternatives that customers might consider.
look for opportunities to offer additional benefits over alternatives.

13. failing to measure the impact of marketing
mistake:
not tracking the performance of marketing strategies to see how effective they are.
example: not measuring the results of an advertising campaign to determine if it is achieving its goals.
how to avoid it:
use performance analytics tools such as Google Analytics to evaluate the effectiveness of campaigns.
adjust strategies based on data to optimise performance.
14. relying on unreliable data sources
the mistake:
collecting data from inaccurate or unreliable sources leading to false conclusions.
example: using outdated statistics or information from sources that don’t specialise in your target market.
how to avoid it:
rely on reliable data sources such as government reports, academic studies, or reputable research companies.
validate data by comparing it with multiple sources.

15. not taking local culture into account
the mistake:
ignoring cultural differences and local customs that may affect the acceptance of a product or service.
example: launching a product that contains ingredients that are culturally undesirable in a particular region.
how to avoid it:
study the local culture and customs of the target audience to understand their preferences.
customise products or services to suit the local culture.

valeo’s role in driving business success
valeo is is a leading provider of feasibility studies and business solutions, offering comprehensive strategic support that helps businesses make informed decisions from concept to implementation. valeo uses rigorous analysis methodologies to ensure that all decisions are backed by data, helping to identify successful business opportunities and steer projects onto a sustainable and profitable path.
by providing comprehensive feasibility studies, Valeo assesses the viability of projects from all perspectives, including economic, technical, environmental and social. the company endeavours to ensure that the project will generate the desired returns and effectively serve the target market, while identifying the factors influencing the success of the project and providing innovative solutions to potential challenges.
valeo also provides integrated business solutions that include designing effective financial and marketing strategies, as well as analysing market and competitor needs. this enables companies to strengthen their competitive position and expand into new markets.
ultimately, Valeo ensures that the businesses it mentors benefit from continuous guidance and invest in strategic analysis to achieve sustainable success.

in an increasingly competitive and ever-changing business world, relying on effective business cases and business solutions is essential for sustainable success. by partnering with Valeo, businesses and investors can ensure they get the most out of their investments through deep analysis based on accurate and reliable data.
valeo helps identify opportunities, address challenges, and steer projects towards sustainable success through its comprehensive, science-based solutions. choosing Valeo as a strategic partner is a step towards building solid, successful, and differentiated projects in the market.
if you are looking to develop your project with confidence and ensure its feasibility and success, do not hesitate to contact us via WhatsApp or call us for professional consultations that support you in making your financial and business decisions wisely.

read also: how to analyse the market before launching a new product.