Market Analysis For Investors

Understanding all of the economic activity in a particular market takes considerable amounts of research that investors and businesses conduct known as market analysis. Whether they’re looking at overall market share to determine the most competitive businesses in a market, or customer market research to determine customer segments and various buying patterns, market researchers have long relied on this information to make more accurate investment and business decisions. 

Data analytics solutions have amplified the value of market analysis information for investors by providing them unique and timely insights into market data previously inaccessible to them. 

What Is Market Analysis?

Market analysis is the process of determining the total volume and value of a particular market by quantitative and qualitative assessment. By having an understanding of various aspects of the market, such as market share, customer segments, competition, and economic trends and regulations, asset managers are more capable of making sound and accurate investment decisions. 

If a business wants to explore expanding its operations into a new market, it needs to understand the market’s full picture so they can determine where they can add value to gain market share and which customer segments are necessary to successfully grow their business. 

Meanwhile, traders use market analysis to understand the economic trends and patterns so they can make long and short term investment decisions backed by real market data. Using historical data, traders can make predictions about how markets are expected to react to different economic conditions or changes in market activity, and determine stock values. 


What Is Market Share and Why Is It Important?

A company’s market share is its sales measured as a percentage of an industry’s total revenue. Companies calculate their market share by dividing their own total sales or revenues by the industry’s total sales over a specific fiscal period. 

How Investors Use Market Share

Investors look at market share to evaluate a company’s competitiveness within a market. Companies focused on growing their market share will grow revenues faster than their competitors, indicating for investors that the company’s strategy is aligned for continued market growth.. The always changing market share means there are constantly new inputs that can be used to expand an investment managers’ market analysis. 

With investor data solutions, market share information can be accessed faster and at a more detailed geographic level than ever before. Waiting for companies to file quarterly or annual reports is no longer needed to work with the most up to date market share information, so more rapid adjustments and decisions can be made around the clock, ensuring market analysis is accurate as possible.  

How Corporations Use Market Share

For corporations, market share can be used to conduct consumer research to better understand their target market and competitors. By understanding where their company is within a market, they can develop a strategy to expand their market share. 

Corporate data solutions help companies extend how they calculate their market share, and deliver more specific information about markets like regional and local level data. The more the market can be understood on a granular level, the stronger the company’s market share expansion strategy can be. 

How Investors Can Use Market Analysis To Drive Decision Making

Since market analysis reveals the key competitive players in a market, customer segments, buying patterns, and various other economic factors, investors can use the information to conduct more informed and accurate evaluations of businesses to determine if they’re worth investing in or not. 

If the market analysis comes back to reveal an extremely competitive market with multiple businesses expanding their revenues at once, investors can use the information to make predictions about how market share may look in the future. Thanks to data analytics, market analysis can be monitored more closely and effectively so decisions can be made much quicker and more frequently than ever before. 

How Do You Analyze Market Share?

To conduct a market analysis, researchers need to take into account the following inputs to enable competitive insights:

  • total market size
  • market growth rate
  • market share
  • market segmentation
  • key players

Understanding these inputs has been the fundamental way investors gain insight into different markets. The data used to determine market sizes, growth rates, and more have always been delayed in being publicly available through company filings, but using data analytics to conduct market analysis enables businesses to work with the most up to date market data out there, so relying on assumptions and estimates is taken out of the equation

What Is Customer Market Research?

Customer market research is used to better understand spending behaviors among consumers in a particular market. The research focuses on quantitative data such as buying patterns or seasonal trends, and more qualitative data from online surveys or focus groups which businesses use to better understand their customers. 

Every business has their own target market, and breaking into a new market requires finding the opportunities to satisfy and exceed customer expectations over competitors is key to success. Customer market research makes that possible for businesses, and can be monitored more closely and accurately through data analytics solutions. 

Using Market Analysis For Investing

Market share and consumer market research can help investors identify the right securities to invest in using market research data. By seeing which companies are trending upward or falling behind in comparison to the rest of their sector, investors can validate their investment strategies or predict market trends in a timely manner. 

Managing risk can be done more frequently and effectively so investors always know where their securities stand, and adjustments can be made appropriately.


Market Share Trends and Analysis From Envestnet | Yodlee

Investors who want to enhance their market analysis capabilities can look no further than Envestnet | Yodlee - a market leader in data aggregation and data analytics solutions. With Envestnet | Yodlee’s ready-to-use data, investors can access timely, unique, and accurate market insights, as well as spending and income data analytics to start better managing investments on behalf of their customers. 

Through Envestnet | Yodlee’s data promise, all data provided is de-identified to protect consumer privacy. Investors can gain comprehensive consumer spending trends and income data analytics to further inform their market analysis, and use their unique and accurate market visibility to manage their investments knowing it's backed by security compliant and  near real-time data.