Provide a summary of how to do a market analysis. This should include identification of key elements of a PESTLE analysis and a TOWS analysis using examples to illustrate key points.
Date of entry 1/7/2016
In order to orchestrate yourself to perform thorough market analysis you should break your chosen product into two sections: PESTLE analysis and TOWS analysis. Then breaking these sections down further into six parts for PESTLE and four sections for TOWS. By doing this it should make further marketing decisions clearer to see. To help explain these market research methods I will be using Tinder as an example.
PESTLE Analysis For Tinder
Political – Tinder must recognise that some governments around the world will not agree with the social interaction which tinder provides as it goes against those countries’ moral values. For example Khalaf, H(2015) explains how some Islamic states are not comfortable promoting such apps. By recognising this they can be sensitive and understand that Tinder cannot penetrate those markets, therefore saving themselves time and money.
Economic – Tinder is available to two bands of consumers: thirteen to seventeen year olds and eighteen and above. Tinder must enhance its ability to attract a younger demographic as well as an older grouping to keep growing, therefore advertising must be a prioritised looking at the economic side of the business.
Social and Technological – One can see that the dating world has evolved massively with the change to technology, many people prefer to meet online first instead of the older and more conventional way of a blind date or speed dating. Tinder will need to galvanise this technological boom and use it to their advantage by connecting with their consumer through their smartphones. This graph shows that smartphone usage is only going to continue to increase.
Legal – Huynh, T(2015) states that Tinder must recognise that legally there are some flaws in their security which can lead to legal disputes and ultimately the safety of their customers. These security issues will have to be ironed out to keep their current consumers and encourage new subscribers.
Environment – An awareness of your competitors is key in this section as you must understand their benefits, drawbacks and the features that they provide which are different. For example, Tinder’s main competitors are Happen, Bumble and Hinge. They provide unique services such as a timer on your conversation working as a catalyst, matches more suited to your daily routine and a friend of friend match.
TOWS Analysis For Tinder
I would tackle this by first making a column for the strengths and weaknesses of your chosen product. Once completed this would enable you to pick clear selling points and failings in your product. Recognising these then use two more columns, labelled Opportunities and Threats, to access how you can improve your product from the identified strengths and weaknesses. For example, Tinder has a unique selling point of its simplicity to use, the superlike and rewind features, so these can be taken forward. However the threats would be that its security has loop holes which will need to be adjusted to obtain a bigger target audience , and its competitors have some unique features which effectively provide a different service.