What is market analysis? Definition, examples, and template

Product management involves numerous processes and frameworks, with market analysis being a crucial initial step to ensure the success of new products or services. Effective market analysis provides insights into product-market fit by conducting thorough research and competitive analysis, which can lead to successful product launches and informed strategic planning. Understanding the target market and potential customers is vital, as it helps in crafting a strong product strategy and avoiding costly missteps. The analysis involves identifying industry trends, defining opportunities, assessing target demographics, calculating market size (TAM, SAM, and SOM), and evaluating competition to make informed decisions and reduce risks. The article emphasizes the importance of understanding market dynamics and competitive landscapes to position a product wisely and offers a free template to guide users through the analysis process. LogRocket is highlighted as a tool that aids in generating product insights and simplifying workflows across teams.