Market Assessment

Market Assessment Methodologies - Tools and Information, 2005

    This entry provides tools and information on various market assessment methodologies, including those for assessing both product and business service markets. This list is not meant to be comprehensive, but provides some information on methodologies now in use in the development field. The methodologies are not mutually exclusive and often overlap. Terminologies among agencies often differ. We welcome suggestions for additional methodologies.

    See "Existing Market Assessment Tools, DAI 2003" on the right hand side for a list of market assessment tools with definitions.

    Practical Action has a market assessment approach called "Market Mapping" accessible here.

    For the World Bank entry on Agricultural Market and Agribusiness Assessments, click here.

    The SEEP PLP has issued a number of papers on assessing markets for programs targetting microenterprises:
    An Inventory of MA Methods for Programs Targetting Microenterprises
    Common Mistakes in MA and How to Avoid Them
    Information to Action - Tips for Using MA Info in Design and Implementation
    The Role of the Facilitator in MA and Program Design

    Summary of results
    Subsector Analysis examines the links between actors operating in the same industry and the final markets for the products of that industry. It outlines different market channels and their characteristics and driving forces. Subsector analysis can show how SEs fit into an industry and how they could potentially play a more lucrative role. To access "A Field Manual for Subsector Practitioners" from the DAI USAID GEMINI project 1991, click here. See "Capacitating Sector Analyses" by Hans Posthumus 2004 to the right.

    Value Chain Analysis is sometimes used interchangeably with Subsector Analysis. It may focus more on an individual market channel and often includes additional analytical elements beyond subsector analysis such as inter-firm cooperation, governance, and geographic coverage that extends to global markets. To learn more and access documents on value chain analysis, click here.

    BDS Market Assessment refers to the tools used to examine markets for business services. A commonly used tool is the "Usage Attitude Image Market Study," adapted from private sector marketing reseach for use in development projects. It provides a broad overview of several business service markets including market penetration, service use patterns, and expected benefits of service purchase and helps pinpoint constraints and opportunities in those markets. The "Guide to BDS Market Assessment for Program Design" by Miehlbradt for the ILO is to the right. There are also many qualitative tools for assessing BDS markets.

    The Subsector Service Market Approach combines subsector analysis and BDS market assessment into a continuous process. The Action for Enterprise guide describes the process and how it can lead to the design of a market development program.

    Product Concept Tests are used to get consumer feedback on a new product or business service idea. Several adaptations for the development field exist. "Applying Market Research Tools to the Design and Improvement of Business Development Services" by Miehlbradt and Chua for DAI/USAID describes a quantitative methodology. TTO's "Market Research Tool to Test Microenterprise Interest in New Busines Service Ideas" by Bear for SEEP describes a qualitative methodology based on focus group discussions.

    Competitiveness Analysis derives from Michael Porter's business tools. At the country level, competitiveness analyses focus on identifying and developing key industry and sub-industry clusters that offer significant opportunities for private investment and achieving sustainable comparative advantage. This tool can also be used with individual industries, value chains, clusters or regions. See "Benchmarking Competitivenss in Transition Economies" - HIID/USAID 1999, on the right hand side.

    "Participatory Appraisal of Competitive Advantage," a tool to assess and stimulate local economic development and competitiveness, focuses on a rapid appraisal of the local economy based on Porter's concept of location-based competitive advantage. "PACA: Launching LED Initiatives" by Meyer-Stamer is on the right hand side.

    Associated Activities and Documents
    Market Assessment
    »Participatory Appraisal of Competitive Advantage - Test of the Methodology in Serbia, USAID AMAP, ACDI VOCA 2005
    »Value Chain Analysis, 2007
    Synthesis Documents
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