Î the market analysis is driven by clear objectives

Î The market analysis is driven by clear objectives and key questions within a delineated scope.
Î The market analysis includes an assessment of overall market functionality.
Î The selection of critical markets is driven by the identification of household needs and vulnerabilities.
Î The different needs, strengths and vulnerabilities of all target groups are used to determine the scope of
the assessment.
GUIDANCE NOTES
The sequence of action: At the onset of a market analysis, several steps need to be undertaken. This process
is iterative: several steps can happen at the same time, and you may need to go back and forth between the
different steps. See the proposed sequence in Figure 4 .
C

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MINIMUM STANDARD FOR MARKET ANALYSIS (MISMA)
Figure 4: A framework for market analysis
Identify
needs and
gap analysis
Market
assesment
objective
Critical
market
selection
Define scope
and depth of
assesment
Key
analytical
questions
Select
market
assesment
tool or
guidance
Source : CaLP Market Analysis Tool Training
Establish objectives: Market analysis should be used to inform programme decisions related to:
The most appropriate modality for emergency response;
The relevance of supporting the local market after the crisis to promote recovery and/or be in a position to use
the local market to deliver the response;
The relevance of supporting the local market prior to the crisis to strengthen market actors and market access,
so that it can better withstand shocks; and
Indicators to integrate into monitoring and early warning systems (EWS) to pre-empt upcoming crises.
Select critical market systems and places: Focus on markets that are critical for the coverage of basic needs and
the livelihoods of your target group. Select those that are:
Critical for the target group;
Likely to be affected by an anticipated crisis or have already been badly affected by a crisis; and
Aligned with your organisation’s response objective.
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Where possible, take informal and black markets into account to create a complete picture of the market and
consider all key linkages.
Critical market systems capture not only the market chain, but also the market environment and market services.
Market systems often abide by the same rules and regulations, and may have some services in common. Therefore,
understanding market functionality as a whole is the starting point for more specific market analysis.
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Develop key analytical questions: The key questions in the assessment represent the fundamental issues that
need to be addressed before taking a programme decision. The analysis required to respond to the key questions
will vary between situations. However, regardless of the type of programme decisions to be informed and the key
questions, the market assessment will aim to collect information about supply and demand, market integration,
market competition and different groups’ access to the market.