How do you do market assessment?
The first step in assessing markets is to map the market environment – identifying which commodities and markets will be assessed. This is not just the actual location where items are bought and sold but the systems that enable this to happen. You then need to collect the information and analyse it.
[link to roadmap for assessing markets]
Depending on the amount of time and capacity, there are a few tools that can assist with this process: The Rapid Assessment for Markets and the Market Analysis Guidelines.
More information can be found in the assessments section of the Cash in Emergencies Toolkit.
Follow up: Is this only necessary for cash programmes?
No. Market assessments are an integral part of the response analysis and should be carried out during the assessment process.
If markets are disregarded, any intervention (both in-kind and cash based) can have potentially harmful results, including:
• Artificial and significant deflation caused by a fall in the demand for the goods of local market actors (this could have significant harmful long-term impacts);
• Either inflation deflation in the price and change in the availability of certain essential goods;
• Other distortions in markets, which undermine the future viability of local livelihoods, jobs
(Cash Learning Partnership (2013) Minimum Requirements for Market Analysis in Emergencies, p.11.#)
Follow up: What are market based interventions?
Market based interventions are activities that support existing market systems to improve the situation of crisis affected populations targeting market actors, service or infrastructure providers that sell or buy products and services that are ultimately available to communities who are consumers of that market.