Any firm that decides to enter the market faces fierce competition. In order not to go broke, you must always be "faster, higher, stronger." But how to clearly formulate what is needed for this? This is what market research is for. An example can be presented as an analysis of all aspects that affect a product or service under existing conditions. It is the key to the continued success of the company and the achievement of all goals.
Complex of management activitiesand
What does the whole process of analyzing external and internal factors of a company consist of? Market research is the basis of the marketing activities of any enterprise. It involves the analysis of all the conditions that affect the successful implementation of a product or service. The complex of marketing research depends on the particular characteristics of the product, the direction of the company, the scale of production, etc. Moreover, the most important determinant of market research is the end goal. Is the firm seeking tointernational level? Does it need to increase awareness and loy alty to the product? Is there a transition to another price segment? Only on the basis of a correctly and competently formulated goal can one understand what material should be collected in the analysis process.
Market Research Categories
Traditionally, the following sections of market research are distinguished:
Studying the offer
In the process of such an analysis, it is important to quantify goods on the market, study the volume of import / export, the presence and / or change in its stocks. All this allows you to make forecasts regarding the growth or decline in the supply level.
Also, its structure is considered here. This refers to the emergence of new products and brands, the speed of updating the range. The market supply is in a state of constant change. If we consider the situation regarding one specific product (as an example of a marketing research of a product, we can take the analysis of baby shampoo), then here we need to study the development trends of competitors' products, the state of the world market and other factors that affect the structure of the offer for shampoo. In modern conditions, updating and expanding the range and range of goods on sale is very fast. This is influenced by both completely new, previously unreleased brands, and the accelerated improvement of existing products.
Studying demand
This, perhaps, can be called a paramount factor,which characterizes the level of demand for a particular product or service. This indicator reflects consumer ability, requirements and expectations, factors of purchasing behavior, prospects for changing interest in the product due to the growth rate of production or the stage of its life cycle. An example of marketing research in this case can be presented in the form of a graph below.
To identify the need for a product or service, it is important to know the indicators of market capacity. That is, the saturation in this product is estimated based on indicators of foreign trade and industrial statistics.
Studying the conditions of market competition
This analysis is important because on the basis of its results management decisions are made, the purpose of which is to maximize the efficiency of the company. An example of marketing research in this category can be represented as a comparative characteristic of a given firm and their main competitor. But here we consider not only the activities of firms-sellers and firms-buyers, but also general commercial practices that have developed in a particular market, conditions for the movement of goods, distribution channels, legal issues, trade and political characteristics, etc.
Methods of Market Penetration
Carrying out market research allows you to determine the best option for the distribution and sale of goods and services. In today's environment, there are three key ways to enter the market.
Create your own distribution network
When choosing this way to enter the market, you must first of all thoroughly study all the strengths and weaknesses of competitors, organize and train your representatives who could defend the interests of your company and stimulate sales growth.
Use independent sales agents
This method refers to the search for existing distribution networks. It can be both private entrepreneurs and larger stores and even supermarkets.
Market research example
In the process of studying, the collection, analysis and systematization of all the data obtained regarding the external and internal characteristics of the enterprise, its competitors, products and the market as a whole.
The data collected during the study is presented in the form of a report consisting of the following items:
- Analysis of the company's internal information (goal/goals, a prolonged vision of the company's development paths, its production capabilities, the company's strengths and weaknesses).
- Volume and dynamics of market development (dynamics of development and market changes, current market volume).
- Market segmentation (formation and justification of segmentation criteria, description of the main market segments, more detailed segmentation of the most promising group of buyers).
- Market analysis (determination of quality requirements, main market trends, key factors influencing the decision to purchase a product or service,consumer attitudes towards quality, market barriers).
- Analysis of competitors (segmentation of competing enterprises, study of their main development strategies, analysis of pricing policy in the market, forecasting the development of a competitive situation).
- Sales forecast and business development prospects of the company (strategic objectives of the project and SWOT analysis).
