Any firm that decides to enter the market falls into the conditions of fierce competition. In order not to go broke, you must always be "faster, higher, stronger." But how to clearly articulate what is needed for this? For this, the market research is conducted. An example can be presented in the form of an analysis of all aspects that affect the product or service under the existing conditions. It is the key to the further success of the firm and the achievement of all the goals set.
Complex of management activities
What is the whole process of analyzing the external and internal factors of the company? Market research is the basis for marketing activities of any enterprise. It involves the analysis of all conditions that affect the successful sale of goods or services. The complex of marketing research depends on the individual characteristics of the product, the direction of the company's activities, the scale of production, etc. Moreover, the most important determining factor in studying the market is the ultimate goal. Does the company seek to enter the international level? Is it necessary to increase the recognition and loyalty to the product? Is the transition to another price segment? Only on the basis of correctly and correctly formulated goals can we understand what material should be collected during the analysis.
Categories of marketing research
Traditionally, the following sections of market research are distinguished:
- Study of the proposal.
In the process of such analysis, it is important to quantify the goods on the market, study the volume of imports / exports, the presence and / or change of its stock. All this makes it possible to make forecasts regarding the growth or decline in the supply level.
Its structure is also considered here. This means the emergence of new products and brands, the speed of updating the range. The market offer is in a state of constant change. If we consider the situation with respect to one particular product (as an example of marketing research of the product, you can take the analysis of children's shampoo), then here we need to study the development trends of competitors' products, the state of the world market and other factors affecting the structure of the offer for shampoo. In modern conditions, the renewal and expansion of the assortment and the range of goods available for sale is very fast. This is influenced by both completely new, previously unreleased brands, and accelerated improvement of products already produced.
- Study of demand.
This, perhaps, can be called the primary factor that characterizes the level of demand for a certain product or service. This indicator reflects the consumer's ability, requirements and expectations, factors of consumer behavior, the prospects for changing interest in the product due to the growth rates of production or the stage of its life cycle. An example of a marketing study in this case can be presented in the form of the graph below.
To identify the need for a product or service, it is important to know the market capacity indicators. That is, the saturation in this product is estimated based on the indicators of foreign trade and industrial statistics.
- Study of 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 effectiveness of the company's activities. An example of a marketing research of this category can be presented as a comparative characteristic of a given firm and its main competitor. But here we consider not only the activity of firms-sellers and buyers, but also general commercial practices that have developed in the conditions of a certain market, conditions of commodity circulation, sales channels , legal issues, trade and political characteristics, etc.
Ways to penetrate the markets
Carrying out of marketing researches of the market allows to define an optimum variant for distribution and realization of the goods and services. In modern conditions, there are three key ways to penetrate the market.
- Create your own sales network.
When choosing this method of penetrating the market, it is first of all necessary to thoroughly study all the strengths and weaknesses of competitors, organize and train their representatives who could defend the interests of your firm and stimulate sales growth.
- Use of independent sales agents.
This method is understood as the search for existing sales networks. This can be both private entrepreneurs, and larger stores and even supermarkets.
Example of marketing research
In the process of the study, all data on the external and internal characteristics of the enterprise, its competitors, goods and the market as a whole are collected, analyzed and systematized.
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 / objectives, prolonged vision of the company's development path, its production capabilities, weaknesses and strengths of the company).
- Volume and dynamics of market development (dynamics of development and market changes, current market volume).
- Segmentation of the market (formation and justification of segmentation criteria, description of the main segments of the market, more detailed segmentation of the most promising group of buyers).
- Market analysis (definition of quality requirements, main market trends, key factors influencing the decision to purchase goods or services, consumers' attitude to quality, market barriers).
- The analysis of competitors (segmentation of enterprises-competitors, studying of their main development strategies, analysis of price policy in the market, forecasting the development of a competitive situation).
- Sales forecast and business development prospects of the company (strategic tasks of the project and SWOT-analysis).