Any company deciding to enter the market is subject to 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? For this, market research is carried out. An example can be presented in the form of 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.
The complex of managerial activities and
What does the whole process of analyzing the external and internal factors of the company consist of? Market research is the basis of the marketing activities of any enterprise. It involves an analysis of all conditions that affect the successful sale 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 determining factor in market research is the ultimate goal. Does the company strive to enter the international level? Does she need an increase in recognition and loyalty to the product? Is there a transition to a different price segment? Only on the basis of a correctly and correctly formulated goal can we understand what material should be collected in the analysis process.
Marketing Research Categories
Traditionally, the following sections of market research are distinguished:
In the process of such an analysis, it is important to quantify goods on the market, study the volume of imports / exports, the presence and / or change of its stocks. All this allows us to make forecasts regarding the growth or decline in the supply level.
Its structure is also 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 on a product, you can take an 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 affecting the structure of the shampoo supply. 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 accelerated improvement of existing products.
Perhaps this can be called the primary factor that characterizes the level of need for a particular product or service. This indicator reflects consumer ability, requirements and expectations, factors of purchasing behavior, prospects for changes in interest in a product due to the growth rate of production or the stage of its life cycle. An example of a 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.
- The study of market competition.
This analysis is important in that based on its results, management decisions are made, the purpose of which is to maximize the effectiveness of the company. An example of a marketing research of this category can be represented as a comparative characteristic of a given company and their main competitor. But here we consider not only the activities of sellers and buyers, but also general commercial practices that have developed in a particular market, the conditions of distribution, distribution channels , legal issues, trade and political characteristics, etc.
Market entry methods
Conducting market research allows you to determine the best option for the distribution and sale of goods and services. In modern conditions, there are three key ways to penetrate the market.
- Creating your own distribution network.
When choosing this method of penetrating the market, you must first thoroughly study all the strengths and weaknesses of competitors, organize and train your representatives who can defend the interests of your company and stimulate sales growth.
- Use of 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.
Marketing Research Example
In the process of studying, there is a collection, analysis and systematization of all received data regarding the external and internal characteristics of the enterprise, its competitors, products and the market as a whole.
The data collected during the study are presented in the form of a report consisting of the following items:
- Analysis of the internal information of the company (goal / goals, a prolonged vision of the development paths of the company, its production capabilities, strengths and weaknesses of the company).
- Volume and dynamics of market development (dynamics of development and market changes, current market volume).
- Market segmentation (the formation and justification of segmentation criteria, a description of the main market segments, more detailed segmentation of the most promising group of customers).
- Market analysis (determination of quality requirements, main market trends, key factors affecting decision-making on the purchase of a product or service, consumer attitude to quality, market barriers).
- Analysis of competitors (segmentation of competing enterprises, the study of their main development strategies, analysis of pricing policies 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).