Market analysis in marketing. Market analysis: types, steps and methods

Everyone who takes part in financial interaction certainly works in one or another market of goods. The doctrine of the market is extremely significant in the field of marketing.

The marketing market is the total number of buyers of all products (both available and possible). The size of the market is determined by the number of customers who need the product. They have the resources to exchange, also the desire to provide these resources for the products in which they feel the need.

Research, analysis and forecasting of the market in marketing are very important elements for any company in the process of its functioning.

Market concept

The market is characterized by certain indicators used in market analysis, marketing analysis of the market and the stages of the implementation of measures:

• customer needs stimulating demand;
• capacity;
• geographical position.

Market types

According to the needs that form the demand for certain goods, one can name the main types of market:

• manufacturers market is formed by companies buying products / services for their future use in the industrial process;
• the consumer market consists of people buying products / services for personal use;
• the market of municipal institutions is represented by companies buying products / services to carry out their own work;
• intermediary marketing market - these are citizens and organizations who need goods / services for the next resale in order to generate income;
• The international market contains all the buyers of products that are located abroad.

The following types of marketing markets exist:

• regional - covers the entire territory of a particular state;
• local - covers one or more areas;
• World contains all the states of the world.

The principal parameter in the properties of the sales market is the combination of supply and demand for certain products. In this case, we can distinguish between “customer market” and “seller's market”.

In the seller's market, the leading figure is the trader, respectively. In this case, he does not need to spend financial resources on marketing. In any case, his product will be purchased. Having organized marketing research, the merchant will only spend money.

In the customer’s market, the consumer sets the tone. This condition inspires the merchant to spend additional energy on promoting their own products.

The value of advertising market research

The study of demand is a significant moment in the work of a marketing manager. A detailed study allows you to quickly find unoccupied market niches, choose a more suitable target market and better understand the needs of customers.

Before you begin to study, you need to clarify the objectives of market research. Explore the following parameters:

• company products: study of market development and the share of company products in the sector;
• market structure: study of market conditions and market potential, assessment of trends;
• user: study of demand, basic needs in the market, marketing research of the behavior and expectations of the target audience;
• motivated sector: the study of promising parts of the market for choosing the scope of work;
• free niches: marketing research of parts of the market to identify free market niches and new sources of sales;
• opponents and competitors: study of the work of rivals in order to identify the competitive advantages of products and the search for weaknesses of the company;
• prices: a marketing study of the price positions of competitors, as well as an analysis of the current price structure in the industry.

Consider the main stages of market analysis and marketing analysis of the market.

Stage 1. Determining the objectives of market research

Before starting a market analysis and evaluating indicators, you need to outline the objectives of the study. What specifically should be considered:

• production of the company;
• market structure;
• consumer;
• target sector;
• free niches;
• competitors;
• prices.

Stage 2. Research of a product or service

Using procedures that are associated with the marketing research of goods, the market needs for new types of products / services are determined. It also indicates the properties (multifunctional and technical) that must be changed in products already existing on the market. In the process of marketing analysis of the product market, the characteristics of products are determined that best suit the needs and desires of customers. Such analytical work, on the one hand, shows the company’s management that the client wants to find out exactly what product characteristics are of great importance to him. On the other hand, in the process of marketing research, you can understand how to introduce new products to potential customers. Marketing research of the market of products and services provides data on what new opportunities for the client provide new products or changes in existing ones.

The study of the product consists in comparing the features of the goods that are supplied by the company with the parameters of competing goods. For an organization focused on marketing, the main point in the study is the determination of its comparative competitive advantages.

In the process of conducting a study of the commodity market, you must constantly follow the rule: products should be where the customer most expects them - and for this reason, most likely, he will buy. This process is called product positioning in the market.

Stage 3. Determination of market capacity

Research, analysis and forecasting of the market in marketing begins with an assessment of its capacity.

Possible market capacity is the total number of orders that the company and its rivals will be able to expect from customers in a particular region within a set time (usually a year is taken). Market capacity research is calculated for a specific product for a specific sales region. First, the indicator is calculated in kind (the number of products sold for a certain period: quarter, month, year). A marketing assessment of the potential market capacity in value terms is also crucial for the company. This is especially important when researching the dynamics of market capacity. In this case, the company’s management will need to find out:

• Is there an increase in demand for the company's products? Or the demand is falling - and you need to think about reprofiling the work.
• What are the opportunities in this local market.

In the process of conducting a marketing research of the possible market capacity, it is important to identify the causes of impact that can push both a decrease in capacity and its increase.

Stage 4. Market Segmentation

A market sector is a group of customers characterized by well-defined common features that determine their market behavior. As a result, the essence and purpose of market segmentation is to find the group (or series of groups) of buyers who are more likely to buy certain products.

Marketing market segmentation allows you to:

• find out the specifics of the likely customer of the product;
• show aspects of consumer properties in various market sectors;
• find which of the parameters of the group of customers are sustainable and, as a consequence, more necessary to predict the needs and desires of customers;
• clarify (make changes) the likely market capacity, facilitate sales forecasting;
• find how to change advertising for outlets, what changes need to be made to the company's advertising strategy with the assistance of different groups of customers;
• understand how to change the characteristics of the product (device, price, delivery, appearance, packaging, etc.).

The segmentation function is a function and a system of traits that unite all customers in a particular group. They can be selected by income and social activity, by demographic and geographical features, by nationality, and even by a common historical path.

It is important for a company in the field of sales which of the parameters of a group of buyers are in first place at this moment or will be in the near future.

Stage 5. Research and study of buyers

At this step, it becomes clear who is the likely user of the product, what is the structure of the wishes of the customers.

Work in this direction will help, first of all, to find more vulnerable places. This applies to both the product and its implementation option, the financial strategy of the company as a whole. At this step, the profile of the future buyer is developed.

In the process of this analytical work, not only tendencies and customs, habits and preferences are taken into account. In addition, the prerequisites for the behavior of certain groups of customers are explained. This makes it possible to predict the future structure of their interests. Currently, an arsenal of tools is used for marketing research of customer behavior, their subconscious and conscious reaction to certain products and their advertising, to the current state of the market.

Methods of study include: questionnaires, surveys, testing. They all provide an opportunity to find out the opinion of customers about changes made to a product or service. Using these tools, you can timely monitor the reaction of customers to efforts to release and promote products on the market.

Stage 6. Research of sales methods

Marketing research of the sales market contains a search for a more effective combination of the applied methods and forms of selling products / services, their strengths and weaknesses. It discusses the means necessary for a product to compete in the market. Marketing analytical work involves consideration of the functions and features of the work of various companies involved in wholesale and retail trade. Determines their strengths and weaknesses, explores the nature of established relationships with manufacturers.

As a result, it is specified:

• who can act as an intermediary (autonomous trading company or own sales department of the company);
• how to sell the company's products in a particular market with greater profit.

With all this, you need to calculate all kinds of costs for the sale of products. We need to consider ways of implementation through intermediaries and through our own network.

In addition, it is necessary to clarify the percentage of costs of implementation in the final price of the product, etc.

Stage 7. Studying the productivity of advertising and methods of promoting products

This element of advertising market research is responsible for studying the productivity of different types and methods of advertising and promoting a product on the market. This also includes creating a company style and driving sales.

To develop the market and begin selling its own products, the company needs advertising. It requires searching and informing customers, shaping the company's style, collecting orders.

Marketing research of advertising contains methods for analyzing the marketing environment both in the Russian market and in the world:

• selection of more suitable types and means of advertising;
• trial testing of marketing tools;
• clarification of the preferential sequence of using different marketing tools;
• assessment of the duration of advertising on customers.

The importance of advertising and the productivity of a marketing campaign are evaluated in accordance with the final indicators of financial activity. First, this is seen in increasing sales. However, certain types of advertising are aimed at the long term. They cannot be estimated by quantitative characteristics.

Stage 8. Development of pricing tactics

Pricing is one of the main reasons for successful competition in the market. In the process of working on the right pricing policy, it will be necessary to comprehend not only the strategy, but also the system of discounts for buyers. In addition, you need to find a range of prices in order to increase profits and improve sales.

Stage 9. Study of the level of competition

Opponent research is one of the main components of marketing today. Its indicators provide an opportunity not only to develop the right financial strategy and market policy of the company. It becomes clear that it was improperly implemented in the products, sales network, advertising and other elements of the company.

In the process of research, first you need to identify the main competitors of the company in the market (direct and indirect), as well as identify their strengths and weaknesses. This is especially important when a company appears on the market with a new product, develops an unfamiliar area of ​​financial work, and tries to seep into a new market. To find the comparative advantages of rivals and evaluate their resources, it is not enough just to study the products of rivals. It is necessary to obtain data on the remaining qualities of their work: goals in a particular market, aspects of production and management, pricing and financial situation.

Need to know:

• the size of marketing costs and aspects of the strategy of competitors;
• the ratio of the price of their products and those of rivals;
• What sales channels do competitors rely on for implementation?
• what industries do they wish to leak into in the future;
• what types of benefits do rivals provide to customers;
• whom they use as intermediaries in the sale of products, etc.

Now, along with direct competition, the specialization of companies is deepening. Consumer demand, the desires and needs of people are becoming more personalized. Therefore, you need to learn how to find any methods of competitive work with potential rivals. This is necessary in order to protect yourself from the dangers in a price war.

Stage 10. Sales forecasting

The basis of planning in the company is a market analysis and marketing plan, which refers to the possible size of sales of a certain type of product / service. The main task of marketing market research is to find out what can be sold and in what quantities.

With the help of forecasts, money and production work are planned. Decisions are made about where and how much to invest. Marketing work in this direction allows you to understand how to change the range in order to increase the overall profitability of the company, etc.

But a sales forecast is, above all, a plan. He cannot take into account all the factors.

Methods of market analysis and marketing analysis of the market

There are many market research methods. They are all used in certain situations to solve specific marketing problems. The methods of collecting information in the process of conducting advertising research can be divided into two groups: qualitative and quantitative.

Quantitative market research is most often associated with the organization of different types of questionnaires. They are based on structured, closed-ended questions. The answers are given by a huge number of respondents. Distinctive features of this study are: the study of acquired information is carried out in the order of ordered procedures (quantitative in nature prevails), the format of the information collected and the sources of its receipt are strictly defined.

Qualitative market research consists of collecting, researching, and interpreting information by observing how people behave and what they say. Monitoring and its indicators are of a qualitative nature.

Marketing methods of market analysis are as follows:

1. Focus groups. The target group of buyers takes part. At this event there is a moderator who conducts a conversation on a specific list of issues. This is a high-quality market research tool that is useful for understanding the circumstances of behavior. Focus groups help to build assumptions, to study the hidden motives of customers.
2. Overview. This is a survey of the target market for a complex questionnaire. This is a quantitative way of marketing. It is used when it is necessary to obtain characteristics on certain issues.
3. Observation. Tracking the behavior of a representative of the target audience in an ordinary environment. Refers to high-quality methods of marketing research.
4. Experiments or field studies. Refers to quantitative marketing methods. Provides the ability to test any assumptions.
5. In-depth interviews. Conversation with one representative of the target audience on a specific list of open questions. They provide an opportunity to understand the topic in detail and construct assumptions. They relate to quality marketing methods.

Marketing strategies

Market analysis and marketing strategies are part of the company's overall strategy. With its help, the main directions of the company’s work in the market are formed in relation to competitors and customers.

Market analysis and marketing strategies are influenced by:

• main goals of the company;
• current market position;
• available resources;
• assessment of market prospects and expected actions of rivals.

Since the situation on the market is constantly changing, mobility and resilience are characteristic of an advertising strategy. In order to raise the implementation of a particular company or promote a product, it is necessary to develop your own business areas.

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• Diversified growth. It is used if the company does not have the opportunity to grow in the current market conditions with a certain type of product. The company can focus on the release of a new product, but at the expense of existing resources.

An example of applying a market analysis technique for a company

Market analysis and marketing analysis of the market begin with a study of the company's sales markets using the table below.

Analysis of the dynamics of the sales markets of LLC “...” in 2018.

Market analysis in the table is presented in a generalized form.

Analysis of the foreign market and marketing-assessment of profitability for LLC "...".

An analysis of the data in the table shows that the share of the domestic market of LLC “...” in 2018 is maximum and amounts to over 80%, and the share of the external market is minimal.

It should also be noted that the profitability of the domestic market for all types of products is maximum and varies from 12.1 to 27.3% for different types of products, and averages 23.7%, which is higher than the rate of profitability of the foreign market, which is 19 , 6%.

Consider the structure of the domestic market of the company in 2018.

In 2018, the share of the Moscow Region in the structure of the domestic market is maximum at 75%, and the share of Siberia is minimal at 10%

In 2018, the share of Kazakhstan in the structure of the domestic market is maximum and amounts to 42%, while the share of other countries is minimal and amounts to 26%.

Coffee Market Analysis Example

The table below shows the pace of development of the coffee market in Russia based on marketing research.

Analysis of the coffee market (marketing example) in 2012-2017.

Data taken from Rosstat website.

In 2012-2017 coffee increased its structural share in retail turnover by 0.29 pp. Prerequisites: the spread of coffee fashion in the restaurant business, after that, domestic consumption increases, and the marketing activities of coffee and coffee makers grow. In the category of hot drinks, coffee is confidently changing the demand for itself.

Based on the data from the state statistics service, the monetary size of parts of the coffee market was calculated in the table below.

The volume of segments of the roar of coffee in 2017-2018.

Features of the analysis of the labor market in the field of marketing

The rise in demand for marketing professionals has been observed over the past few years.

Sustained interest in this professional environment was noted. The greatest increase in demand is observed in the field of marketing management.

Analysis of the labor market in the sphere revealed the main trends.

• Demand for marketing professionals is growing. Demand for designers and brand managers has a similar trend.
• Marketing professions require the highest level of professional training, a broad outlook, communication ability, initiative, the ability to creatively solve difficult problems.
• The salary of a marketing specialist in the capital of Russia at the present time (on average) is about 2,000 - 3,000 dollars. In the regions, this indicator is lower.
• Young professionals are increasingly choosing the profession of an advertiser.
• At the highest level, a marketing career can reach the head of a company.

The increasing demand for advertisers is explained by the fact that there are not enough experts in the region who are focused on the outcome. People read advertising books, but they don’t practice tools or are focused only on advanced tasks, for example, ordering pens with corporate symbols and sending out press releases. Therefore, as long as the sphere develops briskly, the demand for experienced professionals who are able to think strategically will grow. Therefore, the analysis of the labor market in the field of marketing for the year 218 indicates positive trends.

Network market and its analysis

Network marketing is a method of promoting products from producer to consumer using recommendations. This method of product distribution is characterized by the absence of intermediaries - wholesalers who overestimate the cost of the final product when reselling products. In network marketing, there is no advertising on the streets and in the press, which is commonplace for a large number of products. This significantly reduces the cost of promoting the products of millions of companies.

For example, 4 main rivals who are engaged in direct sales through agents were selected: Herbalife, Faberlic, Oriflame, Amway.

Company competitiveness data and network marketing market analysis are presented in the table below.

After conducting a study of the competitiveness of companies that sell cosmetics through network marketing, we can draw the following conclusions:

• The product range of companies is quite similar. If one of them launches a unique product line, others try to fill their own assortment with similar products.
• Any company seeks to show its own advertising plan for distributors in a good light so that potential sellers appreciate their merits and make a choice in favor of the company.
• The target audience of each company can be divided into 2 layers: users of the product and its distributors.
• The highest level of competition forces each company to stand out with new methods, both with the help of goods, and based on beliefs in advantages and prizes for distributors.
• In society, there is a rather negative assessment of the network marketing business, therefore any company is forced to deal with stereotypes of every new potential distributor.

All these conclusions impose certain requirements on the creation of various marketing and PR campaigns in this market area.

Conclusion

Market analysis and marketing analysis of the market, research, study and processing of information on the state of the market in a particular area is called marketing research. Similar studies are conducted by specialists of the company, advertising services of large holdings. Both the fate of a small boutique in a shopping and entertainment complex and the productivity of multi-billion investments depend on the correctness, completeness and impartiality of such works. No serious company in the world makes strategic decisions without exploring the market, the possibility of marketing a new product or improving technology.