For each individual entrepreneur, a small company and a giant corporation, it is extremely important to conduct a procedure called the “Product Market Analysis”. Such a study allows companies that are just starting a business to correctly assess market conditions, predict trends in its development, calculate possible sales volumes and analyze the activities of competitors. All of the above is important to ensure the rapid growth of the company, and also allows you to lay the foundations that in the future will allow you to organize effective management of distribution channels. As for companies that have long and successfully existed in the market, their analysis of the sales market helps them plan their activities and successfully compete with other market players. In order to confirm the importance of conducting market analysis, we only note that federal retail chains spend huge amounts of money on such research, and this is carried out constantly.
Thus, the analysis of the product sales market is a necessary component of success, and how to conduct it correctly will be described below. An analysis of the product sales market takes place in several stages:
- The research concept is being developed: goals are defined, objectives are set, a system of performance indicators is developed.
- Initially, the current position of the enterprise for which the analysis is carried out is determined in the market. The options for choosing the time period in which the promotion will be weighted are weighed, the advantages and disadvantages of the location of the enterprise are considered, the specific conditions under which the purchase or rental of premises will be carried out are analyzed. In the analysis, it is necessary to take into account the size of the room, as well as the equipment and equipment that is supposed to be used.
- The third stage of the analysis is to consider the range of goods that will be in the warehouses of the enterprise at the time of its opening. It is important to understand the possibilities for further expansion of stocks, as well as the range.
- An assessment is made of the competitive relations that will inevitably arise in the course of activities. It is important to find out how strong the competitors are in the field of activity that the company has chosen, what is their strategy for promoting the market, and is it possible to cooperate with them.
- Information is being collected on potential consumers of the products offered. As ways to obtain primary data about consumers, you can choose observation, personal communication, experiment, survey. After the primary information is collected, you can identify a group of customers who will be destined for certain goods or services. Customers need to separate groups, and then determine the needs of each group, and also develop ways to meet these needs.
- The factors that influence the increase or decrease in purchasing power, which are demonstrated by the main groups of customers, are determined. These factors help describe customer behavior and plan product sales.
- The external environment, or rather its factors, represented by economic, political, cultural, etc., is taken into account. These factors can change the state of the market in the next two to three years, and this is very important for starting any business.
- The analysis of possible ways to promote goods or services to the market, as well as distribution channels, ways to stimulate it. A strategy is being developed according to which an advertising campaign will be conducted.
All the results obtained during the analysis should be brought together - as a result, an analytical report will be obtained . It is also necessary to add the results of the analysis to the business plan - this makes it possible to assess the risks, as well as develop ways to reduce them.