Conjuncture - what is it? Change in market conditions

When one person comes up with a good idea, and he begins to successfully deal with it, then soon he will have followers who offer analogues. And together all these entrepreneurs influence the situation that develops in the market.

What is called conjuncture?

There are several definitions of this term. In the framework of the article, five of them will be presented, which consider the phenomenon of “conjuncture” from different points of view. What is this from economic textbooks:

1. This is the name of the relationship that formed between the supply and demand of both individual goods and their groups by their mass (in quantitative or monetary terms) of the total number of products.
2. Specific economic situations that develop on the market in a certain period of time. It reflects the current ratio of supply and demand.
3. The set of conditions that determine the market situation.
4. The state of the economy at a given time, which is determined using various targets.
5. The result of the interaction of various factors (natural, social, managerial, technical), the influence of which determines the position of the company in the market.

The analysis of the situation of each individual subject is carried out taking into account a number of features. So, it is mandatory for markets to take into account mutual influence and interaction with other structures of a similar type (or located in other countries). It must be understood that each subject has a close relationship with the general economic situation, which exists in a single country or even a whole region.

What is necessary when studying this phenomenon?

We know what the situation is. What is informing for a full understanding of the process is not enough - I think you also noticed. Therefore, we will pay attention to a whole series of complementary information. So, in the study of market conditions, it is necessary to analyze:

1. The indicator of demand for goods.
2. Market share of various enterprises.
3. Price
4. Indicators of material production, which make it clear about the number of goods offered on the market, its capacity and level of saturation.

Characteristic

The conjuncture of the enterprise is determined by a set of conditions, thanks to which the market situation at a given time is formed. Therefore, based on the state of things, it can be of two types:

1. High conjuncture (favorable). Its peculiarity is a balanced market, as well as a growing or stable (at least) sales volume. Also, prices are in equilibrium.
2. Low conjuncture (unfavorable). Its feature is a market with characteristic signs of imbalance, in which there is no or reduced demand. This is accompanied by significant price fluctuations, a sales crisis, as well as a shortage of goods.

A clear boundary between the induced definitions is not provided. Therefore, as an addition, they can talk about vibrant, developing, stable, stagnant, regressing markets.

Indicators

These are indicators by which market experts are evaluated by specialists and experts. What does it mean in practice? Prices, indicators of business activity, inventories (which can act as relative or absolute indicators) are indicators that tell specialists and experts what the market situation is. Moreover, the specifics are such that judging everything by only one of them is not a promising business. They must be taken into account in the complex. So, if there is an increase in the number of transactions, but sales volumes are at the previous level, this means that the market does not come to life, but a large number of small firms enter it. A similar role is played by the occurrence of a shortage or surplus of inventories. So, their formation suggests that a marketing crisis is coming and inflation.

What are the main indicators of market conditions?

Thanks to them, a surface analysis can be carried out:

1. The ratio of supply and demand for a product (service).
2. Market development trend.
3. The level of volatility (or stability) of the market.
4. The degree of business activity.
5. The scale of market operations.
6. The scope and strength of competition.
7. The impact on the market situation of a certain phase of the seasonal or economic cycle.
8. The level of commercial risk.

If it is necessary to investigate the situation, a whole series of other parameters are used more deeply, the choice of which depends on the goal. We will come back to them.

The subject, subject and tasks in the study of market conditions

These are important components necessary for high-quality result processing:

1. Subject. Under it is understood the study of mass processes and phenomena, due to which a specific market situation is determined, which can be amenable to qualitative and quantitative assessment.
2. Subject. Various commercial structures act in their quality (in this case they say that there is a conjuncture of marketing), public organizations, state bodies and scientific institutions.
3. Tasks:
   1. Collect and process market information.
   2. Characterize the scale of the market.
   3. Identify development trends.
   4. Assess and analyze the basic proportions of the market.
   5. To analyze the variability, seasonality and cyclical development.
   6. Assess regional differences.
   7. Monitor business activity.
   8. Assess business risks.
   9. To monitor the intensity of competition and monopolization of the market.

Minor indicators

Their use depends on what goals the research faces. In general, such indicators exist and are used:

Offers of services and goods:

1. Volume, structure and dynamics of production.
2. The potential and elasticity of the proposal.

Customer demand for services and goods:

1. Volume, dynamics and degree of satisfaction of requests.
2. Consumer potential and market capacity.
3. Elasticity of demand.

Market proportions:

1. The ratio of supply and demand.
2. The turnover structure.
3. The division of the market between the manufacturer and wholesalers and retailers.
4. Distribution by ownership of product distributors.
5. The relationship between the market for capital goods and consumer goods.
6. Regional market structure.
7. Distribution of customers based on their consumer attributes (age, income, and so on).

Prospects for the development of the investigated market:

1. Growth and growth rate of sales, inventory, profits, investments, prices.
2. Trend Parameters.

Fluctuations, stability and cyclical market:

1. The coefficient of variation in sales, prices, inventory in a certain time period and in some territory.
2. Parameters of the models of cyclicality and seasonality of the functioning of subjects and the environment of their interaction.

Regional market development and its condition:

1. Variations in the ratio of supply and demand depending on territorial features.
2. The regional level of requests per person.

Business activity:

1. The composition, content and dynamics of the portfolio of orders.
2. The number, size and frequency (and its changes) of transactions.
3. Workload of production and trading capacities.

Commercial risk:

1. Rationality of investments.
2. The risk of making marketing decisions and market fluctuations.

Levels of competition and monopolization:

1. The number of firms in the market for a particular product. Their ownership, organization and specialization are also taken into account.
2. Distribution of firms by their volume of production, sales and marketing.
3. The level of privatization (the number of such enterprises, their share in the market volume, organizational form).
4. Market section (grouping of companies by their size or share in total sales).

These are the factors of the situation. But economic sciences are constantly evolving, so it is not a fact that in a few years this list will be incomplete.

World market conditions

This is the most difficult and at the same time desired level. There is no single center of market conditions. So, if we talk about the stock and currency markets as concrete examples, then here as the places where the most activity is New York, Tokyo and London. We can also distinguish large regional centers - such as Moscow and Beijing. When conditions change under the influence of certain trends or decisions made by governments, this affects the world to one degree or another. That's just the difference in their influence is different.

Conclusion

We considered the situation. What is she, you have an idea, as well as on the basis of what indicators the concept of her is formed. Of course, this is not all information on this topic. This article is purely informational, and formulas were not placed in it, according to which various parameters are considered. And half of all the subheadings, if they are well disclosed, could fit many times more volumes than this text has.