Sales market analysis
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Sales Market Analysis
Research and analysis of the sales market is one of the most important stages in the preparation of business plans, which must answer the questions: who, why and in what quantities buys or will buy the company's products.
Domestic and foreign experience shows that poor knowledge of the market is one of the main reasons for the failure of many commercial projects. Among the main tasks of the enterprise, solved in this section of the business plan, is the determination of the demand and capacity of each specific market for each type of goods (services). These indicators will characterize the possible sales of goods (services). The success of an enterprise in the market and the time during which it can maintain its position on it will depend on how carefully the level and structure of demand are studied and determined, as well as the tendencies of its change.
The following areas of comprehensive market research should be reflected in the business plan:
· definition of market structure;
When researching a market, it is necessary, first of all, to determine the type of market for each product or service. In the process of selecting a suitable market for business and determining the characteristics of working in it, business planning should rely on the classification of markets. When determining the type of market, one should also give its characteristics, that is, indicate the stage of market development (growth or decline trend), historical and economic reasons for the existence of the market, territorial distribution of the market (region and population concentration), market restrictions (economic, legal, etc. .), etc.
When analyzing a sales market, its structure is studied, i.e. the operation of market segmentation is carried out - the division of the total population of consumers into certain groups (segments), which are characterized by common needs, requirements for the product and the motives for its acquisition. The success of the enterprise in the competition for the market largely depends on how reasonably the selected market segment is. The practical use of segmentation techniques involves finding the optimal balance between the processes of standardization and product differentiation. The business plan specifies the main consumers and the principles of their segmentation, notes what attracts a typical buyer of this segment, outlines the circle of the most attractive segments.
Evaluation of market conditions. The purpose of any market research is to assess the existing market conditions and to develop a forecast of market development. At this stage, the number of buyers in each of the selected segments is assessed and demand is measured, the market capacity and the degree of demand satisfaction are determined. Based on these data, the most profitable segments for the enterprise are selected - target markets.
Selection of target segments. Based on the data of the assessment of the market situation, the most profitable segments for the enterprise are selected. A promising segment can be considered, in which there are approximately 20% of buyers of this market, purchasing 80% of the goods offered by the enterprise. It also examines the position of the enterprise in the market. For the first year of sales, this paragraph indicates:
· main consumers of the product, data on product orders, contracts, written commitments available from the enterprise are provided;
VVS provides exclusively analytical services and does not advise on theoretical issues of marketing fundamentals (calculation of capacity, pricing methods, etc.)
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Market analysis of goods is a key process of effective marketing policy. The constant movement of supply and demand forces sellers and manufacturers to keep their finger on the market pulse. What was relevant yesterday may not have a positive effect today, and tomorrow everyone will forget that there was such a product on the market and brought good profit. In addition, market analysis is carried out individually for each region. General trends present in one market may not work in other markets, even within the same country. If the firm operates on the international market, the analysis becomes more complicated.
Basic principles of product market analysis
Sales analysis is a thorough study of the characteristics and trends of the current market in order to develop an effective marketing strategy in a given time horizon.
At the first stage, we define the target audience for our product group. In any case, there are several sales channels, each of which requires its own tools and promotion techniques. It is necessary to accurately name each group of consumers, assess the potential of their purchasing power and express in numbers the volume of goods that can be pumped with a competent marketing policy. It is worth starting with the selection of the largest groups. We will determine how buyers relate specifically to our product and how informed they are.
The market is divided into the following segments:
Uninformed consumers ("sleeping group") who know nothing about our product;
Informed customers, but not motivated to buy goods ("waiting category");
Visitors to the market of our competitors' products ("potential group");
The real buyers of our product ("work category").