Anyone who runs his own business, in any case, faced with such a concept as the market. Economic interaction takes place in the market. This is where the concept of marketing came from. Often the company leads the wrong marketing move, so it cannot raise sales to a new level. How to fix this situation? How to write a marketing research to make it work?
Marketing market: what is it and how does it work?
The marketing market is understood as all buyers who in one way or another can be involved in purchases. Not only real buyers, but also potential ones count. They are united by common requests and needs. Market size is the number of buyers who need a particular product.
The market is defined by clear indicators:
- Customer needs that provoke demand;
The market is formed depending on the needs of customers.
The market of state institutions, which includes state-owned companies that use goods and services for their work.
Producer market - they use the products in order to continue their operation.
International market. This includes buyers located in other countries (this group includes producers and consumers).
Consumer market. These are individual customers who buy services and goods for their own use.
Intermediary market. These are individuals and legal entities who resell the purchased goods for their own benefit.
We see that each type of market has its own characteristics. On the consumer side, the buyer sets the rules. Therefore, in this situation, the seller spends additional funds to win new customers. Here, marketing research is indispensable, which will help to get new customers.
What is marketing research?
Marketing research allows the seller to understand the needs of his buyer. Research is carried out to study the market situation, consumer behavior and preferences. Marketing research is a systematic search, collection and analysis of data to make the right decision to further promote the company. To conduct production and sell products, you need a competent plan.
Marketing research is intended to build a development and sales strategy based on market conditions and company prospects. Market research is needed not to find the truth, but to narrow down the paths of action. This is especially true for the long term. The company reduces the risk of wrong actions when the initiative is in the hands of the consumer.
Here is a marketing research scheme:
Market Research Objectives - Market Analysis Plan - Timeline and Budget - Research Methods - Conducting Research - Analysis and Conclusions - Final Review - Presentation of Results.
Why should a company analyze the market?
This is the job of a marketing manager. A detailed study of the market will help you find free niches, determine the target audience, and identify consumer needs.
Before proceeding with the study, it is necessary to identify the goals of the analysis. That is, define this:
- What is the position of the company's products in the market?
- Assess market trends and marketing capacity;
- To study the expectation of consumers from goods and services, their main wishes and the level of demand;
- Identify promising areas of the market and their employment;
- Identify free niches to occupy new sources of sales;
- Competitors: what place they occupy in this niche, their advantages and disadvantages;
- Pricing policy of competitors.
In order not to do extra work, it is necessary to adhere to precisely these parameters for determining the objectives of the market research and writing a market research report. Clarity of goals will help direct forces in the right direction and not waste time and money in vain. So you reduce the cost of searching and processing the necessary information.
How to prepare a research plan?
Step №1. In the first step, set the objectives of the analysis. The more specifics, the more unnecessary information can be weeded out.
Step №2. Target audience research. You also need to understand what characteristics of an existing product on the market need to be improved and transformed. On the one hand, the business owner understands what requirements the client is now placing on the product and what properties are important.
Analysis is necessary to determine the weaker characteristics of the product, in contrast to those of competitors, on which to focus. A marketing research company clearly defines for itself the reasons why buyers go to competitors for goods. How and where to find potential buyers? It is necessary to identify the area of sales of products, where there will be the least dependence on rivals.
Step №3. Determining the size of the market. This concept includes the total number of orders that this organization and other companies can receive. A certain period of time is taken. Only one product name for the region under study is taken into account. The company must answer for itself the following questions:
- The demand for their product rises or falls;
- Are there any development prospects in this segment.
It is important to understand what factors affect the increase and decrease in demand for a product. This primarily depends on fluctuations in consumer income.
Step №4. Market segmentation. It is necessary to identify a site in the market in which consumers have common features of behavior regarding purchases and put forward common requirements for the product. It is important for the company to understand which properties of the product the buyer puts in the first place, and which will soon be determined as more important.
Step №5. Understanding how to sell. You need to find the most effective marketing methods. Which organization could become an intermediary, and where to identify outlets for retail sale.
Step №6. Conducting an advertising campaign. Here you should collect the most effective ways of advertising. Run trial ads. Find out in what sequence to use the different ways to advertise the product.
Step №7. Definition of pricing. Develop a scheme according to which the price for the consumer will be formed, what promotions and discounts you are ready to provide. Also set the range in which the minimum and maximum prices can be.
During the analysis, use only those indicators that you can process. After all, the result is important to you, and not a theoretical study, which is possible even with a minimal budget. After each step, draw conclusions, only then move on to the next. The analysis should be as efficient and productive as possible. Contact sales managers - they have a lot of information about competitors and market conditions.