The results of marketing research are the basis both for bringing sales to new markets, and for understanding the prospects of the company in the developed markets, as well as the planned levels of revenue and profit from product sales.
Marketing is the beginning of the beginnings, and, at the same time, a new round in a more global business. In the conditions of development of market relations, the main tasks that companies set themselves, carrying out the production and sale of products / services, are:
• clarification of the desires of consumers;
• selection of goods and services that the company can produce;
• determination of the amount of products that can be sold;
• organization of product promotion on the market and advertising;
• search for markets and distribution methods;
• determination of critical sales volume and threshold selling price;
• analysis of the quality and competitiveness of products;
• choice of pricing policy.
Revenue, or income from sales, is the result of the main activities of the enterprise and is the main indicator of the volume of economic activity. Sales volume is a basic indicator of budgeting, that is, estimated planning at the enterprise. The estimate of the volume of sales of products (goods, works and services) is determined by the methods of marketing analysis (its objects are the product itself, the market, that is, the consumers of the product, and competition), which determines how many goods the manufacturer can sell.
In the conditions of competition and constantly changing market conditions, a lot of attention is paid to marketing research. The results of these studies in the future are the basis for the formation of estimates of sales, and based on this and the planned levels of revenue and profits from product sales. Marketing research helps the company solve the following problems:
• determine the possibility of mass production of goods or services;
• establish a hierarchy of characteristics of goods or services that can ensure their success in the market;
• analyze the typologies and motivations of the existing and potential clientele;
• determine prices and optimal conditions for the sale of goods and services.
The purpose of marketing research is to resolve the following problems of the enterprise:
• study and determination of the potential of the market or product about the possible volume of its sales, sales conditions, price levels, potential clientele capabilities;
• study of competitors’ behavior, directions of their actions, potential opportunities, pricing strategies;
• sales research with the definition of the territory that is the best in terms of sales, sales in the market, which is the most effective.
Companies are developing a common marketing research plan, which is drawn up in the context of marketing individual goods or services, by type of customer, by region.
Thus, we can say that marketing research is a comprehensive system for studying the organization of production and marketing of goods and services, which is focused on meeting the needs of specific consumers and making a profit based on market research and forecasting. The most difficult tasks of marketing research are the analysis and decision-making on pricing and sales promotion.
The result of marketing research is to develop a marketing strategy for the company, the purpose of which is to select the target market and marketing complex, the compliance of which will help ensure the maximum effect of sales of the product and services.
When choosing a target market, it is necessary to justify the answer to the question: what product does the consumer need? For this, it is necessary to establish rational segments of a concentrated, differentiated or undifferentiated market that the organization will serve.
The choice of a marketing complex is associated with establishing the optimal combination of its elements: the name of the product, its price, distribution and sales promotion. On the basis of the adopted marketing strategy, the main management decisions are developed, orienting the company’s activities to solving problems that arise or may arise from a potential consumer of goods, works and services. This principle can be implemented if the basis for decision-making on organizational, technological, social and production issues is the result of an analysis of the needs and requirements of potential buyers.
Numerous objects of marketing research can be reduced to three main groups:
• consumers of goods, or the market;
• product and its properties;
Business is something that has consumers. Market research i.e. consumers of goods means:
• study of consumer behavior motives;
• analysis of market conditions;
• analysis of the “niche” of the market, ie areas of activity in which the company has the greatest opportunity to realize its comparative advantages in order to increase sales (turnover);
• analysis of the most effective ways to promote goods on the market, forms and distribution channels;
• analysis of trends in price changes;
• analysis of the effectiveness of advertising.
Product – the next object of marketing research. The study of the goods means:
• study of the properties of a product or service, consumer properties of a product, its difference from competitors’ products;
• analysis of the volume of goods turnover of the enterprise by industry (food) and geographical (territorial) segments;
• determination of the product life cycle, ie the length of the period when the product entered the market, the period of saturation of the market with the product, the period of falling demand, when it becomes necessary to modernize the product or replace it with a new product;
• development of effective after-sales service for goods from consumers (after-sales service);
• determination of production and financial potential to expand the production of goods.
When researching competitors, it is necessary:
analyze the situation in industry and geographic segments of sales;
study real and potential competitors, evaluate their sales, revenues, financial situation;
analyze competitors’ price policies, the possibility of increasing market share;
give the basic characteristics of the properties of competitors ‘products, the level of quality and design, in connection with which competitors’ products are purchased;
Compare the strengths and weaknesses of your company and competitors.
Having unique experience in conducting international business, Alfa Resonance Capital Ltd offers participants of the business community a full range of necessary services for conducting marketing research, market analysis and studying the development prospects of the company in a specific environment and conjuncture.