Marketing market research– one of the types of marketing research, studies all aspects of the company’s business environment.
Purpose of marketing market research– create an information and analytical base for making marketing decisions and thereby reduce the level of uncertainty associated with them.
The result of market research in marketing is an understanding of the activities of competitors, market structure, government decisions in the field of regulation and stimulation of the market, economic trends in the market, research into technical advances and many other factors that make up the business environment, which allows you to be closer to the consumer, understand and feel his needs and mood.
Objectives of marketing market research:
- determine market capacity. Studying the market capacity will help you correctly assess your chances in this market and avoid unjustified risks and losses.
- determine your market share. The share is already specific, and it is quite possible to build on it when forming future plans, and then increase it in the future. Market share is an indicator of your company's success.
- analyze consumer behavior (demand analysis). This analysis will assess the degree of consumer loyalty to the product and the company and answer the question: “Who buys and why?” And, therefore, it will help set competitive prices for products, make changes to the product itself, optimize promotion channels and advertising strategy, that is, adjust all components of the marketing mix.
- conduct a competitor analysis (supply analysis) Knowledge of competitors' products and marketing policies is necessary for better market orientation and adjustment of your individual pricing and promotion policies, which will ensure your victory in the competition.
- analyze sales channels, which will allow you to determine the most effective of them and form a ready-made chain of optimal movement of the product to the end consumer.
Knowing the market capacity and trends in its changes, the company has the opportunity to assess the prospects of a particular market for itself. There is no point in working in a market whose capacity is insignificant compared to the capabilities of the enterprise: the costs of introducing it to the market and working on it may not pay off.
Marketing market research is carried out in two aspects:
- assessment of a given point in time in order to adjust certain market parameters;
- obtaining values for making a forecast.
Quantitative Market Research usually identified with conducting various surveys based on the use of structured, closed-ended questions answered by a large number of respondents. The characteristic features of such studies are: a clearly defined format for the collected data and sources for obtaining them; the processing of the collected data is carried out using streamlined procedures, mainly quantitative in nature.
Qualitative market research involve collecting, analyzing, and interpreting data by observing what people do and say. Observations and conclusions are qualitative in nature and are carried out in a non-standardized form.
Data collection for market research. The main methods for collecting primary marketing data are field research:
- survey;
- observation;
- experiment;
- simulation
From a process perspective, there are at least three alternative approaches to data collection:
- by the marketing staff,
- by a specially created group or with the involvement of companies,
- specializing in data collection.
Analysis of market research data begins with the transformation of source data (input into a computer, checking for errors, coding, representation in matrix form). This allows you to translate masses of raw data into meaningful information. Next, statistical analysis is carried out (averages, frequencies, regression and correlation coefficients are calculated, trends are analyzed, etc.).
The field of market research as a statistical science was initiated by Arthur Nielsen with the creation of the ACNielsen Company in 1923.
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2.5.1. Section structure and content
Market research and analysis- one of the most important stages in the preparation of business plans, which should provide answers to the questions: who, why and in what quantities buys or will buy the company’s Products.
Domestic and foreign experience indicates that poor knowledge of the market is one of the main reasons for the failure of many commercial projects. The main tasks of the enterprise, solved in this section of the business plan, include determining the demand and capacity of each specific market for each type of goods (services). These indicators will characterize the possible sales volumes of goods (services). Both the success of the enterprise in the market and the time during which it can maintain its position in it will depend on how thoroughly the level and structure of demand and trends in its change are studied and determined.
Since the collection, processing and analysis of market information is a rather complex process, it is advisable to involve specialized organizations in conducting the research, which may require significant costs, which in most cases are justified.
The business plan should reflect the following areas of comprehensive market research:
- determination of market type - 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 activity and determining the characteristics of work on it, business planning should be based on the classification of markets. When determining the type of market, you should also give its characteristics, i.e. indicate the stage of market development (trend of growth or decline), historical and economic reasons for the existence of the market, territorial location of the market (region and population concentration), market restrictions (economic, legal, etc.), etc.
- determination of market structure - when analyzing the sales market, its structure is studied, i.e. The operation of market segmentation is carried out - dividing the total population of consumers into certain groups (segments), which are characterized by common needs, requirements for the product and motives for its purchase. The success of an enterprise in competition for the market largely depends on how well the market segment is chosen. The practical use of segmentation techniques involves finding the optimal balance between the processes of standardization and product differentiation. The business plan indicates the main consumers and the principles of their segmentation, it is noted what attracts a typical buyer of a given segment, and the circle of the most attractive segments is determined.
- assessment of market conditions - the purpose of any market research is to assess the existing market conditions and to develop a forecast for market development. At this stage, the number of buyers in each of the selected segments is assessed and demand is measured, market capacity is determined and the degree of demand satisfaction is determined. Based on these data, the most profitable segments for the enterprise - target markets - are selected.
- Selection of target segments - based on market conditions assessment data, the most profitable segments for the enterprise are selected. A segment in which approximately 20% of the buyers of a given market are located, purchasing 80% of the goods offered by the enterprise, can be considered promising. Here the position of the enterprise in the market is examined. For the first year of sales, this paragraph indicates:
The main consumers of the product, data is provided on orders for the product, contracts, written obligations available to the enterprise;
Potential consumers who have already expressed interest in the product;
Potential consumers who have not yet expressed interest in the product; explains how the enterprise intends to win them over.
- market positioning - the business plan describes the actions to bring the product to the market and ensure its competitive position in the segment, i.e. on the existence of market positioning.
Market positioning can go in one of the selected directions:
Filling the identified niche in the market;
Occupying a position close to that of one of the competitors, i.e.
competitive positioning.
- sales forecast - one of the main indicators associated with the forecast of market development is the forecast of volumes by month (or by quarter), the second year - by quarter (or by half-year), subsequent years - for the year as a whole.
2.5.2. Market Research Methodology
Market research is a systematic and methodological, ongoing or random search for the market or effective behavior in it. Depending on the objectives of business planning, research can be quantitative or qualitative. The purpose of quantitative research is to establish the numerical value of the market assessment and its main characteristics. The purpose of qualitative market research is to identify specific motives for certain behavior in the market.
Market Research Design- this is the design and construction of the research process, the development of its model, i.e. Research design can be considered as a project for organizing and conducting market research.
2.5.3. Market classification
The market research process begins with determining its type for each product or service. In this case, in the business planning process, you can rely on the following approaches to classifying markets:
1) in the sphere of social production:
Market of goods of material production (raw materials, food, machinery, equipment);
Market for goods of spiritual production (achievements of science,
technologies, works of art, books).
2) by nature of end use:
Market for industrial goods;
Consumer goods market.
3) by period of use:
Durable goods market;
Non-durable goods market;
Market for disposable goods.
4) by territorial coverage:
World;
Interior;
Regional.
5) according to the ratio of sellers and buyers:
Free competition market;
Market of monopolistic competition;
Oligopolistic market;
A pure monopoly market is one seller with a product that has no analogue or substitute, which allows the manufacturer to dictate terms to consumers.
6) by sales volume:
The main market where the bulk of the company's goods and services are sold;
Additional (auxiliary) market, which the company enters with a small part of goods (services);
Selective (selective) market, which is selected for
determining opportunities for selling new goods (services), i.e. for trial sales.
2.5.4. Market structure
The first question that must be answered during market research is who is the consumer of the Company's products and who may become one in the future. To do this, it is necessary to determine the market structure.
A means, a method of market differentiation based on studying and taking into account the individual needs of each group of buyers, is segmentation.
Market segmentation is the process of dividing, dividing the market into homogeneous (homogeneous) groups of buyers, each of which may require certain products and marketing mixes. Using segmentation, the following business planning goals are achieved:
Best satisfaction of people's needs and requirements, preparation of goods according to the desires and preferences of the buyer;
Increasing the competitiveness of both the product and its manufacturer, strengthening competitive advantages;
Avoidance of competition by moving to an untapped market segment;
Linking the company’s scientific and technical policy with requests clearly
identified consumer populations;
Orientation of the company's work towards a specific consumer.
Currently, the following segmentation features are used to divide the consumer population:
Based on socio-demographic parameters: nationality, religion, age, gender, marital status, education, cultural traditions, nature of work, etc.;
Economic parameters: per capita income and its structure, property value, amount of savings, level of housing provision, etc.;
Geographical characteristics: economic and political zoning, population size, population density, natural and climatic zone, etc.;
The results of segmentation are used to select a segment (or several segments) acceptable for the enterprise’s products, determine possible objects of demand and position the product.
2.5.5 Market assessment
Market conditions are the state of the market, characterized by the relationship between demand and supply of goods (services).
Demand represents an effective need. It is studied at various levels. You can determine the demand: for specific types of goods; for the goods of this company; for goods of this industry; the entire domestic market; regionally.
Market demand is functional in nature. It is influenced by many factors. Among them: demographic, general economic, socio-cultural, psychological, as well as various activities carried out under the marketing program.
Volume of demand- this is the quantity of goods that the buyer is willing to purchase under given conditions within a certain period of time. If at least one of these factors changes, the volume of demand for this product will also change.
Demand for a company's product acts as a certain share of total market demand. It is also functional in nature. In addition to the factors that determine the amount of total demand, it is influenced by factors that influence the share of the company's goods in total sales in a given market.
The task of determining demand is quite difficult. It is solved by using the market research methods described above.
Determination of future demand is carried out using forecasts, through the use of various forecasting methods, taking into account existing survey trends, the effects of various factors in the future and expected marketing efforts.
The determination of the price elasticity coefficient of demand complements the demand forecasting procedure.
2.5.6. Selection of target markets
The target market is the most attractive market segment for the company at the moment, mastering which becomes its main task. It must be sufficiently capacious, have prospects for development, free or relatively free from competitors, and be characterized by some unsatisfactory demand.
The task of choice is always difficult. The selection of target markets is carried out by taking into account segmentation criteria, as well as data from assessing market conditions.
Segmentation criteria- this is an indicator of how correctly the company has chosen a particular target market for its activities. Let us list the segmentation criteria most commonly used in business planning practice.
Quantitative boundaries- these include the potential capacity of the segment, i.e. answers to questions about how many products and at what cost can be sold on it, to how many actual and potential consumers, what is the area of the segment, what resources will need to be used to work in this segment.
Segment availability- is it possible to obtain channels for distribution and sales of products, is it necessary to reorient our own sales network, what is the situation with the availability of warehouses, stores, and cargo processing points.
Information saturation of the segment- is it possible to obtain the necessary market information to create a data bank for the segment, are there closed zones in the segment.
Segment materiality- determining the strength of a selected group of consumers, whether it is falling apart, whether its needs in relation to the product being produced are stable; otherwise, you may end up in a segment where competitors have a strong position, or offer a product with unclear targeting characteristics that will not be recognized by consumers.
Profitability, segment profitability - as a rule, the assessment is carried out based on standard indicators: profit margin, return on invested capital, dividends per share, increase in the total profit of the enterprise. Sometimes a large enterprise is guided by the prestige of a given segment and the goodwill of public opinion.
Protection from competition - it is important to correctly weigh your own chances of success in this segment, objectively assessing the capabilities of competitive firms.
2.5.7. Market positioning
Market positioning is a technology for determining the position of a product in individual market segments.
Positioning goal- research of an existing or emerging opinion, analysis of assessments of buyers or their group regarding product parameters in order to optimize them in accordance with the wishes and requirements of consumers and, accordingly, create, through marketing activities, a product position that will provide the product with specific advantages in a given market segment of the target market.
This is an assessment of the market, its analysis according to several parameters. In order to draw any conclusions about the potential profitability of a project and its payback period, it is necessary to calculate:
- Market volume (demand level).
- Level and nature of competition.
- Mechanisms and methods of work of competitors.
- Market trends (growth, stability, decline).
Let's try to find approaches to independently study these parameters. Of course, in most cases, conducting a rough analysis (“on the knee”) is not enough. However, with its help you can determine whether it makes sense to work with the idea further, whether it is necessary to contact specialists in different fields - or whether it is better to look for another concept.
Determining market size
First of all, you need to understand and understand well who your clients (target audience) are. Your client is the one who pays you money.
Volume is calculated either in terms of the amount of money paid for goods and services per unit of time (per month) or in terms of the number of transactions (number of goods sold).
It is not always possible to accurately determine the size of a particular sector or the solvency of the target audience. However, at the first stage, when it is decided to be or not to be an idea, it is important to understand at least the lower bar “no less than.” If the ceiling allows you to hope for a significant profit when capturing, for example, 10% of the market, you can continue to work with the project.
Demand research methods
The following techniques are usually used.
| Method | The essence | Features, Notes |
| Customer monitoring | Monitoring existing sales, determining the turnover of the most significant competitors. Tracking advertising, search query statistics, customer flow in the store, and so on. Very broad group; varies greatly across different sectors of the economy. | For some areas it is quite simple to carry out (some b2b services), for retail it is more difficult (monitoring sales in a store requires time and resources. Indirect observation methods (for example, by receipt number at the end of the day) are less accurate). |
| Interviews with experts | Simply ask questions to wholesalers, manufacturers or experts in the field. | Not very high accuracy, unless the expert is engaged in research of this particular niche, and the wholesaler (manufacturer, importer) is not a monopolist. |
| Statistical reports and data | Obtaining statistics that may be indirectly related to a specific product or service. Some studies are paid. | Government statistics are usually available free of charge, but are characterized by low efficiency and accuracy. Extrapolation of data should be done with caution (for example, the number of fractures per year does not equal the number of clients of a paid clinic). |
| Consumer surveys | Interviewing a sufficiently large number of representatives of the target audience. | Relatively low accuracy: the declared features of economic behavior do not always coincide with the real ones. Particular care is required in survey design and interpretation. |
Of course, there are several more ways. However, these four are the ones that are used first. This is enough for initial marketing research.
Another indirect option is to try to estimate what competitors’ costs are (for rent, staffing, advertising, etc.). Obviously, since businesses exist, they are profitable, or at least not too far from the break-even point.
Determining the level of competition
For most niches, an express method of assessing competition using search engines is now relevant. Just enter keywords that your potential buyer or customer might enter (for example, for a web studio it could be “ “). And look at the first 3-5 pages in the search results, noting:
- Number of official websites of competitors.
- The amount of contextual advertising (the more, the greater the competition).
- The quality and attractiveness of competitors’ websites (the better and more modern the resource, the more expensive it is; the presence of high-quality websites in the search results means that companies are ready to invest seriously in advertising).
You can also probe your rivals’ spending on contextual advertising by using the Yandex.Direct “Budget Forecast” tool.
In addition, the following sources can be of great benefit:
- Advertising publications.
- Directories.
- Publications of major thematic exhibitions.
This will allow us to identify the number of competing firms and their approximate spending on advertising; In addition, using these methods, you can determine how they position themselves (what USPs they offer to their clients).
Market consolidation assessment
Quite a complicated process. A good way to identify it is to conduct a survey among the target audience - “which company providing such and such services do you trust?”
You can also try to find the most visited corporate website in the niche. This method is not yet relevant for all businesses; Internet dominance does not always mean complete success.
When identifying leaders, it makes sense to become more familiar with their methods of work. It makes sense to pretend to be a potential client and come to the “enemy” office.
Trends and Trends
This does not mean the trends that were taken into account when generating the idea, but those that are inherent in this particular market.
The approaches are universal: surveys, analysis of statistics over several years (evaluate, for example, the level of demand five years ago, three years ago and now), search for new technologies and solutions that may (or may not) change the situation.
The world's leading brands invest large sums in marketing research, the results of which largely influence key management decisions. The cost of such research starts from 60,000 rubles and above - astronomical amounts, especially for small businesses. However, knowing how to analyze the market, you can obtain key information yourself.
Kinds
First of all, you need to clearly define your goals. The subject of your research depends on what information you want to obtain. The main structural components of the market analyzed by the entrepreneur are:
- market condition (capacity, conditions, trends, reaction to new products);
- the share of different companies in the market, their capabilities and prospects;
- target segments, their behavioral characteristics and product requirements, level of demand;
- price level and profit margin in the industry;
- free niches in which you can do business;
- competitors, their strengths and weaknesses.
Speaking about how to correctly analyze the market, it is worth emphasizing that a specific, understandable goal allows you to reduce costs, not waste time processing useless information, and immediately select the most effective research methods.
General plan of market analysis
Comprehensive marketing research is usually carried out at the stage of starting or expanding a business. Its goal is to collect as detailed and comprehensive information as possible about a specific niche. How to analyze the market?
Step 1: Gathering Basic Information
The “starting point” in conducting a comprehensive analysis is Market Research (actually, the study of the market and its prospects). Ideally, it is necessary to analyze information for the last 3-5 years.
The key indicator here is market capacity. In simple terms, this is the amount of goods that consumers can buy in a certain period of time - a month or a year. The formula used for calculations is:
| V=A×N |
where: V is the market size, A is the number of the target audience (thousand people), N is the rate of product consumption for the period.
Based on this indicator, they calculate what maximum level of sales the company can achieve in a given region.
The next criterion to pay attention to is the level of demand. It is important to take into account the dynamics of the market, whether it is developing or, on the contrary, declining. In the first case, it is necessary to determine its potential and limits of growth, and at the stage of stagnation, it is necessary to understand how long this will continue.
Additionally, they study factors influencing the market, the share of key competitors in total sales, and methods of selling products.
Based on the data obtained, it is necessary to identify the main trends and directions of development, as well as analyze the market prospects - what consumers are choosing now and how their preferences may change in the foreseeable future.
Tip: Up-to-date statistics and research on individual markets at the international and national levels can be found in industry journals and economic reports.
Stage 2: Identifying target segments
So, we know the volume of the analyzed market as a whole. Now it is necessary to determine which consumer groups bring the company the main profit, what unites them. To segment the audience, different criteria are used - gender, age, profession, income level, social status, interests, etc. Depending on the priorities, the importance of individual factors may differ.
To decide which segments to target first, additionally analyze:
- volume of each segment (number of potential customers);
- geographical location;
- accessibility to different consumer groups;
- Estimated costs of time and finances to start activities.
A competent choice of target audience in the future will save the entrepreneur from unnecessary costs and will allow him to direct resources to attracting the most “profitable” buyers.
Stage 2: Study of external factors
Any market is constantly exposed to external influences. Modern marketers identify 6 types of external factors that influence organizations:
- political (state policy in the areas of transport, employment, education, etc., taxes);
- economic (inflation level, interest rate);
- social (population, worldview, level of education);
- technological;
- legal (laws governing the creation and operation of enterprises);
- environmental.
Some trends appear slowly and are easy to predict - for example, back in the 70s, society began to discuss environmental issues, and now eco-friendly business has become a global trend. At the same time, the economic situation can change at any moment, and it is simply impossible to say with certainty what will happen in 3-5-10 years.
Stage 4: Competitor Analysis
Speaking about how to learn to analyze the market, special attention should be paid to studying enterprises that are already operating in this industry. First of all, you need to learn as much as possible about the companies themselves and their capabilities:
- technologies used in the production of goods and services;
- availability of patents and unique technological advantages;
- personnel qualification level;
- access to limited, rare resources;
- possibility of obtaining additional investments.
The next step is to study competitors' products and services. It is necessary to evaluate “through the eyes of the consumer,” taking into account both rational and emotional factors.
All that remains is to systematize the data and objectively compare the main market players. For convenience, we suggest using a simple template.
By completing the table, you will get a basic understanding of the main market players and their activities, and you will also be able to compare their performance with yours.
Stage 5: Price Analysis
To see the full picture, it is necessary to divide all market players into price segments - economy, premium, etc. It is also important to understand the price structure (cost, promotion and advertising costs, markup) and approximately calculate the profit from each sale.
It is aimed at identifying the characteristics of representatives of the target audience of a commercial offer. This type of research may be similar to or different from marketing analysis. This depends on whether, in the course of market research, it is necessary to address the marketing processes already applied to it or to predict the reaction of market representatives to the possible use of a particular marketing strategy.
Main tasks and methods for solving them
The main objective of the study is to identify the characteristics of consumers. It should answer questions about what they want to buy and what they trust, what is necessary for them, and what they can do without. Nowadays, the most important criterion has also become the solvency of representatives of those groups of the population that can become consumers.In the course of practical work, first of all, prices for goods that fully or partially correspond to the customer’s product range are examined. Various periods are analyzed and their characteristic features are revealed. For example, the very fact that people bought something at a certain price during the year may not make any sense if a new round of economic crisis led to the bankruptcy of a number of city-forming enterprises.
Market representatives are certainly segmented. Groups are identified that are united by common characteristics - gender, age, expected income, geolocation, or attitude to some risk group.
The most difficult process is identifying market trends. It is for this reason that market analysis can use some marketing tools. They could be test sales or sociological surveys.
Stages of the study
Specific methods of work are directly related to the original goal. When a new business arises for the region, they focus on finding answers to basic questions.- whether the commercial offer will be in steady demand;
- what price range is acceptable;
- what business development strategy may be the most promising;
- what risks should be taken into account.
If the research is carried out for an existing business
The need for the work of market analysts does not always arise at the time of opening a new enterprise. Sometimes companies that have been operating for several years also face situations related to the need to re-examine the features of their market.Most often this is caused by the fact that some obvious problems have arisen. They may be:
- demand for a product that turned out to be lower than predicted;
- lack of certainty in the company's competitive position;
- insufficiently clear understanding of the social portrait of its consumers;
- searching for a method to reduce costs.
In any case, this is a complex research work that must be completely transparent to customers and end with the preparation of a package of proposals for the formation of the most effective business development strategy.