We continue the series of articles on marketing analysis. As you know, such studies require careful collection of very different information, from the accuracy and availability of which the outcome of work depends. Even the most insignificant factor of environment can tremendously affect a certain calculation and force the researcher to consider alternative optimization scenarios. Therefore, if you have received an assignment to write such paper, then you need to immerse yourself completely in this work. This is not creativity and not fantasy, they do not matter here. Only facts, figures, and decisions matter.
So, this type of analysis is collection of detailed information about consumers of the market. This is one of the most important steps, as it allows us to examine the demand in the market in detail and to find free niches for business development.
In order to obtain exhaustive information about consumers, it is necessary to divide the market into homogeneous segments and study each of them, to evaluate the existing patterns of consumer behavior in the market, to understand how a consumer has become accustomed to interacting with the company's goods and competitive products, as well as the key reasons for buying and the main reasons for rejecting the company's goods.
Segmentation of the Market
In order to do this, you need to start by dividing the market into key groups or segments. This may seem a simple task, but in reality, it is not so easy. Many people often make a wrong or too subjective division that does not show a true picture. Then, you must describe each segment using socio-demographic, geographical, behavioral, and psychographic criteria for segmentation. If you do not know anything about these criteria, you can always seek help from specialists on crazyessay.com. And on our part, we will cover this topic in the following articles.
Next, you need to determine the size or market capacity of each segment. There are at least three ways to calculate the size, depending on its characteristics.
For each segment, make a ranking of the factors influencing the purchase. And, finally, rank segments in relation to loyalty to the product of your imaginary or real company.
Current and Potential Clients
Here, it is necessary to describe their distinctive features, using the same criteria as in the previous section. This should be done in the classical form of comparative analysis.
Identify key players in the consumer market who are involved in the process of making a purchase of goods. There are four types of these players:
- Direct buyers of the goods;
- Actual product users;
- Authorities that can influence the decision to buy;
- Those who pay for the purchase.
Customer Interaction with the Product
We will look at a sequence of recommended actions for analyzing this interaction. If you do not know the answer to one of the questions, then you can skip it. But take it into account and try to avoid information gaps in the future.
- Describe the basic properties which make the reason why a consumer buys your product, evaluate the level of customer satisfaction with the goods;
- Describe the process of buying goods: in what quantities, in combination with what other goods they are bought;
- Estimate spontaneity of the purchase;
- Is the product bought in addition to something or not?
- Describe the process of using the product: how a buyer uses it, at what time, under what conditions, how often, alone or together with family members;
- Describe the usual and unusual situations of the use of the goods. Are there any situations that require special characteristics of the goods?
- Does a buyer take a loan when buying your product or not?
- Does the location and layout of the goods affect the purchase?
- Do buyers have any difficulties in finding, buying, using, disposing, and processing the goods?
Sales Channels Through Which the Purchase of Goods Is Made
Identify all channels a buyer uses to purchase your goods: retail and online stores, catalogs, wholesale companies, or your company itself. Then evaluate the key trends in customer activity in the identified sales channels. Think about how they can affect the level of goods sales.
Factors Affecting the Purchase of Goods
Identify these factors and rank them according to the degree of influence. These factors include: product properties, after-sales service, location, layout, price, novelty, decrease or increase in income, increase in client status, etc.
Then, evaluate how the behavior of customers changes when you are carrying out an advertising campaign, promotions, reducing or increasing prices while improving quality of the goods. Is there seasonality of demand for the goods? Is there a correlation of demand with certain dates or important events?
Reasons for Buying Goods in the Market
Prepare a comparative analysis of the product properties and the ones of key competitors, compare the degree of satisfaction with your product and the competitors' one. Describe the benefits of your company's products and their advantages, compared to the competitors’ ones. Identify the key and additional reasons for buying a product, the so-called motivation to buy.
The Nature of Interaction with Competitors
Make a set of goods most preferred by your customers. Identify and rank the products of competitors which your customers switch to. Make a list of the most common reasons why your customers switch to competitors' products.
Reasons for Not Using Your Product
Describe those consumers who have never bought your product and who have had experience using it but have refused to make further purchases. Determine what needs of "non-consumers" your product can not meet, what requirements cannot be met. Make a set of points with descriptions of the key properties of products "non-consumers" buy. The final step is to assess the potential for transformation of "non-consumers" into consumers.
These are the main sections of this study. It is desirable that you describe each of them. Then your professor will be able to evaluate your knowledge better and will definitely pay attention to the fact that you have done a great job, collecting information and analyzing it. Thus, your research paper will be highly appreciated and should be remembered by your teacher.