The most common direction in marketing research is market conditions. The task of studying the current situation is relevant at both the macro and micro levels. Based on market assessments, the company makes operational and long-term decisions.
Market conditions are a specific economic situation that has developed in the market in at the moment or a period of time under the influence of a complex of factors. Market conditions also mean the set of conditions that determine the market situation.
Market conditions include:
The degree of market balance (primarily the ratio of supply and demand);
Formed or changed development trends;
The level of stability or variability of the main market parameters;
Extent of market operations and degree of business activity;
Level of commercial (market) risk;
Strength and scope of competition;
The position of a market at a particular point in the economic or seasonal cycle.
Each transaction on the market involves an assessment of the situation. Once the market has been selected, it is necessary to conduct ongoing observations of its condition in order to respond in a timely manner to changes that occur. Market research is also necessary to predict long-term trends in its development. The compiled forecast should be the basis for setting goals, developing a strategy and planning the company’s activities. Market research becomes especially important when an enterprise intends to begin the development, production and introduction of new products to the market.
In this regard, it is very important to study the economic situation in the country, individual sectors of the economy, in individual commodity markets, as well as the reasons under the influence of which sometimes very rapid changes in production volume occur, foreign trade, prices for a particular product.
The most important market-shaping factors influencing the state and development of commodity markets include changes in foreign economic and political conditions, the development of scientific and technological progress, monopolization of the economy, government influence on the economy, and inflationary processes.
The situation is a complex and rapidly changing phenomenon, consisting of many individual elements and actions, the development of which is subject to probabilistic laws. It is measured by a certain range of qualitative and quantitative characteristics that can be measured and assessed.
When studying the situation they use statistical methods collection and analysis of information on the state of the market, economic and mathematical methods with the widespread use of methods of probability theory and mathematical statistics.
When studying market conditions, it is advisable to be guided by certain methodological techniques, allowing us to analyze the current situation in the markets and develop a forecast of the immediate prospects for the development of the market.
Sincerely, Young Analyst
What is its significance in modern conditions?
General information
IN in a broad sense When economic conditions are mentioned, this means a certain set of conditions that have developed in the market at a given point in time. You can say it a little differently. The economic situation is:
- General position market relations, which have developed at a given point in time.
- List of factors and influence on the functioning of an individual farm, in which internal and external factors interact.
In a narrower sense, it may mean a confluence of some events or circumstances (for example, a crisis or a household, enterprise, sector, the entire economy). Thus, we can say that the concept of conjuncture includes a set of mutually related conditions that determine the transition of the object under consideration from one state to another. Depending on the subject under consideration, directions are divided. So, there are economic conditions, individual commodity markets, and so on. Each of these areas is studying its own layer of economic life.
Cyclicality
This process underlies the functioning of the market. To understand cyclical patterns in economic development, it is not enough to simply record price fluctuations and stock movements. It is also necessary to know the characteristic features and features of each phase, as well as the transitions between them. Thus, they talk about one situation when the economy is in a state of crisis. A completely different state of affairs is observed with the rise of the economic sector. Each conjuncture has its own characteristics, or rather its this direction, requires familiarization with the academic literature in order to have a full understanding of this issue. But as an example, several special cases can be cited. So, imagine that we describe the current situation using the traditional aggregate supply curve. Consider: In this case, the curve will shift to the left and up (if compared with the rise). This occurs due to an increase in production costs, which is expressed in constant prices. In other words, while maintaining the same cost (adjusted for inflation) of product sales, the entity will be able to create a smaller volume of products. Now let's talk about characteristic features, which the economic situation has.
Inconstancy and inconsistency
This is expressed in the variability of states and frequency of oscillations. Some factors may have a short-term impact on the market, while others have a more widespread impact. An example of volatility is the stock market. He reacts extremely quickly to even the most minor changes that occur in the economy, politics, public life and so on. Regarding the inconsistency, we can say that this is expressed in the fact that there can be indicators of both decline and rise at the same time. As an example, we can cite the situation in Russian Federation, which was in January-October 1997. Then there was an increase in GDP and an increase in industrial output. At the same time, there was a drop in production.
Unevenness and unity of opposites
Changes in economic conditions do not occur equally everywhere. If we talk about unevenness, then it can be noticed in cases where the direction of growth dynamics for various indicators coincides, but at the same time the rates differ. In such cases, there are always more of some goods than others. As an example, we can cite Ukraine in 1996. Thus, more than 85% of all products sold were in the raw materials sector, which is very bad for the state. Regarding the unity of opposites, the following can be said. War has a negative impact on trade and peaceful development. But when the political conflict in Iraq became more complicated in 1998, and the threat of invasion from the United States hovered over the country, the volume of demand jumped sharply. This is how economic conditions can depend on political realities. Conditions in in this case can have a very positive effect. Thus, at the end of the second millennium, the reserves of silver, which was required to create photographs, began to fall sharply. This has prompted the creation of more efficient and optimal digital cameras.
Peculiarities
When using elements of the analysis methodology and then forecasting market conditions, it is necessary to monitor the activities and nature of the actions of cyclical factors. You should also take into account causes and processes, the development of which, due to their nature, does not involve repetition in the implementation scheme. These are: inflation, scientific and technological progress, concentration of capital and production, and so on. In addition, they can have an impact social conflicts, natural disasters, speculative factors, emergency situations and the like.
Conclusion
As you can see, the economic situation is not the same simple thing. Of course, in order to understand it and benefit from it, one article is not enough. But if you are interested in the topic, there are plenty of opportunities to study it. What is important in human society is not only the acquisition of knowledge, but also its successful application in practice. Therefore, if you have a desire and vision for yourself in the economic sphere, this is a pretty good start, which can lead to prosperity and success.
The market as a complex socio-economic category can be characterized by numerous indicators depending on the purpose of the study. Market analysis allows you to:
- determine the parameters of the market, identify the position of the enterprise in it;
- identify competitors in the industry and assess the level of competition;
- study the need and demand of consumers for a product (service);
- study the product, its place in the market and the degree to which it satisfies customer needs;
- predict (model) product prospects;
- determine areas of activity to meet the changing needs of customers.
Market forecast presents possible options changes in the structure and volume of consumption, which are compared with estimates of the development of product production, which makes it possible to obtain forecasts of sales volume, demand, supply and the relationship between them.
When compiling a market forecast as part of an overall marketing forecast, information from a variety of analytical marketing research(environment, consumer, product, enterprise).
Market analysis
Market conditions, market conditions - the economic situation in the market, characterized by levels of supply and demand, market activity, prices, sales volumes.The market position depends on market conditions, i.e. on the state of supply and demand. In order to understand the market situation, it is necessary to define market conditions.
Market conditions are the current economic situation, including the relationship between supply and demand, price movements and inventories, the order portfolio by industry and other economic indicators. In other words, market conditions are a specific situation that has developed on the market at a given moment, or a limited period of time, as well as a set of conditions that determine this situation.
The main goal of studying market conditions is to establish the extent to which the activities of industry and trade affect the state of the market, its development in the near future, and what measures should be taken to better satisfy the population’s demand for goods and to use existing resources more rationally. manufacturing enterprise possibilities. The results of the study of the situation are intended for making operational decisions on the management of production and sales of goods.
An integrated approach to studying market conditions involves the use of various, complementary sources of information; combination of retrospective analysis with forecast of indicators characterizing market conditions; application of a combination of various methods of analysis and forecasting.
The study of market conditions is based on the analysis of indicators characterizing the production and supply of goods in this group, volume and structure retail sales, inventory in enterprise warehouses, wholesale and retail trade.
When studying market conditions, the task is not only to determine the state of the market at one time or another, but also to predict the likely nature of its further development for at least one or two quarters, but not more than a year and a half. The results of the analysis of projected indicators of market conditions in combination with reporting and planning data make it possible to develop measures in advance aimed at developing positive processes, eliminating existing ones and preventing possible imbalances.
By its nature, the forecast of market indicators is a short-term forecast. Its specificity lies in the fact that the accuracy of short-term forecasts increases compared to annual ones, but this accuracy decreases.
Tasks when studying market conditions
- In a certain period of time, select from information sources specific and the latest information on the entire market, namely, identify all competitors, study the range of products, study the pricing policy, determine the circle of people for whom your company will produce products, and other indicators.
- Systematize these indicators.
- Establish the strength and scale of influence of the relevant conjuncture-forming factors, their relationship and interdependence and direction of action.
- Identify the activity of the interaction of these factors in the near future to develop a forecast.
To analyze market conditions, research is carried out:
- general economic conditions in the country, region;
- market conditions commodity market;
- demand;
- offers;
- trends in the development of supply and demand for a given product (service);
- development and satisfaction of needs for a product (service).
- volume and dynamics of gross national product, national income, production in sectors of the national economy;
- volume of investment;
- average and real value wages;
- number of workers in the national economy and industries;
- indicators of the state of the domestic market (inventories, volume and structure of retail trade turnover, etc.);
- dynamics of wholesale and retail prices, inflation indices;
- standard of living of the population;
- dynamics of foreign economic activity;
- stock market indices;
- unemployment rate.
- consumer sector (population);
- industrial consumption;
- government consumption;
- export.
The volume of demand depends on the purchasing power of the population, which is determined by the level of real income, conditions for obtaining loans, the amount of savings, and the ratio between expenses for the purchase of goods and services. The amount of funds of the population allocated for the purchase of goods constitutes the volume of effective demand.
The market capacity of a specific product, i.e. the volume of goods consumed (purchased) over a certain period of time is defined as the volume of production, taking into account changes in inventories of goods and the balance of exports and imports. When the demand for a product is not fully satisfied, the phenomenon of unsatisfied effective demand arises, which is not typical for market economy or manifests itself in the initial stages of the appearance of a new product on the market.
Market capacity can also be determined using data on realized demand or the volume of retail turnover of a given product. When carrying out the analysis, it is necessary to remember that cost indicators of demand include wholesale and retail markups on goods. In this regard, it is recommended to supplement the cost analysis with an analysis of demand in physical terms (pieces, kilograms, liters), taking into account the structure of retail and wholesale prices, as well as their changes.
The volume of industrial consumption of the commodity market is determined by the amount of consumer purchases. Among the factors one can note general economic, sectoral, and intra-farm factors.
The volume of government consumption is determined by the government order for goods. The main factors in the development of this market sector are the state’s needs for this product and its financial capabilities.
The volume of goods exported reduces the market capacity. Export quantities are registered by state customs services, and data on them are published in statistical collections. Among the factors influencing export supplies, the following should be noted:
- competitiveness of the product on the world market;
- foreign economic policy of exporting and importing countries;
- export capabilities of the exporting country.
Analysis of trends in the development of supply and demand in the market under study serves as a logical continuation of the previous stages of analysis. At this stage, the main task is to identify trends in the dynamics of cost and natural measures of demand and supply, determine quantitative and qualitative factors influencing volumetric and structural changes in demand and supply, compare the identified trends in the country’s market with trends in other regions and other countries; determine the stage of the life cycle at which the product is located. The results of this analysis are a reflection of the process of satisfying the needs expressed by buyers of the product.
The study of the commodity market conditions ends with an analysis of the development and satisfaction of needs, during which the development of a need expressed and satisfied through a product, the emergence of new varieties of it, or, conversely, a decrease in need or its disappearance are monitored. In addition, the possibility of satisfying the need with the help of another product - a substitute, probably not yet on the market, is being studied.
The tasks of needs research are qualitative in nature and are solved mainly through surveys of consumers and specialists - marketers, commodity experts, sociologists. The results of the analysis of the product market conditions, together with the forecast of the general economic situation, become the basis for the development of the market forecast.
Market conditions- this is the economic situation in the market, which is characterized by certain parameters (the level of supply and demand, the level of salaries, exchange rates, etc.).
For example, we can say that today's exchange rate to some extent shows the current market conditions. Or the current volume of demand for cool drinks shows the state of the beverage market. That is very roughly speaking, conjuncture is a situation.
General economic conditions characterizes the global state of the world economy or economic condition of a particular country in a certain period of time. The situation in commodity markets is designed to analyze any fluctuations in the production and marketing of certain goods.
Features of the situation
To the main peculiarities of the market situation can be attributed:
- instability,
- inconsistency,
- as well as the unity of opposites.
On the situation is constantly influenced factors such as:
- technological progress,
- monopolies,
- public policy,
- economic problems
- seasonality.
TO unstable factors can be attributed
- natural disasters
- social conflicts
- crises
An integral part of the methodology of this issue is analysis and forecasting based on the data obtained. It is extremely important to establish the activity of certain factors and the degree of their cyclicity. As for the cyclicality of the market itself, they are random fluctuations, which differ in length and dynamics.
Each economic cycle is characterized by:
- phase of high market conditions (rise),
- recession phase
- depression phase (low economic activity within the state).
On average, one such cycle, which is characterized by three phases, lasts up to five years.
Phases of market conditions
Rising phase
Rising phase characterized by growth in income, employment, demand and money turnover in general. In turn, this causes a significantly greater load on production facilities that offer both goods and services to the relevant market. An increase in demand also causes a natural, but often very slow, increase in prices themselves. It is appropriate to emphasize that it is precisely the moment of transition to recovery that leads to the fact that supply does not keep pace with demand. The inflation factor is also activated.
Decline phase
Sooner or later, another negative factor will become characteristic of the recovery phase, which causes the arrival of phases of recession (downturn)– a fall in demand from entrepreneurs for the means of production of goods or services. Because of this, the demand for this product segment is undergoing a sharp decline, which causes a reduction in production capacity, on which the means of production themselves are manufactured for entrepreneurs.
This is the moment when the unemployment factor begins to become active - jobs disappear. Incomes are naturally declining. Now the industrial sector that produces consumer products is beginning to feel the decline. Since the consumer’s income has significantly decreased, entrepreneurs sooner or later decide to reduce their staff. Profits are falling again, unemployment is rising, wages are falling, prices are slowing down in order to somehow help both entrepreneurs and the manufacturing industry survive.
Deress phase
That's when it comes depression phase. It is necessary so that a particular state has the opportunity to survive the recession and slowly get back on its feet economically. That is why it is extremely important to study market conditions and understand what exactly influences the current situation. Knowing all the influencing factors, or most of them, will help you create the right strategy in which you can minimize the damage from the transition between phases of market cyclicality.
(3 ratings, average: 10,00 out of 5)Market conditions
- this is the economic situation that has developed in a specific period of time in the market, which is characterized by the relationship between supply and demand, the price level, inventory and other economic indicators.
The study of market conditions includes the processing, analysis and systematization of quantitative indicators and qualitative information characterizing the development of the market in a given period of time. The choice of a system of indicators is determined by the goals of a particular study, for example, analysis of market development, analysis of the market situation over a certain period of time, changes in the technical and economic characteristics of production.
All market-shaping factors that stimulate or constrain market development are classified into:
constant - state regulation of the economy, scientific and technological progress, inflation, seasonality in the production and consumption of goods.
temporary - factors that periodically influence the situation (natural disasters, social conflicts, emergency situations).
cyclical - in the development of markets there may be a certain repeatability, cyclicality caused by seasonal changes in supply and demand, life cycles goods (introduction of goods to the market, growth, maturity, decline), shifts in the reproductive structure, fluctuations in investment activity, changes in economic policy.
non-cyclical - determine the specifics of production and sale of specific goods. Impact various factors on the process of production and circulation of any product allows us to identify connections between ongoing events and the causes that caused them. It is the impact of various factors on the process of production and circulation of goods that is reflected in the movement of market conditions.
The task of market research is to determine the degree of influence of individual factors on the formation of the market situation at a certain point in time.
It is possible to solve this problem if we conduct a study of the situation taking into account new phenomena arising in the sphere of production. In order to imagine the situation happening on the market, it is not enough to know changes in prices, stock indices, stock movements and fluctuations in other indicators. The study of market conditions requires knowledge of the patterns of economic development and the interactions of markets in the reproduction process.
There are three levels of market research:
General economic - shows the state of the world economy or the economy of a single country, a group of countries, emerging under the influence of market-forming factors, includes the following aspects: the economic potential of the economy and its elements (natural, production, labor, financial resources, scientific, educational and infrastructural potential, corporate structure, scale of concentration, specialization of production and sales, organizational forms state regulation of the economy, etc.
Industry - shows the situation in a sector of the national or world economy.
Individual product - shows the position of an individual product on a global, national or regional market scale.
One of the main concepts of market research is the study of changes in the dynamics and price ratios. It is necessary to establish the reasons that caused the shift in the price level or structure. It is also necessary to analyze changes in production technology, conditions of consumption of goods, and take into account changes in wholesale and retail trade. Studying these changes helps to better understand the direction of price movements.
Methods for studying the conditions of any commodity market, economy or industry are developed on the basis of indicators that can help determine the direction of development of production, trade and finance in the future.
When studying market conditions, it is necessary to consider indicators that can quantify the various changes that occur in the economy of the industry under study.
The quantitative state of the situation can be assessed using the following groups of indicators:
1. The volume and dynamics of production as a whole, the amount of investment, the level of employment, wages, and data on orders are measured. These are the so-called production indicators.
2. Effective demand, volumes of sales of goods on credit, data on retail and wholesale trade
3. Volumes, dynamics, geographical distribution of interregional relations, volumes of imports and exports, volumes of cargo transportation This group of indicators belongs to the group of interregional and foreign economic relations.
4. Monetary circulation. This assessment group includes prices of shares and other securities, interest rates, sizes of bank deposits, exchange rates.
The main characteristic of market conditions is the degree of balance between supply and demand. It manifests itself in the behavior of prices and the speed of turnover of goods. This assessment allows us to determine the type of situation.
Types of conditions are distinguished into:
Favorable - a balance between supply and demand is achieved, prices are kept at a stable level.
Unfavorable - demand lags behind supply, which leads to an increase in inventory, a slowdown in the turnover of goods, and difficulties in selling goods.