In the field of marketing research, one of the most common methods is market analysis. In addition, such studies are relevant for both macroeconomics and microeconomics. Assessing the results of such an analysis, the enterprise management makes short-term and long-term decisions. Market conditions - this is the economic situation that has developed on the market at a given time or during a certain period under the influence of a combination of circumstances. This phenomenon will be considered in more detail in this material. Readers will have the opportunity to learn about the methods of analysis of the situation and its goals.
The essence of the concept
Even under the conditions it is customary to understand the complex of criteria that form the situation. It includes a number of factors. First of all, it is necessary to highlight the degree of market balance. In this case, we are talking about the ratio of supply and demand. In addition, market conditions are development trends. They can be formed or changed.
The situation is also characterized by the level of stability or variability of the main market parameters, the volume of operations on the market, the level of business activity, the magnitude of commercial risks, the degree of competition. As well as the market position at a certain stage of the seasonal or economic cycle.
Assessment purpose
Each new agreement provides for an analysis of market conditions. These activities include monitoring the situation prevailing in a particular industry. This approach allows you to timely record the ongoing changes. In addition, the analysis of market conditions makes it possible to carry out a long-term forecast regarding possible trends in its development. In turn, the formation of such a scenario allows you to set actual goals for the enterprise, develop a behavior strategy and plan the organization’s activities for a certain period of time.
It should be noted that the most important study of changes in market conditions is when the company plans to start developing, manufacturing and launching new products on the market.
Analysis Features
It must be emphasized that when working on new goods and services it is advisable to conduct a series of studies that will make the analysis more objective and reliable. First of all, attention should be paid to the general economic situation in the country, to analyze the growth rate or, conversely, the decline in incomes of citizens. In addition, the state of affairs in individual sectors of the economy, as well as the situation in specific commodity markets, is of great importance. You should also analyze the factors that can affect the rapid change in the volume of sales of a product, the balance of foreign trade, the cost of goods and services and other indicators.
Among the important factors affecting market conditions in different areas of the national economy, such as current political and foreign economic conditions, scientific and technological progress, and the degree of monopolization of economic sectors are highlighted. As well as the level of state regulation of economic relations, inflation, devaluation, the state of affairs in the legal and judicial spheres.
Research methods
As you can see, market conditions are a complex phenomenon, which is also subject to rapid changes.This phenomenon is a consequence of the symbiosis of many individual components and events, the change of which is subject to the laws of probability. To assess the situation, a certain set of quantitative and qualitative characteristics is used, which can be studied and analyzed.
What tools are used to study this phenomenon? Statistical methods for collecting and analyzing data on market conditions, as well as economic and mathematical methods. In addition, the means of probability theory and mathematical statistics are widely used. The use of such methods in market research is an opportunity for enterprises and organizations to analyze the current situation in various markets and, in addition, to determine the scenario by which they will develop in the short and long term.