Market Demand, Consumer Behavior, and Product Marketing Fundamentals

Market Demand and Sales Analysis

Global demand (or total demand) is the total amount of purchases of a product during a specific period of time. Company demand is the amount of purchases of a product from a particular company during that period.

Suman estimates the total sales made by a company dedicated to commercializing this product.

Market Share

Market share is a company's participation in the total value of sales, expressed as a percentage.

The Consumer

The consumer is the person or collective entity that satisfies a need or desire using a particular product.

Target Group (Target Market)

The target group of consumers is the entire set of people toward whom our product is directed. They need not be current customers; they are potential buyers of our product.

Types of Consumer Behavior

• Individual Behavior: Responds directly to individual motivations, needs, and purchasing behavior.
• Social Behavior: Refers to how the group influences the purchase decision process.

Customer Roles Based on Decision-Making Capacity

• Prescriber (or Recommender): The professional who recommends the product. Their opinion is highly valued by consumers.
• Buyer: The individual who decides to purchase the product.
• Payer: The person who spends the money to pay for the product.
• Consumer (or User): The user of the product.

Describing Purchasing Habits (The 7 Questions)

These questions are used to describe consumer purchasing habits:

1. What do they buy? (Types of products and brands)
2. Why buy? (Motivation)
3. Who purchases? (Decision maker)
4. How to buy? (Reflexive or impulse purchase)
5. When purchased? (Frequency/Timing)
6. Where to buy? (Location/Channel)
7. Quantity of product? (Volume)

Steps in a Commercial Research Plan

1. Definition of Objectives: Analyzing specific issues.
2. Plan Design: Determining the company's methodology.
3. Information Sources: Identifying primary and secondary sources.
4. Securing Data: Data collection.
5. Data Analysis: Interpreting the findings.

Forms of Information

Information sources are divided into:

• Primary Information: Information gathered directly (e.g., opinion surveys).
• Secondary Information: Information gathered from existing sources (e.g., statistical studies, journal articles).

Product Definition and Characteristics

Product Definition

A product is any good or service that has value to the user or consumer because it satisfies some of their needs and is capable of being marketed.

Product Types

Products are categorized based on characteristics, purpose, and industrial use:

• By Characteristics: Goods and Services.
• By Purpose: Durable Goods and Consumables.
• Industrial Products: Raw Materials, Components, and Production Equipment.

Brand

The name, symbol, or design that distinguishes or serves to distinguish a given product in the market.

Packaging

The container, made of different materials, that serves to contain, protect, handle, distribute, and present products during distribution and sale.

Label

The clearly visible identification element that provides relevant information about the characteristics, handling, and use of a product.