Strategic Market Research and Demand Analysis
Market Research Process
1. Justification
Justify the need for information, evaluate the benefit-cost ratio, determine the scope, and assess the impact of the study.
2. Specifying Objectives
Identify the goals to be pursued, such as increasing market segments, measuring the acceptance of a new product, verifying product uses, or changing label design and packaging.
3. Research Design and Data Sources
Determine the research design and data sources. This involves asking: how will information be obtained? It requires a comprehensive action plan, specifying data types and sources of information.
4. Data Collection Procedures
Develop procedures and data collection methods using quantitative, qualitative, and mixed tactics. This includes observation, experimental tactics, and interview techniques.
5. Sample Design
Define the universe and determine the degree of confidence while specifying the error margin. Finite samples are less than 500,000; infinite samples are greater than 500,000.
Sampling Definitions and Methods
Sample: An element representative of the universe that possesses the characteristics of the system.
Sampling Methods
- Probabilistic: Every element is equally likely to be elected.
- Stratified (Laminated): Used when the universe is very large; involves proportional allocation or disproportional affixation.
- Multistage Shuffle: A complex sampling technique.
- Non-probabilistic and Mixed: Alternative sampling approaches.
Demand Analysis and Forecasting
Demand: The quantity of a good or service that is purchased at a fixed price to meet a need.
Demand Analysis: A study to demonstrate and quantify the number of individuals who require a good or service, considering prices and growth rates.
- Current Volume of Application: Derived from primary and secondary sources.
- Expected Volume: Projected demand during the duration of the project.
Consumer Characteristics: Analysis of the theoretical features of consumers.
Hypothesis: Raising or justifying a constant or dynamic environment for current and future demand.
Methodology for Variable Study
- Develop historical series for the variable of study.
- Integrate a trend forecast for use as a reference in alternative scenarios.
- Define the factors that influence the variable of study.
- Define scenarios (optimistic, pessimistic).
- Establish the expected variations of the variable of study in each setting.
- Identify and validate the model.
- Establish strategies.
Supply Analysis and Market Types
Supply (Offer): The amount of goods or services available to the market at a fixed price.
Factors: Price, quantity, quality of goods produced, number of competitors, market size, volume of product demand, and production cost.
Supply Analysis: Define location, size, characteristics, behavior, and future supply.
Types of Supply
- Free Market: Many producers; no dominant producer; quality and price are decisive.
- Oligopolistic: Characterized by few producers.
- Monopolistic: Controlled by a single producer.