Market Price Study
Market price research involves the systematic and objective collection, analysis and evaluation of information on specific aspects of marketing issues to assist management in making important decisions. Market price research is not an end; it is a means to an end: improving decision making.
A market price study should serve to have a clear idea of the number of consumers that will have to acquire the good or service that is intended to be sold, within a defined space, during a medium term period and at what price they are willing to obtain it. Additionally, the market price study will indicate whether the characteristics and specifications of the service or product correspond to those the client wishes to buy. It will also tell us what type of customers are interested in our goods, which will serve to guide the production of the business. Finally, the market price study will give us the information about the appropriate price to place our good or service and compete in the market, or to impose a new price for some justified reason.
Considerations during a market price study
Analysis of the demand
Demand is the amount of goods and services that the market requires or requests to meet a specific need at a given price. The objective of demand analysis is to determine and measure which factors affect the market requirements for a good or service, as well as to determine the possibility of participation of the project’s product in satisfying that demand.
Analysis of the supply
It is known as supply to the amount of goods or services that a certain number of producers are willing to make available to the market at a given price. The objective of supply analysis is to determine or measure the quantities and conditions in which an economy can and wants to make a good or service available to the market.
Marketing is the activity that allows the producer to deliver a good or service to the consumer with the benefits of time and place, that is, to place the product in a suitable place and time, to give the consumer the satisfaction he expects with the purchase.
What is the benefit of a market price study?
A market price study helps the company to take the right path to run its business. Here are the main benefits:
- Knowing the competition.
- Find out who the target audience is.
- Knowing the opinion of the consumers.
- Understanding the variables.
- Discard ideas, products or projects that could lead to failure.
How to make a market price study?
First we must define why we want to carry out a market study, we will have to take into account all the possible risks that could lead to failure, then we must have a reliable source of information, this through surveys, interviews, reports, etc. Then we must design a road map or design for the achievement of the objective. Finally, it will be documented in a report that will serve as a guide to start the project.