Market price research involves the systematic and objective collection, analysis, and information assessment on specific aspects of marketing issues to assist management in making important decisions. Market price research is the improvement in decision making.
A market price study should serve to clarify the idea of the number of consumers that will have to acquire the good or service to sell, within a defined space, during a medium-term period and means 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, guiding the production of the business. Finally, the market price study will inform us about the appropriate price to place our goods or services and compete in the market, or to impose a new price for some justified reason.
Considerations during a Market Price Study
Demand is the number of goods and services the market requires or requests to meet a specific need at a given price. The objective of demand analysis is to determine and measure what factors affect the market requirements for a good or service, as well as to determine the possibility of participation of the project’s product to satisfy what consumers demand.
Offer is the number of goods or services that a certain number of producers are willing to make available to the market at a given price. The Offer Analysis’ target 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 enables the producer to deliver a good or service to the consumer with the benefits of time and place, i.e., to place the product in a suitable place and time to satisfy the consumer’s purchase expectations.
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?
We must mainly define the purpose of carrying out a market study, considering all possible risks that could lead to failure, then having a reliable information source. This is obtained 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.