Commercial Function and Market Analysis: A Comprehensive Guide
The Commercial Function
Meeting Consumer Needs and Demands
The commercial function of a company is responsible for product supply in the market. Its basic mission is to meet the needs and demands of consumers. This function carries a significant responsibility, as its effectiveness impacts not only profits and company survival but also the fulfillment of social needs.
Commercial Effectiveness
- Sales Volume: The amount a company sells in a given period, usually expressed in monetary value and quantity.
- Market Share: The percentage of the total market that a company holds for a particular product or set of products. It’s a relative measure of market leadership, with the leader possessing the largest share.
Business Marketing
Building Relationships and Loyalty
Business marketing encompasses principles and practices that promote and facilitate interactions between companies and consumers. It focuses on studying and developing trade relations in current markets. The goal is not solely to increase sales but also to foster customer loyalty.
The Role of Commercial Direction
In most companies, the responsibility for marketing activities falls under the commercial direction, which is typically one of the most important departments. This department often includes a market analysis team.
Market Analysis and Diagnosis
To formulate a concrete offering, the company must conduct an external analysis to identify market opportunities. This involves considering consumer needs, the supply of similar products, and the competitive landscape. This external analysis is linked to an internal analysis to determine if the company can consistently deliver the offering.
Commercial Planning
Setting Objectives and Strategies
Commercial planning involves developing a plan to achieve specific business objectives and designing appropriate strategies. These objectives can vary in nature and importance, each requiring a different commercial strategy.
Marketing Mix
Commercial planning addresses two types of variables: strategic and tactical. Strategic variables have long-term implications and include the product offered and the distribution system. Tactical variables, such as product promotion and pricing policy, can be modified in the short term.
Study of Markets and Demand
Understanding the Market
The market is where supply and demand converge, involving suppliers and demanders. Demand represents the desires and needs that consumers are willing and able to satisfy based on their purchasing power. Understanding demand is crucial for companies competing in the market.
Target Market
A company’s target market consists of the specific group of consumers to whom it directs its offerings.
Different Types of Markets
According to the Number of Suppliers and Customers:
- Monopoly: A single supplier facing many buyers.
- Oligopoly: Few suppliers facing many buyers.
- Perfect Competition: Many buyers and sellers with homogeneous products.
- Monopolistic Competition: A large number of suppliers and customers with differentiated products.
According to the Nature of the Product:
- Consumer Markets: Characterized by a wide variety of products and strong competition.
- Industrial Markets: Products are marketed more directly through negotiations and longer-term relationships.
- Service Markets: Diverse and complex, employing various commercial techniques and tools.
By Type of Buyer:
- End Consumer Markets: Buyers seek products for personal or individual use.
- Institutional Markets: Buyers act as intermediaries, offering acquired products to others or using them as inputs in their production processes.
According to Geographical Area:
- Local Market: Limited to the immediate surroundings.
Depending on their Materiality:
- Real Market: The existing demand for a specific product at a particular time.
- Potential Market: The maximum amount of a product or service that could be sold within a specific period, market, and conditions.
Consumer Behavior
Understanding Decision-Making Processes
Consumer behavior refers to the decision-making processes and actions consumers take when selecting and using goods or services.
Types of Consumers:
- End-Users: Individuals who choose and consume the product themselves.
- Prescribers: Those who recommend the product to other consumers.
- Opinion Leaders: Individuals whose consumption of a product influences others to imitate them.
Market Segmentation
Identifying Homogenous Groups
Market segmentation involves classifying consumers into distinct groups based on their purchasing or consumption behavior. This allows companies to identify homogenous segments within the market.
Market Research Techniques
Qualitative and Quantitative Approaches
- Qualitative Market Research: Gathers information on consumer attitudes and behavior.
- Quantitative Market Research: Provides numerical data. Surveys, conducted through personal interviews or mail, can obtain commercial information by collecting responses from individuals. The advantage is the direct collection of evidence from the source.
Commercial Research
Analyzing Business Information
commercial research is called that is the set of activities designed to meet the company two very important aspects, the effectiveness of their sales and performances conducted k k puedn affect its competitors.