Conjuncture - what is it? Change in the market
When one person comes to mind a goodidea, and he begins to deal with it successfully, soon he will have followers who offer analogues. Together, all these entrepreneurs influence the situation that develops in the market.
What is called a conjuncture?
- This is the name of the ratio that is formed between the supply and demand of both individual goods and their groups by their mass (in quantitative or monetary terms) from the total number of products.
- Specific economic situations that develop on the market in a certain period of time. It reflects the current supply-demand ratio.
- Set of conditions that determine the market situation.
- The state of the economy at a given time, which is determined through various targets.
- The result of interaction of various factors (natural, social, managerial, technical), the influence of which determines the position of the firm in the market.
The analysis of the conjuncture of each individual subjecttaking into account a number of features. For example, it is mandatory for the markets to take into account mutual influence and interaction with other structures of this type (or located on the territory of other countries). It is necessary to understand that each subject has a close connection with the general economic situation that exists in a single country or even a whole region.
What is necessary in the study of this phenomenon?
- Demand for the product.
- Market share of various enterprises.
- The price.
- Indicators of material production, which make it clear about the number of products offered on the market, its capacity and level of saturation.
The conjuncture of the enterprise is determined by a combination of conditions, thanks to which the market situation is formed at a given time. Therefore, based on the state of things, it can be of two types:
- High conjuncture (favorable). Its feature is a balanced market, as well as a growing or stable (at least) sales volume. Also, prices are in a state of equilibrium.
- Low conjuncture (unfavorable). Its feature is a market with characteristic signs of imbalance, which lacks or reduces demand. This is accompanied by significant price fluctuations, a sales crisis, and a shortage of goods.
Clear boundary between the imposed definitions is not provided. Therefore, as a supplement, they can speak about a lively, developing, stable, stagnant, regressing markets.
What are the main indicators of the market situation?
Due to them, a surface analysis can be carried out:
- Proportion of supply and demand for goods (service).
- The trend of market development.
- Level of variability (or stability) of the market.
- Degree of business activity.
- The scale of market transactions.
- The scope and strength of competition.
- The impact on the market situation of a particular phase of the seasonal or economic cycle.
- Level of commercial risk.
If you need to investigate the situation, a whole series of other parameters are used more deeply, the choice of which depends on the purpose. We will return to them.
Subject, subject and tasks in the study of market conditions
- Subject. It is understood as the study of mass processes and phenomena, through which a specific market situation is determined, which can be quantified and quantified.
- Subject. Various commercial structures act in their capacity (in this case they say that there is a marketing conjuncture), public organizations, state bodies and scientific institutions.
- Collect and process business information.
- Characterize the scale of the market.
- Identify development trends.
- Evaluate and analyze the basic proportions of the market.
- Analyze the variability, seasonality and cyclical development.
- Assess regional differences.
- Monitor business activity.
- Assess commercial risks.
- Monitor the intensity of competition and monopolize the market.
Their use depends on what the research objectives are. In general, there are and are used such indicators:
Offers of services and goods:
- Volume, structure and dynamics of production.
- Potential and elasticity of supply.
Buyer demand for services and goods:
- Volume, dynamics and degree of satisfaction of requests.
- Consumer potential and market capacity.
- Elasticity of demand.
- Supply-demand ratio.
- Structure of turnover.
- The division of the market between the manufacturer and wholesale and retail sellers.
- Distribution by forms of ownership of product sellers.
- The ratio between the market of means of production and consumer goods.
- Regional structure of the market.
- Distribution of buyers based on their consumer characteristics (age, income level and so on).
Prospects for the development of the market under study:
- Growth rates and growth in sales, inventories, profits, investments, prices.
- Trend parameters.
Vibrations, stability and cyclicality of the market:
- The coefficient of variation in the volume of sales, prices, commodity stocks in a certain time interval and in some territory.
- Parameters of cyclicity and seasonality models for the functioning of subjects and the environment for their interaction.
Regional market development and its condition:
- Variation of the supply-demand relationship is dependent on territorial features.
- Regional level of requests per person.
- Composition, fullness and dynamics of the portfolio of orders.
- The number, size and frequency (and its changes) of transactions.
- Load of production and trading capacity.
- Rationality of investments.
- The risk of making marketing decisions and the occurrence of market fluctuations.
Level of competition and monopolization:
- The number of firms in the market for a certain product. They also take into account their form of ownership, organization and specialization.
- Distribution of firms by their volume of production, sales and sales.
- The level of privatization (the number of such enterprises, their share in the volume of the market, the organizational form).
- Market segment (grouping of companies by their size or share in total sales).
Here such factors of a conjuncture exist. But economics is constantly evolving, so it's not a fact that in a few years this list will be incomplete.