When identifying the geographical boundaries of the market, it is not taken into account. Test The concept of the market

Defining the boundaries of the industry market

Determining the boundaries of an industry market begins, as a rule, with defining the boundaries of the product (commodity) market. The market can identify product (commodity), geographical and time boundaries.

Product boundaries industry market are determined through an analysis of the elasticity of revenue from sales of goods from changes in price by this product. Direct price elasticity (the elasticity coefficient has a positive value) means that as the price of a product increases, revenue increases (at least not decreases). This suggests that there is no substitute for such a product on the market, there are no alternative ways to satisfy the need, the market has clear boundaries in the form of a single product (good) capable of satisfying a specific need.

In the case of inverse price elasticity (when the elasticity coefficient is a negative value), as the price of a product increases, revenue decreases. This means that there is a substitute for this product, perhaps there is an alternative way to satisfy the need, and the market for this product does not have clear product boundaries.

Geographical boundaries industry market are determined by the boundaries of the territory within which the same trade rules and customs rules apply, the difference in transport costs is insignificant for the consumer and does not influence the decision to purchase a product. Also, within the geographical boundaries of one industry market, the same conditions of competition and homogeneous preferences regarding the properties (qualities) of the product apply.

Temporal boundaries industry market are determined by the period during which enterprises provide consumers with goods in a timely manner and in full, and can also manage demand for goods through a complex marketing activities. As a rule, the time boundaries coincide with the boundaries life cycle goods.

Functions of the trading industry in the economic system

The specificity of the trade industry is that it does not create new goods, does not change the physical form of existing goods, but provides services to bring goods from the manufacturer to the consumer, as a result of which added value is formed.

For the trading industry, the product boundaries of the market can be determined through the functions that the industry provides to customers (retail and wholesale trade and catering services). These services are best viewed through a set of functions performed by an industry in the economy.

The question of the functions of the trading industry is directly related to its essence as a system of commodity circulation. Functions mean the range of responsibilities, purpose, scope of activity.

In domestic economic literature until the 1990s. It was usually said that the main function of trade is “bringing consumer goods from the producer to the consumer in order to most fully satisfy the needs of the population and compensate for social necessary expenses for the production of goods." It was understood that there was a second function - ensuring a continuous change in the forms of value of goods, but no emphasis was placed on this function. However, these two functions of trade represent two sides of the same process - servicing the exchange of goods in two forms: natural-material and cost.

Both functions are carried out simultaneously: the first corresponds to the realization of the use value of the product, and the second to the realization of economic value (change of forms of value).

The process of circulation of goods cannot be considered unambiguously as consisting only of trade functions (purchase and sale of goods, studying demand, forming trade assortment, organization of trade relations). In the commodity circulation system, along with trade operations, non-trade operations are also carried out: transportation, storage, material processing of goods, etc. The need to perform these operations in the commodity circulation system is due to both the separation of production and consumption from trade, and the need to preserve consumer properties goods when delivering them to the final consumer.

The classification of the main functions of commodity circulation is presented in Fig. 2.1.

Rice. 2.1.

In addition to the trade and technological functions in Fig. 2.1 also presents organizational and economic functions. The content of trade and technological functions is clear in principle; these functions are discussed in detail in the relevant trade and technological disciplines. Therefore, we will dwell in more detail on organizational and economic functions.

The first of the organizational and economic functions, contact, consists in organizing market relations between producers and consumers of goods. The specialization of trade in performing the contact function provides significant savings in distribution costs due to a sharp reduction in the number of contacts themselves. Indeed, if the economy has T producers of goods who need to establish market links with n consumers, then the total number of these connections without resellers is Tχ and. When these connections are mediated by sales agents, their number is reduced to t+p .

The main general indicators characterizing the role of commodity circulation in performing the contact function are:

the volume of trade transactions concluded through trading enterprises;
the share of workers in the industry or its subsystem in total number employed in the economy.

The contact function of commodity circulation generates accounting and information a function, the essence of which is the collection, processing, accumulation and transmission of commercial information to other participants in the exchange. Mediation activities trading enterprises in the exchange of commercial information is due to their special position at the intersection of information flows between production and consumption, as well as their operational capabilities to capture commercial information at the moment of its birth when concluding trade transactions.

Experts note a noticeable intensification of the information function of trade, which occurred in developed countries in the 1980s. If previously this function was performed immediately after the goods entered the market, now recent years This activity also covers the period of product design, its inclusion in production program manufacturer, as well as strict quality control of goods. Consequently, from an ordinary operation serving the circulation of goods, the accounting and information function has turned into an important national economic one.

Essence credit and financial function is to provide loans when paying for commodity transactions by manufacturing and wholesale intermediary firms with retail businesses, and lastly - with their customers. The growing scale of lending in sectors of commodity circulation allows us to talk about the transformation of the commodity economy of developed countries into a commodity-credit economy. Almost all wholesale trade transactions are paid on credit, as well as retail sales durable goods. And with the introduction of credit cards, credit mediates an increasing share of the turnover of goods of daily demand. Russian buyers are actively using the opportunity to purchase goods on credit, but banks and trading enterprises are becoming more demanding regarding the security of loans and the credit histories of potential borrowers. According to statistics in 2009–2010. 12% consumer goods was sold on credit.

Payment for goods and services using bank cards usually based on purchasing relationships between trading enterprises and banks. Thus, in the total amount of payments to the USA, check payments account for 60%, payments using plastic cards – 30%, cash payments – 10%. In Russia, checks are rarely used; plastic cards have become firmly established in financial practice, but the habit of using them to pay for purchases is forming slowly. The reason is the conservatism of buyers and a low degree of trust due to frequent cases of unauthorized access by unauthorized persons to cash. The ratio of cash received from ATMs and goods and services paid for using bank cards during 2005–2011. remained at the level of 9: 1. In 2010, the amount of non-cash payments for goods and services throughout Russia amounted to 1141 billion rubles, while Moscow accounted for 45.3% of the market (516.8 billion rubles), St. St. Petersburg - 9.3% (106.1 billion rubles). In Europe, the ratio of receiving cash from ATMs to non-cash payments for goods and services is 4:6.

The trading industry at the macroeconomic level performs the functions listed above and creates certain economic effects. At the same time she plays important role in the economic system, which is manifested in the following:

trade through two industries that carry out the final stage of distribution material goods, retail and catering, completes the process of reproduction of labor products with the blocks “distribution” and “consumption” in accordance with the public and private (personal) needs of the subjects economic system;
the “trade” industry is the link between production and consumption and ensures the continuity of reproduction of the social product;
the normal functioning of commodity circulation sectors contributes to the stability of money circulation;
effective development of the trading industry is not only important social role in meeting the needs of the population, but is also one of the prerequisites for increasing people’s free time, which allows them to develop spiritually and physically;
trade contributes to the development of the national economy, as it forms gross value added, net production and net profit, which are components of the country's gross domestic product. In recent years in Russia, the contribution of the trade industry to total GDP has not fallen below 18%. For comparison, we can cite a similar indicator typical for developed countries - where the share of GDP created by trade is 25–27%.

The essence, functions and role of the trading industry in consumer market cannot be opposed, they are inextricably linked, but it is necessary to consider the role of trade in the economy from a broad perspective due to its active interaction with other industries and its important place in reproduction processes.

Industry Boundaries – a conditional concept, the content of which may vary depending on the chosen approach. In changing economic conditions, the boundaries of the industry also change: they expand (blur) or narrow. Such changes are especially noticeable in the following cases:

the emergence of substitute products, the identification of “hidden” or the emergence of new competing products;
changes in the structure of the industry (emergence (exit) of competitors, consumer groups, suppliers);
changes in the geographic boundaries of the industry. As a rule, if similar (comparable) competition conditions operate in certain territories (competitive forces are equally distributed), then these territories belong to the same industry market, since in such a situation there are no barriers separating these markets.

Trade in a developed socialist society / ed. F. D. Fesenko. M.: Economics, 1997. P. 12.
Komlev S. L. US domestic trade: organizational and structural changes. M.: Nauka, 1987. P. 11.
URL: retail.ru/news/57716/

Lecture topic:

The market, its main structures and determinants

Questions:

Market and industry: concept, boundaries, classifiers.

Market structures and their basic determinants.

The level of concentration and the factors that determine it. Indicators of industry concentration.

Market power and its indicators.

The company as a market subject. The problem of choosing a target by a company. Profit maximization hypothesis. Alternative goals of the company.

Literature

[ 6 , ch. 1;7, Ch.1,2,5;12 , Ch.1-3;14 , Chapter 7;15 , Chapter 1.

Topics of abstracts and reports

Institutional theories of the firm.

Literature for writing essays and reports

1. (13 , With. 344 – 351).

Questions for discussion

Consider different approaches to defining market boundaries, choose the approach you think is most appropriate, and argue in favor of it.

Compare the advantages and disadvantages of the main indicators of seller concentration in the market.

Is it enough for a firm to have a high level of market concentration to have monopoly power?

It is known that government regulators judge the level of monopoly power mainly by concentration indicators and do not use market power indicators. Why do you think?

Determine the criteria underlying the classification of firms and, in accordance with them, name the types of firms.

Questions for the exam for the course “Microeconomics”

(advanced level)" for undergraduates on this topic are similar to the questions in the lecture.

Question 1. Market and industry: concept, boundaries, classifiers.

Market - is a set of economic relations regarding the purchase and sale of goods at prices established on the basis of the interaction of supply and demand as a result of competition.

Market - basic concept of industry economics. It is in the market that firms interact. There are many definitions and criteria for assessing the market. The most general concept was given by J. Tirol, who proposed to consider the market“...a homogeneous product, or a group of differentiated products that are good substitutes (or complements) for at least one of the products in this group and have limited interaction with another economy.”

Industry market is a phenomenonanalyzedWith demand positions (According to theory industry organization).

One of the main issues of economics is the relationship between the market and the industry.

Industry yu is a set of enterprises that produce goods that are substitutes in production (produced using homogeneous resources and similar technologies).

Industry is being considered from a supply perspective goods on the market.

Differences between the industry market and the industry :

The market is united by the need being satisfied;

The industry is united by the nature of the assets used.

The concept of industry is broader than the concept of market . For example, the chemical industry as an industry may serve a number of markets in which there is demand for different types of products. In turn, the market and the sub-industry, united within a specific industry by the production of related goods, can sometimes be considered as related concepts. This simplification is all the more acceptable the more specialized the enterprises in the sub-industry

At the beginning of the twentieth century. formed basic approach to the analysis of the organization of industry markets: Harvard School and Chicago School (analysis from the point of view of price theory). First approach can be called systemic orbasicapproach ("structure – behavior – result”). Harvard paradigm was developed by Harvard University professors E. Mason and D. Bain in the 1930s-50s. At the center of this approach, as already noted, there are three main elements. In a simplified form, it looks like this: the structure of a certain market, which is understood as a separate industry or an enterprise (for example, an oligopoly). The structure determines the type of market behavior of the market agents involved in it (for example, price collusion of enterprises), which, in turn, determines the results of the functioning of the market and the enterprise (for example, a high level of profitability) (Fig. 1).

Second approach basedon the use of microeconomic models and pricing theory.(D. Stigler even expressed the point of view that the economics of industrial markets does not exist as a separate field of knowledge in economic theory, but simply coincides with the theory of negotiated prices (conventional price theory) in microeconomics).

Over the years, these approaches have developed, mutually complementing each other. (We follow the second approach)

Definition industry market boundaries related to the purpose of the study.

The boundary of an industry market allows us to determine the circle of firms producing goods for it. An industry is a collection of firms that produce products that fall within the boundaries of the industry market on the basis of similar resources and similar technologies. The extent to which the range of enterprises operating in a selected market is correctly defined is usually verified using indicators of specialization and coverage. If the values of these indicators are large enough, research into the structure of the industry market can contribute to the emergence of high-quality research results.

(For example, if it is necessary to assess the effectiveness of government policy in the field of energy. The entire electricity market should be simultaneously considered: coal, gas, oil production and nuclear energy production. If mergers of two coal mining companies are analyzed, then the coal industry in the narrow sense is considered words....) (L. - L.V. Roy, V.P. Tretyak. Analysis of industry markets. - Chapter 2. p. 27-31)

There are several types of market boundaries :

– product boundaries , reflecting the ability of goods to replace each other in consumption;

– time boundaries allowing for a comparative analysis of market development over time;

– local boundaries , limiting the markets in question within a given territory.

(The necessary breadth or narrowness of the boundaries in each specific case depends, firstly, on the characteristics of the product, and secondly, on the purposes of the analysis. Thus, for durable goods, the time boundaries of the market will be much wider and less defined than for goods of current consumption. For consumer goods, one market is characterized by a larger number of product names than for industrial and technical goods. Determining the local boundaries of the market depends on the actual intensity of competition between sellers in the national or global market and on the height of the barriers to entry into the regional market of “external” sellers.) (L-ra. - Vasilyeva + Roy)

Determining market boundaries is of great importance in the work of antimonopoly committees in many countries. The boundaries of the industry market include a homogeneous product and its substitutes until a sharp break in the chain is observed substitute goods. As soon as cross price elasticity becomes less than a certain value, we can talk about a break in the chain of commodity substitutes, and therefore about the market boundary. By setting different values of cross-price elasticity, you can get different scales of the industry market.

In the European Union countries there are other criteria for identifying a market:

1) indicator of changes in revenue when prices change , based on the principle of direct price elasticity. For example, the price of product A has increased, how has the revenue of producers of this product changed? If revenue has increased (or, accordingly, the additional profit of sellers is positive), the market is limited only by product A. If revenue has decreased (the additional profit of producers is negative, or non-positive), there is a close substitute, product B. Therefore, it is incorrect to talk about the market for product A, you need to look for product B and check the market for product A+B again. The dynamics of revenue and profit of manufacturing companies with a long-term increase in price indicates the boundaries of the market, is based on the principle of direct price elasticity; demand in such a market is quite inelastic. In this case, an increase in sellers' prices leads to an increasetheir revenue;

2) To correlation of commodity prices over time . A positive correlation between the movement of prices of goods over a long period of time (5–10 years) indicates that goods are stable substitutes, i.e. constitute one market. This criterion is based on the concept of cross price elasticity. If goods A and B serve as close substitutes, an increase in the price of goods A leads to an increase in the demand for goods B and, other things being equal, to an increase in the price of goods B;

3) G geographical limitation of the market . As a criterion for belonging to the same geographic market, the same conditions of competition are identified, such as the interconnectedness of demand, the presence of customs barriers, national (local) preferences, differences in prices, transport costs, etc.

Sometimes, having identified the boundaries of a market, it is necessary to determine the firms producing goods in this market.How accurately the range of enterprises operating in a selected market is determined is usually checked using indicators of specialization and coverage. If the values of these indicators are large enough, research into the structure of the industry market can contribute to the emergence of high-quality research results.

Let us consider the production of product X by enterprises that we have assigned to the corresponding industry (sub-industry) X. In this case:

– specialization indicator– the share of sales volume of product X to the total sales volume of enterprises classified by us as industry X;

– coverage indicator– the share of sales volume of product X by enterprises classified by us as industry X to the total sales volume of product X

Classification of industry markets

Due to the presence of different types of boundaries of industry markets, the set of markets can be classified according to various criteria.

Classification characteristics :

- types of activities its participants - (production, non-production, financial, intellectual).

- transaction objects - (commodity, financial, real estate; factors of production);

- operating conditions - (opene - free entry to the market for new companies ; closed- there are barriers to entry into the market ; spontaneous;organized,-For example, stock trading, auctions; stable; unstable; seller; buyer);

- degree of SD localization Christmas trees (territory, time); For example, according to the degree of localization of trade transactions, industry markets are:

Global,

Regional,

Local,

Local.

- types of relationships(vertical, horizontal);

- nature of interaction(competitive, non-competitive)

- stages of market maturity(Pioneering, growing, mature, or developed, fading, or shrinking).

The types of markets in an economic organization can be represented in the form of a diagram (see Fig. 1).

Fig.1. Main features of classification of industry markets

The classification of markets is of great importance in identifying types of market structures, organizing production activities by firms, and carrying out regulatory activities by government agencies.

Economic borders are conventional boundaries between “country-systems” or between zones of influence of transnational business entities.

Geoeconomic dictionary-reference book. - Odessa: IPREEI NANU. V. A. Dergachev. 2004.

See what “Economic boundaries” are in other dictionaries:

Economic schools- systems of views and theoretical research of representatives of various directions of economic thought, which have their founders and followers who substantiate their own concept and try to explain the basic laws of economic... ... Economy. Dictionary of social studies

ECONOMIC REGIONS OF RUSSIA AND USSR- certain territories, within which specialized farming is formed and developed, which is part of the people. x va of the entire country and interconnected with its other parts by the constant exchange of goods produced in them, etc. economic. relationships... ... Soviet historical encyclopedia

Economic essays- Check the information. It is necessary to check the accuracy of the facts and reliability of the information presented in this article. There should be an explanation on the talk page. Economic essays book by Russian ... Wikipedia

Federal Agency for the Development of the State Border of the Russian Federation- (Rosgranitsa) ... Wikipedia

- – there are natural, political, state, economic and other boundaries that have contact, barrier and filtering functions... Geoeconomic dictionary-reference book

Socio-economic relations in the Hittite state- Sources indicate a significant development of productive forces in the country of the Hittites by the 16th century. BC e. By that time, bronze tools had already decisively predominated. Although pastoralism may have continued to dominate economic life… … World history. Encyclopedia

Who lays claim to the North Pole? History of development- In the 1920s, a number of coastal states (USSR, Norway, Denmark, which owns Greenland, the USA and Canada) put forward the concept of “polar sectors”, according to which all lands and islands located within the polar sector... ... Encyclopedia of Newsmakers

Socio-economic system- is a phenomenon of the life of society, which determines the “coordinate system” in which it carries out its life activities. Contents 1 Definition of a socio-economic system 1.1 ... Wikipedia

Belgian-Luxembourg Economic Union- (Dutch. Belgisch Luxemburgse Economische Unie, French Union économique belgo luxembourgeoise, Luxemb. Belsch Lëtzebuerger Wirtschaftsunion, BLES) economic and financial union between Belgium and Luxembourg, two countries, ... ... Wikipedia

Kondratieff cycles- Economic cycles Name of the cycle Characteristic period Kitchin cycle 3 4 years Juglar cycle 7 11 years Kuznets cycle 15 25 years Kondratiev cycle 45 60 years Kondratiev cycles (K cycles or K waves) periodic cycles of the modern world economy... ... Wikipedia

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The evolution of the theory of credit and its use in modern economics, Oleg Lavrushin. Contains an analysis of a wide range of problems in the theory of credit and the most complex issues of its use in modern economy. Based on a synthesis of numerous literary sources,...

Product, geographical, time boundaries of the market. Features of determining the boundaries of the product market.

The industry product market is characterized by geographical, product and time boundaries

Definition product boundaries market is the identification of substitute goods (their consumer properties) forming a single product market. The basis for this is the opinion of customers.

Antimonopoly committees around the world in practice mainly use cross elasticity. A break in the chain of substitute goods is fixed if the coefficient becomes less than a certain specified value.

A zero coefficient indicates the indispensability of goods, and a negative coefficient indicates the complementarity of goods (for example, an increase in the price of gasoline should theoretically reduce the demand for cars).

Geographical boundaries commodity market are caused by economic, technological, administrative barriers. They limit the ability of buyers to purchase goods in a certain territory.

The market territory is determined based on the principle of recognition by buyers of equal availability of goods. When determining geographical boundaries, the following factors are taken into account:

availability vehicles to move the buyer to the seller and low transport costs;

the significance of additional costs for transporting goods from the seller to the buyer (the difference in profitability, cost and consumer qualities of goods by 5-10%);

preservation of the level of quality and consumer properties of the product during its transportation;

the absence of administrative restrictions on the import or export of goods in the territory;

comparability of price levels for relevant goods within the territory of the proposed market.

Temporal boundaries market characterize the importance of time in the process of selling goods. The more a product loses its quality over time and the greater the warehouse costs for its storage, the more intense the process of competition in the product market will be, and vice versa.

Geographical and product boundaries represent the market in a static state. To fully assess the boundaries and the stability of the position of individual economic entities on it, it is also necessary to analyze the market situation in dynamics, i.e. answer to the question: “What will be the reaction of the buyer if on the commodity market the seller of goods raises the price for them by a small but significant amount?”

The price change should be relatively long lasting. A small increase in price will distinguish only close substitutes from the entire group of replaced products. If a larger price increase is taken into account, then more distant substitutes will be mistakenly included in the same market.

If, when the price increased, the buyer was unable to switch to substitute goods (substitutes) and purchase goods at the same price in another territory, then the smallest market in terms of product and geographical boundaries is precisely defined.

In practice, product and geographic boundaries are determined based on the buyer’s conditional willingness to pay at the moment (and not in response to the actions of the dominant) a price that exceeds the current one by 5%. All interchangeable products with a price higher than the original one by no more than 5% are included in the product market.

The product boundaries of the market are determined as a result of a continuous or selective survey of buyers and are supported by data from merchandising examination.

Market concept. Market boundaries (product, territorial, time) and their assessment

Market - totality economic conditions, in which buyers and sellers interact to carry out mutually beneficial trade transactions.

The market is not only a collection of existing and potential consumers, but also a complex of interrelated elements - product supply, price and demand .

The most important condition for applying a commercial approach in modern conditions- existence of the market. If there is no free market of buyers and sellers in a society, then no one is interested in studying market demand. If buyers do not yet have a choice when purchasing goods, if quality and price are dictated exclusively by monopolistic manufacturers, then their desires and needs will not be taken into account by anyone. A market exists when people meet directly or through intermediaries to sell or buy goods and services. In a free market, the process of exchange, buying and selling determines who should produce what goods, as well as what and how to buy.

Approaching the concept of the market in more detail, it is possible to note that the market consists of a number of mandatory elements (each of these elements characterizes one side of the market, together they describe its entire complex):

ь buyer (people, groups, organizations) with their own needs;

b availability of sellers willing and able to sell;

ь purchasing power (money);

ь desires (buy);

ь corresponding opportunities (buy).

The following follows from this:

1) The importance of understanding the needs and requirements of the buyer, as this leads directly to the act of purchase;
2) Sellers must be able to produce goods needed by buyers and be able to sell them;
3) The market can expand and contract depending on purchasing power.
4) New markets can be created or existing ones expanded by increasing the opportunity to buy through wider distribution.
5) Markets can be increased by stimulating the desire to buy through promotion and advertising.

Classification characteristics of the market:

a) objects of transactions - commodity, legal factors, real estate, financial;
b) operating conditions - open closed, spontaneous organized, stable unstable, seller buyer;
c) the degree of localization of transactions - by time, territory;
d) types of relationships - vertical horizontal;
e) the nature of interaction between firms - competitive non-competitive

Understanding the market as a sphere of circulation predetermines the need to set its external parameters. In regulatory legal acts, such parameters are determined through geographical and product boundaries.

Market product boundaries are understood as a group (set) of interchangeable goods. Determining the product boundaries of a market is a procedure for determining a product (its consumer properties), substitute products and forming a product group (a group of products whose markets are regarded as one product market). The basis for determining product boundaries is the opinion of buyers about the interchangeability of products.

Geographical (territorial) boundaries of the market - This is the territory in which buyers can purchase this product and do not have such an opportunity outside it. Geographic boundaries are determined by economic, technological and administrative barriers that limit the ability of some buyers to purchase a given product in the territory in question.

When determining geographical boundaries, many factors are taken into account, in particular:

1) the possibility of moving goods between territories;
2) availability of vehicles to move the buyer to the seller;
3) the absence of administrative restrictions on the import or export of goods in the given territory;
4) a comparable level of prices for relevant goods within the boundaries of this market.

According to the criterion of geographical boundaries, the market can be divided: local, regional, interregional, all-Russian.

Market boundaries

I. grocery - substitutability in consumption

II. temporary - duration of consumption period, presence of entry barriers

III. local - intense competition, presence of barriers to entry

The market structure is characterized by quantitative and qualitative indicators. Quantitative indicators are:

1) the number of sellers operating in this market;
2) shares occupied by sellers in the market;
3) indicators of market concentration.

Quality indicators include:

1) the presence or absence of barriers to entry into the market for potential competitors, the degree of their surmountability. In this case, potential competitors can be considered business entities that:
- a) have the material and technical base, personnel and technologies for the production of this product, but for various reasons do not realize these capabilities;
- b) produce this product, but do not sell it on the territory of this product market;
2) openness of the market for interregional and international trade.

Comparison and analysis of quantitative and qualitative indicators characterizing the structure of the market makes it possible to determine its type. Thus, market types are distinguished depending on:

a) on concentration (highly concentrated, moderately concentrated and low concentrated markets are distinguished);
b) on the development or underdevelopment of the condition competitive environment. Determining the boundaries, structure and type of market is necessary for the relevant government agency to develop a system of measures aimed at regulating it in order to maintain a competitive environment and create conditions for satisfying the demand and supply of entities.

Time boundaries are also highlighted. The main time limit is the calendar year. The planning process for the next year takes place from September to December. Planning and reporting, including fiscal, are carried out synchronously - according to the calendar year. Changes in the current plan are reflected in additions to the current plan, control actions are carried out according to deviations. The year is divided into quarters, quarters into months. For large assembly lines and large assembly plants, weekly, daily and hourly schedules are prepared. It is important to remember that the bulk of the work on drawing up schedules for production departments was previously developed manually and, if you imagine that the plan changed significantly during the year (quarter, month), then changing schedules was not an easy job.

IN managerial work planning occupies one of the main places. The greater the uncertainty in demand, both internal and external, the greater the role of the planning process. Good organization The planning process may well be considered the key to the success of the enterprise. One of the most important criteria for good planning is the correct determination of time boundaries. By establishing time boundaries, management brings strict order to the planning process for all departments. At the same time, by changing time boundaries, management manages the planning process as required by the market. Learning to manage the planning process and correctly using time boundaries in planning means learning to effectively manage an enterprise and its activities.

Market assessment, determination of the volume and share occupied by individual enterprises is main task market research.

Practice marketing research shows that this information is currently of great interest to the company.

In most cases, market assessment is carried out according to the following plan:

1. Analysis of supply and demand and its development trends:
- - assessment of the magnitude and structure of current actual demand / supply (total and by components)
- - prospective assessment of supply and demand in the market (general trends / segmentation)
2. Analysis of market structure, segmentation, analysis of sales forms and methods.
3. Study of the level and conditions of competition in the selected market.
- assessment of the competitive environment (circle of main competitors, strategic plans of competitors, tactics and strategies of activity).
- SWOT analysis; STEP analysis; business environment profiling.

Knowledge of these indicators is necessary both to expand market share specific company, and to penetrate the market of a new company or brand.