Prospecting

economic-dictionary

Prospecting is an economic tool used by organizations in order to evaluate possible future alternatives that may affect them. It serves as the basis for decision making and strategy creation.

Carrying out a prospecting assumes quantitative and qualitative variables, in order to pose future realities that a company or an institution can face in a given period of time.

Thus, its main objective is the contemplation of future possibilities. An economic analyst must estimate the different alternatives that may occur in terms of profitability, future profit levels or changes in consumer behavior, for example.

In this sense, this concept is often related to game theory, where the behavior of economic agents is studied mathematically in relation to their actions given a certain level of risk.

Companies or organizations of all kinds dedicate part of their resources to analyzing the market in which they operate and understanding its behavior.

In this way, they have the ability to anticipate potential problems or take advantage of situations of opportunity.

Characteristic features of prospecting

Prospective tasks have their own analysis and anticipation tools. For this reason, each field is frequently susceptible to the use of its own models to ascertain future effects.

That said, all economic prospecting must pursue future profitability and, therefore, the achievement of the highest possible profit.

An important point will also be the study of the existing competition ratio and, therefore, the greater or lesser difficulty of access to it.

At the same time, it must prevent possible problems for a country or a business, so that it is possible for them to anticipate and propose strategies to counteract their effects.

To do this, a prospect must meet the following aspects:

  • The key prospect is identifying opportunities to take advantage of or negative points to avoid.
  • It must be based on data from analysis, which justifies the actions to be taken into account. They often come from client portfolios, the economic situation or market research.
  • Often its realization corresponds to specific professionals. In other words, there are departments and professionals specialized in prospecting for economic and business realities.
  • They must serve as support and justification for market strategies to be implemented.

Prospecting applications in the economic environment

In the field of economics, there are multiple applications of prospecting due to the fact that to a large extent this discipline is based on the anticipation of economic cycles and future events.

For this reason, it is common to carry out prospective exercises in both microeconomic and macroeconomic areas.

Thus arise studies of economic anticipation regarding the economic growth of a territory or about the entry of a company in a particular sector.

A prominent example of this last point is market or commercial prospecting, through which it is possible to carry out prospects or future estimates of sales of a product in a specific area or season.

Prospecting in market research environments and the discovery of potential clients or niches is also often used.

There are recognized study models, among which, for example, that of Porter's forces stands out.

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