25-07-2012, 04:14 PM
Market and Demand Analysis
29970658-Market-and-Demand-Analysis-SVPITM.ppt (Size: 468 KB / Downloads: 40)
WHY MARKET & DEMAND ANALYSIS
Companies use market demand analysis to understand how much consumer demand exists for a product or service. This analysis helps management determine if they can successfully enter a market and generate enough profits to advance their business operations. While several methods of demand analysis may be used, they usually contain a review of the basic components of an economic market .
Steps of the market & demand analysis
Define the objectives of the study
Conduct a situational analysis of market
Determine sources of secondary data and collect available data
Market survey
Process and analyze both secondary and primary data
Characterize the present market
Forecast future market demand
Market planning
Define the objectives of the study
The initial step in the market component is to set down in writing a preliminary statement of objectives in as much detail as possible. Obviously, the overall objective of the market analysis is to measure and forecast the market to determine the project will produce the right product at right time and at the right place. A good procedure is to structure the objectives in question form. When setting objectives, always keep in mind how the information will be used when it is obtained.
Forecast future market demand
The current market demand for the product, the past market demand growth pattern, and other market characteristics influence the choice of an appropriate forecasting technique. The budget available, the time required to develop the forecast, and the desired accuracy are other factors that influences the selection of a forecasting technique.
Market Planning
At this point in the market analysis, the demand forecast for the project has been developed. This demand forecast is an estimate of the demand expected for the product, given existing economic conditions, competitors, and the level of marketing effort. A marketing plan usually has the following components:-
Current marketing situation
Opportunity and issue analysis
Objectives
Marketing strategy
Action program me