MARKET AND DEMAND
Presented by :
Presented to :
Prof. Amarpreet Kaur
MARKET & DEMAND ANALYSIS
An integrated approach to generate power by critical analysis
of the market logistically.
Gives answer to two important ques.—
1. What should be the total demand for the product/service.
2. What share of the market would the proposed prject enjoy.
1 + 2 = Profitability of the project.
STEPS IN MARKET & DEMAND
Collection of market
Conducting a market
Characterisation of the
A. SPECIFICATION OF OBJECTIVES
Objectives give answer to following questions:
1. Who are the consumer?
2. How many consumers are there?
3. What do they want?
4. Why do they want it?
5. When do they want it?
6. How do they want it?
7. Where do they want it?
8. What quality is desirable?
9. How much can they spend?
10. What price is acceptable?
B. COLLECTION OF MARKET INFORMATION
-- information collected first hand.
-- questionnaires, surveys , interviews,etc.
-- information already been collected .
-- Census of India , India Year Book , Planning commision reports
, Economic Survey , Industrial potential surveys , etc.
C. CONDUCT OF MARKET SURVEY
Market survey is used when secondary data is not available or not fully
Analyse and interpret the information
Scruitanise the gathered information
Obtaing infromation from respondents
Recruit and train field reserachers
Sampling scheme and size
Defining target population
D. CHARACTERISTICS OF MARKET
This step characterises the market on the basis of information gathered.
1. Demand for the products/services
2. Market Segments
4. Methods of distribution and sales promotion
7. Government Policy
E. DEMAND FORECASTING
It refers to the amount of demand that the company can expect as its share of the total market demand.
Various methods of forecasting are classified as following:
A. FORECAST BASED ON TIME DURATION
Short term forecasts
Medium term forecasts
Long Term Forecasts
B. QUALTATIVE METHODS
Jury of executive Opinion Method
Poll of Sales Force Opinion Method
Survey of Consumers Buying Plans Method
E. DEMAND FORECASTING
C. QUANTITATIVE METHODS
Trend Projection Method
Exponential Smoothing Method
D. CAUSAL METHODS
Chain Ratio Method
Consumption Level Method
(a) Income elasticity of demand
(b) Price elasticity of demand
(c) End Use Method
(d) Leading Indicator Method
F. MARKET PLANNING
A good marketing plan is required in order to make a success of the venture one is thinking of starting.
Conceptually the marketing planning process involves the follwing:
(a) Defining the Business
(b) Analysing the Current Market
(i) Market Analysis
(ii) SWOT Analysis
(d) Marketing Strategy
Target market Segment
Sales force , Sales promotion , And Advertising
(f) Implementation and Control