A presentation on market demand analysis is an insightful way to understand how businesses evaluate consumer demand for their products or services. This presentation covers the basics of market demand analysis, including the methods used to collect and analyze data, such as surveys and focus groups. It also explores the factors that influence market demand, such as consumer preferences, income levels, and market trends. The presentation provides insights into how businesses can use market demand analysis to inform their pricing, production, and marketing strategies.
2. What is Demand
Demand refers the effective demand, the amount of buyers are willing to
purchase at a given price and over a given period of time.
For Ex: A fall in price of cars will lead to an increase in
the demand for petrol.
3. Types of Demand:-
1. Demand for Consumer's Goods & Producers Goods
2. Demand for Perishable Goods & Durable Goods
3. Autonomous Demand & Derived Demand.
4. Industry Demand & Firm/Company Demand
5. Short run Demand & Long run Demand
6. Joint Demand & Composite Demand
7. Price Demand, Income Demand & Cross Demand
4. 1. Demand for Consumer's Goods &
Producer's Goods
Goods & Services demand by consumers for the direct satisfaction of their
wants, consumption purpose - Consumer Goods
Ex: clothes, house, services of lawyer, doctor, teacher etc..
Goods which are demanded by producers in the process of production –
Producer's Goods (Capital Goods)
Ex: Tools & Equipements, Raw Materials, Factory Building etc..
5. 2. Demand for Perishable Goods &
Durable Goods
Perishable Goods have no durability, that is, they can't be stored for longer
time
Ex: Eggs, Milk, Fish, Vegetables etc..
Durable Goods last long, where as perishable goods perish soon. Durable
goods are storable for longer period of time.
Ex: House, Furniture, Car, Clothes etc..
6. 3. Autonomous Demand & Derived
Demand.
Spontaneous demand for goods, which is based on an urge to satisfy
some wants directly – Autonomous Demand
Demand for consumer goods is autonomous. It is final, it is direct demand
When the demand for a product on the demand for some other
commodities is called derived demand.
7. 4. Industry Demand & Firm/Company
Demand
A firm is a business unit : Industry is the group of closely competitive firms.
Industry demand refers to the total demand for the commodity produced
by a particular industry.
8. 5. Short run Demand & Long run
Demand
Short run demand refers to existing demand with its immediate reaction to
price changes, income fluctuation, etc..
Long run demand is that which ultimately exist as a result of changes in
pricing, promotion or product, improvement, after enough time is allowed
to let the market adjust itself to the new situation.
9. 6. Joint Demand & Composite
Demand
When two goods are demanded in conjunction with one another at the
same time to satisfy a single want, they are said to be joint or
complimentary demand.
Ex: Pen, Ink, cars, petrol, bread, sugar and milk etc..
A commodity is said to be in composite demand, when it is wanted for
several different uses.
Ex: Milk (for cheese, yoghurts, cream)
10. 7. Price Demand, Income Demand &
Cross Demand
Price Demand : Various Quantities of a product purchased by the
consumer at different prices. (this function is based on single price)
Income Demand : Various Quantities of a commodity demanded by the
consumer at alternative levels of his changing money income.
Cross Demand : Various Quantities of a commodity (say x) purchased by
the consumer in relation to change in the price of a related commodity
(say y, which may be either a substitute or a complementry product)