Demand Analysis Applications

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  • Demand Analysis Applications

    1. 1. DEMAND ANALYSIS--- APPLICATIONS
    2. 2. DEMAND ANALYSIS <ul><li>OVERVIEW </li></ul><ul><li>Demand Relationships </li></ul><ul><li>Demand Elasticities </li></ul><ul><li>Income Elasticities </li></ul><ul><li>Cross Elasticities of Demand </li></ul> 1999 South-Western College Publishing
    3. 3. MANAGERIAL USES DEMAND ANALYSIS FORECASTING DEMAND MANIPULATING DEMAND Serves Two Major Purposes Ancillary Functions 1. Appraisal of performance of a salesman 2. Fixing sales quota 3. Company’s competitive position DEMAND ELASTICITY
    4. 4. DEMAND MANIPULATION … Private Airlines Potential Effective Demand Growth in Demand DESIRE WILLINGNESS ABILITY Marketing Strategy Created Loyalty Programmes On Line Bookings Other Frills
    5. 5. FEASIBILITY STUDIES Business Prospects Payback Period Revenue Generation Sales/Expansion/ Diversification Sales volume Demand Sales volume Demand DEMAND ANALYSIS
    6. 6. SALES MANAGEMENT Fixation of sales targets Assigning sales territories Salesman’s compen-sation Deciding on distribution channel DEMAND ANALYSIS
    7. 7. WAREHOUSE MANAGEMENT Location of warehouse Size of warehouse Warehouse economics DEMAND ANALYSIS
    8. 8. INVENTORY MANAGEMENT CONSUMPTION PATTERN SUPPLY & DEMAND LOCATION INVENTORIES DEMAND ANALYSIS SIZE OF INVENTORIES
    9. 9. INDIVIDUAL DEMAND AND INDUSTRY DEMAND INDIVIDUAL DEMAND DEPENDS UPON <ul><li>THE INCOME OF THE INDIVIDUAL </li></ul><ul><li>THE PRICE OF THE COMMODITY </li></ul><ul><li>THE PRICE OF THE SUBSTITUTE </li></ul><ul><li>THE TASTES AND PREFERENCE OF THE CONSUMER </li></ul><ul><li>SOCIAL CONVENTIONS </li></ul>
    10. 10. PROMOTION STRATEGY PRICE EFFECT ON DEMAND INCOME EFFECT ON DEMAND SUBSTITUTION EFFECT ON DEMAND Advertising creates an image of the Brand … which will sell Company’s focus on explaining the advantages of the product more persuasively than the competitors Positioning products as high end products…. Maruti esteem as the Big car Value for money…. High prices Discounts, Add-ons, Better service

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