Demand analysis is a marketing study that assesses customer willingness to buy products, determining pricing and advertising strategies. The law of demand indicates an inverse relationship between price and quantity demanded, while exceptions exist where demand increases as price rises. Market demand is the aggregate of individual demands, and goods can be categorized as substitutes or complements based on their relationship to each other.

1. DEMAND ANALYSIS
PRESENTED BY ÷
SIDDHARTH SUNDRIYAL
PIBM
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2. WHAT IS DEMAND ANALYSIS
Demand analysis is a marketing study used to determine what type of customers are willing to buy
a particular product and how many units they are likely to buy and at what price range. This
information is then used to plan advertising strategies, determine selling cost and make product
modifications.
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3. LAW OF DEMAND
 Law of demand say that, ceteris paribus, there is an inverse relationship between price and
quantity demanded.
 Demand curve is downward sloping line relating
price to quantity demanded.
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4. EXCEPTION OF LAW OF DEAMND
 Law of demand is a universal phenomenon very rarely it is so observed that with a
fall in price, demand also falls & a increase in price demand increases.
 The demand curve in such cases is upward sloping.
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P1
P2
Q1 Q2
D
D
O
Price
Qty. Demanded
{Exceptional Demand Curve}

5. EXPANSION OR CONTRACTION OF DEMAND
VS
INCREASE OR DECREASE IN DEMAND
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Price of
cigarettes
12 20
RS 4
RS 2
C
A
O
No. of Cigarettes
Qty. increases
Qty. decreases

6. INCREASE AND DECREASE IN DEMAND 6
105 15
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0
D1
D2
D3
Inc. in demandDec. in demand
Price
Demand

7. MARKET DEAMND
Market demand refers to the sum of all individual demands for a particular goods and
service.
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8. RELATED GOODS
Any two goods are referred as related goods if a change in the price of one good
resulted a change in the quantity demanded of the other.
TYPES OF RELATED GOODS
Substitutes Goods Any two having equal potential to satisfy a given customer need
called as substitutes goods.
Eg- Tea & coffee, Pepsi & coca cola, Maaza & slice.
Complementary Goods Any two goods which must be user to said together Satisfy a
given customer need called as complementary goods.
Eg- pen & paper, car & petrol.
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1)
2)

9. NORMAL GOODS AND INFERIOR GOODS
 Normal Goods Any goods, the demand of which increases with an increase in
customer income known as normal goods.
Eg – car, furniture, A.C, home etc..
 Inferior Goods Any good, the demand of which decreases with an increase in
customer income is known as inferior goods.
“Inferior goods are the cheapest possible options to satisfy a recognized need.”
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10. END OF THE PRESENTATION
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