Market and Demand Analysis

PM(CA)

Market and Demand Analysis

1. Identification of Target Market:

➢ Target Market refers to the Potential (forecast of) Demand for a product or service. Forecast refers to the inference of what is likely to happen in future. Demand is the quantity of a good /service which buyers are willing to purchase/avail during a particular period and for a particular market environment (e.g. price of a good, price of its substitutes, complementaries, incomes, tastes, preferences, etc.). Forecast of demand is required both for planning and controlling.

➢ To identify a particular segment of the market based on its structure (income/age groups, industries/geographical distribution/exports, etc.)

➢ To identify the nature of demand (monsoons, disposable income, prices, fashion, etc.)

2. Marketing Strategy:

➢ Distribution Channels

➢ Advertisement and Publicity

➢ Brand Image or Brand Name

➢ After Sales Service

3. Conducting Market Study:

For conducting Market Survey, Collection and Classification of Data is required. It can be done with Primary Data (Data collected solely for a particular purpose by the user and Secondary Data (Data collected already by somebody is being used).

A. Market Research with Primary Data:

1. Statement of Objectives

2. Specification of Data Requirements

3. Design of Sample

4. Mode of Collecting Data

5. Conducting Survey and Obtaining Data

6. Analysis and Conclusion

Advantages of Primary Data:

➢ High accuracy

➢ Easy analysis

Problems in collecting Primary Data:

➢ Sacrificing accuracy to reduce costs

➢ Less reliability if opinion rather than fact is collected

➢ Poor understanding of respondents

➢ If confidential information is asked, less reliable information may be forthcoming

➢ Respondents may find difficult to answer questions

B. Market Research with Secondary Data

➢ Past records may offer...