DEMAND ANALYSIS
DEMAND ANALYSIS Demand for goods and service constitutes one side of the product market which is essential for the creation, survival and the profitability of a firm. If there is no demand for a good, there is no need to produce that good. The demand for the product plays a major role to achieve the objective of a firm (Maximize the revenues and profits).Since production takes time; the business manager needs to know the likely demand at a future date to plan the production level properly. To know the likely demand for the goods or services, the manager has to analyze the factor that influences the demand. Importance of Demand Analysis Businesses often spend a considerable amount of money in order to determine the amount of demand that the public has for its products and services. Incorrect estimations will either result in money left on the table if it’s underestimated or losses if it’s overestimated. Demand analysis is necessary for ...