Market Demand
Market Demand: The demand in the market is equal to the demand in the business. It is a more general term that refers to the whole demand for a product in a certain industry. For example, in India, demand for two-wheelers entails demand for two-wheelers manufactured and sold by all enterprises. It displays the overall demand picture. To see his position, sometimes referred to as a company’s market share in an industry, a marketer should bear in mind the larger situation of industry/market demand. In developing a comprehensive marketing strategy, market demand is critical.
“Market demand for the product is defined as the total volume that would be purchased by a specified customer group in a defined geographic region in a defined time period in a defined marketing environment under a defined marketing campaign,” says Philip Kotler.
Thus, in a particular marketing context, market demand refers to total product sales to certain categories of customers during a specific time period and in defined geographic locations.
Market Demand Elements
The following aspects are inextricably revealed by a systematic examination of the above-mentioned definitions:
Product
The entire demand for certain items in a sector is referred to as market demand. The product’s location or scope must be stated. Which industry or category does the company’s product belong to? It may be determined based on who the consumers are and what the product’s goal is. As a result, we must state the market demand for the given goods.
Volume in total
It displays the total volume of sales as a number of units or a dollar amount. It denotes the product’s overall sales in the industry. Total volume, for example, refers to the quantity (or units) of total refrigerator demand in India.
Purchasing or Purchasing
Market demand only includes the amount that has been ordered and bought. Units that are ordered, delivered, or consumed are included in market demand.
Groups of Customers
The market demand is measured in terms of various types of consumers. The total volume needed by various types of clients, such as industrial, institutional, and individual customers.
Geographical Region
Different geographical locations or locales might be used to define market demand. It might be expressed in terms of a nation, state, region, district, or any other geographical entity.
Fixed Time Limits
Only when market demand is represented in terms of time is it significant. Take, for example, the demand for two-wheelers in 2007. Time is measured in weeks, months, quarters, and years.
Environment of Marketing
Obviously, a variety of variables impact market demand. The marketing environment is made up of several elements. As a result, assumptions about the marketing environment, which includes economic, cultural, social, political, and other influences, must be included.
Marketing Programme Definition
The marketing program/strategy has an impact on market demand. As a result, it is explained in terms of a particular marketing campaign that includes product, pricing, promotion, and distribution. As a result, market demand is presented in the framework of a certain marketing strategy.
All of these components should be included when calculating market demand for a complete picture of overall demand. We must differentiate between market and business demand in this case. Market demand refers to the entire demand for a product in an industry, while company demand refers to the desire for a specific business unit’s goods. Market forecasting is concerned with market demand, whereas sales forecasting is concerned with corporate demand. Market demand and sales forecasts, on the other hand, are made on a shaky basis (i.e., more or less similar).