DEMAND ESTIMATION

1
DEMAND ESTIMATION
2
MARKET DEMAND

• Total Market Demand is a function of stated
  conditions, such as
• geographic area
• time
• given economic conditions
• given marketing expenditures

3
PRIMARY Versus SELECTIVE DEMAND

• Primary demand demand for all similarly defined
  products/services (e.g., milk)
• Selective demand demand for a particular brand
  (e.g., Carnation 2 milk)

4
Demand Estimation Exercises

• How would you estimate demand in a community for
  a
• Foreign film theater
• Self-storage facility
• Music CD store

5
Common Methods

• Chain Method
• Market Buildup Method
• Statistical Demand Analysis
• Market factor index method

6
Forecasting Future DemandMethods

• All are based on
• What people say
• Survey of Buyers Intentions
• Sales Force Opinions
• Expert Opinions
• What people do
• Test markets
• What people have done
• Past-sales analysis (time-series)
• Statistical demand analysis