Forecasting Market Demand
Accurately forecasting market demand is one of the most difficult and important things to do as a marketer. It is about generating numbers out of expectations, opinions, statements, prior patterns, and a host of other subjective elements.
Marketers use a lot of tools and techniques to forecast market demand for their products. ListenSoft is software that translates spoke commands into written text and computer actions without using the keyboard. What makes this forecasting market demand for the named product important is as follow;
-Importance of analyzing market to find out whether ListenSoft will really sell or not.
-Estimating market demand.
What the market place has in store for ListenSoft as far as production capacity and pricing strategy forecasted as follow;
75000 units100000 units125000 units
Analyzing based on comparable products, seems to be a good technique to choose for predicting the demand for ListenSoft.
Using comparable products trends to produce good result especially in the field of tech. products. When we are launching a new product, it is wise to price it slightly high due to value perception at the early stages of a product's lifecycle. The result for the first year came as follow;
100000 units100500 units$235.00
For the second year the challenge comes from the competitors and the company forecasted the sale in three segments; Doctors, IT Industry and Banking Industry. The results for the second year are as follow;
215000 units220175 units8.43%
For the following years the challenge comes undeniable. Going with price sensitivity analysis is the best approach to win the competitive marker
215000 units220175 units$225.007.74%
What we have to remember is that demand forecasting is not an easy task. There are no certainties and barriers. Demand forecasting is more than just number crunching. To support...