Wednesday, 4 April 2018

Level of Demand: How to Measure and Predict Level of Demand?

In the execution of marketing efforts, all companies engaged in expansion requires a series of working mechanism so that the products offered on the market can last a long time. This context is in fact closely related to the efforts of management to be able to sustain periods of growth and maturity stage of the product they offer in the target market.

Introduction to Level of Demand

On each type of demand measurement, has a specific purpose. Thus, a company can create a short term forecast regarding the requests total will be a product type to serve as the basis in ordering raw materials, production planning and scheduling activities financing that is the short term. Even so, the long-term forecast is equally important to the company can be implemented, whereas the corresponding company serving a number of regional consumer and also national. 

In this context an important interest of the expansion of the market (market area) which so bring long-term benefits for the continuity of the company's marketing efforts.

The market demand, such as the following quotes in the market demand for a product is the whole volume that will be bought by a group of consumers, in particular areas geographically specific, particular in short time and in particular, under the marketing environment level and herb marketing efforts specific industry.

The Marketing Efforts

The important thing to realize is the management regarding the number of overall market demand. This concept emphasizes that a number of products that remain attractive to consumers, is not an absolute number, but a function of the existence of certain conditions that one of them is the level of effort and herb marketing efforts industry (mix of industry marketing effort). 

As for the other objective conditions that develop in the external environment, such as the existence of the discretion of the Government that sets the level of prices for certain types of products, as well as the determination of who is pleased with the marketing area for goods concerned. A forecasting sales and consumer demand are very necessary in each session planning marketing efforts. 

A marketing manager who in his work are expected to interact with the Manager of field production, is expected to be able to determine an estimate of the number which it is very useful for open up quota production, activities in the field of planning promotion, and can serve as a guideline for raw in the context of product development.

Sales Forecast

The sales forecast accuracy will be reduced during the measurement period and where the data is needed in doing estimation, very minimal obtained management. In this connection, usually sales forecast made in the quarter and annual as well as there is of them that includes a period of five years, for which this period reflect the presence of a range of custom-made integrated to implement marketing activities. 

Thus, if the company has only historical data for the last quarter mean forecasts that implemented only includes quarterly, whereas if the annual data, then the predictions that were made also in the annual period. 

Using Tools for measuring

Thus the importance of the meaning of forecasting, then every effort geared to examining the magnitude of the volume of sales in the coming time, required a variety of judgement or opinion that may be in the form of the opinion of the managers, salesmen, as well as through specific analysis tools.

A The tools, that is used for forecasting activities, namely:

  • The opinion of the Manager
  • Opinions of the salesman
  • Mathematical Capital
  • Buyer intentions Survey
  • Methods of regression.
The importance of the opinion of the managers put in an attempt to estimate the level of sales, made possible because the managers have the the level think art can not be secured so only with other employees. It is generally considered that managers are having a certain level of qualifications, such as a sharp analysis of power, as well as with the experience of a relatively large.


Sales forecasting methods by involving the opinion expressed by the salesman, then also seen strategic meaning because the salesmen generally can know the interest and fascination of consumers so that they consume goods. In this connection, the salesman is regarded as the spearhead for an executing company marketing efforts, so that its role cannot be ignored in the process of supporting the marketing efforts of the company's products. 


Furthermore, the method of forecasting with the buyer's intention to hold a survey intended to obtain information about the number and type of products expected to be consumed by consumers or end users. In this connection it can be made an estimation about the demand for a product in its entirety with the road ask directly to our customers concerning their needs will be the company's products.
Method of forecasting by using analysis tools such as mathematical models, time series analysis and simple regression methods, intended as one of the efforts made to measure management level of product demand made by provides a number of quantitative data.

Usually, using equipment statistical analysis will be known the magnitude of the volume of sales in the future, where the use of statistical analysis tools will be known the magnitude of the volume of sales in the future, where the use of quantitative analysis that ignores a variety of external variables not measured changes qualitatively during carrying out of marketing efforts.

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