Question

1. List and briefly discuss the objectives of demand analysis?

Answer 1

Objectives of Demand analysis are :

1) demand forecasting : forecasting refer to making idea for demand in future with respect to current demand and trend . Forecasting helps in preparing for the future demand accordingly . Purchase , stock and raw material are taken into account according to the forecast demand. To meet the future demand , production is done accordingly.

2) demand analysis helps in setting quotas for sales executives. Once demand analysis is made the respective quotas or minimum demand to be fullfilled by each salesman is defined and allotted. Appraisal and salary are decided according to the quotas and ability of salesman to meet it's target .

3) making policy : demand analysis helps in framing policy for production , sales , cost management , efficiency and economy of scale.once the demand is analysed the required policy are framed to achieve the result .

4) it also help in manupilation of demand of goods in the market .