Question

Briefly explain the key steps involved in market and demand analysis assuming that you are a project manager of a construction company

Answer 1

There are various important steps involved ann market and demand analysis The key steps involved in market and demand analysis are discussed below. These are the crucial steps that needs proper attention of the project manager. It is conducted to know aggregate market demand for the proposed product and its market share.

The first step is situational analysis and specification of objectives. Under this the project analyst has to talk to customers , middleman, competitors and various different personalities in the industry. It is kind of informal talk. The next step is secondary information collection which involves collection of information from different sources. Some time it is already available, census, national survey plan report, economic survey etc . The third step is about conducting a market survey which can be based on ether census or sample method. It provides different kind of primary and secondary information. Use of secondary data is at best when it is accompanied with primary data.A census method involves entire population but sample method selects samples from the population.

The fourth step for market and demand analysis is the characterisation of the market. The market is characterized on the basis of information collected from secondary sources and through the market survey conducted in the previous steps. It becomes the base for characterisation. Effective demand in past amd present , price , distribution methods, policies of government, supply ,the degree of competition, sales promotion, conditions of the market , breakdown point etc describes the product or service. These products and services can be explained in terms of these elements.

After the characterisation of the market the next step is forecasting of demand of demand forecasting. As information from various primary and secondary sources is collected. After it an attempt is made to forecast future demand. There are different method which are used for demand forecasting like Delphi method, Moving average method, exponential smoothing method, Trend projection method, Time series projection method, jury method, chain ratio method, consumption level method, Econometric method etc.

It also includes analysis of the uncertainties in forecasting of demand. As Demand forecasts are subject to error .

The other step is about market planning which includes various Objectives, opportunity analysis , current marketing situation, marketing strategies and action program.