Importance of Demand Analysis to a Business Enterprise Essay

grandeur of take aim analysis to business enterprises.They are the source of many helpful insights for business decision making.The success of failure of business regulars depend in the beginning on its ability to generate resources by satisfying the requirement of consumers.The riotouss ineffective to attract consumers are soon forced out from the market. The importance of convey analysis in business decisions can be explained under following(a) headingsSales forecasting The demand is a base the sales of the intersection of a firm.Hence,sales forecasting can be made on the basis of demand.For example,if demand is high,sales will be high and if demand is low,sales will be low.The firms can make different arrangements to increase or reduce doing or push up sales on the basis of sales forecast.Pricing decisions The analysis of demand is the basis of pricing decisions of a firm.If the demand for the product is high,the firm can charge high price,other things remaining the s ame.On the opposite .If the demand is low,the firm cannot high price.The demand analysis also helps the firm in profit budgeting.Marketing decisionsThe analysis of demand helps a firm to formulate marketing decisions.The demand analysis analyses and measure the forces that determine demand.The demand can be influenced by manipulating the factors on which consumers base their demand on attractive packaging.Production decisionsHow much a firm can make water depends on its capacity.But how much it should produce depends on demand.Production is not requisite if their no demand.But continuous production schedule is necessary if the the demand for the production is comparatively stable.If the demand is less than the quantity of production,new demand should be created by way of promotional activities such a advertising.Financial decisions The demand condition in the marker for firms products affects the financial decisions as well.If the demand for firms product is strong and growing,t he needs for superfluous finance will be greater.Hence,the financial manager should make necessary financial arrangement to finance the growing need of the capital.