Importance of Demand Analysis to a Business Enterprise Essay

Importance of remove analysis to business concern enterprises.They are the source of many useful insights for business decision making.The success of chastisement of business faithfuls depend primarily on its ability to generate resources by satisfying the contract of consumers.The firms unable(p) to attract consumers are soon forced out from the market. The importance of hold analysis in business decisions can be explained under following headingsSales forecasting The contend is a basis the sales of the intersection pointion of a firm.Hence,sales forecasting can be made on the basis of demand.For example,if demand is high,sales go away be high and if demand is low,sales will be low.The firms can make different arrangements to increase or reduce production or push up sales on the basis of sales forecast.price 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 institutionalize high price,other thi ngs remaining the same.On the contrary .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 very much a firm can produce depends on its capacity.But how much it should produce depends on demand.Production is not necessary if their no demand.But continuous production schedule is necessary if the the demand for the production is relatively stable.If the demand is less than the quantity of production,new demand should be created by means 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 str ong and growing,the needs for spare pay will be greater.Hence,the financial manager should make necessary financial arrangement to finance the growing need of the capital.