Demand analysis: What is it and what is it for?

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Demand analysis is a practice that provides companies with necessary information about their market .

In this way, it consists of an extraordinary strategic tool to provide a deep insight into the consumption pattern of customers, estimate the needs for inventory renewal, among other essential functions for the proper functioning of organizations.

We can also conceptualize it as an colombia phone number list attempt to predict the future of consumption variables that directly impact the operations and productivity of a business. In other words, it covers the reasons that drive consumers to seek and acquire a solution.

Based on hard data about the target audience, corporate history and market landscape, it optimizes strategic decision-making and, consequently, corporate actions.

This means that the analysis allows for the development of actions that encourage the development of more precise solutions oriented to market needs, a situation that results in the optimization of profits and the minimization of the risks of launching a good or service.

Thus, demand verification provides the following benefits:

facilitates production;
helps plan marketing actions;
prevents over or under production;
adjusts the workforce (increasing or decreasing staff);
reduces costs;
promotes the use of space;
optimizes processes;
improves budget structuring.

The 3 fundamental steps of demand analysis
To make a complete and efficient analysis, you must consider a series of variables related to both supply and demand.

Regarding the key points of the offer, keep in mind:

Sales price and other substitute, complementary and derived products;
Production process costs;
Fluctuations in the availability of inputs and productive resources.
On the other hand, the variables that affect demand are:

Average target income;
Consumer needs, expectations and preferences;
Prices of other goods and services related to the solution you offer;
Number of potential customers.
By considering these aspects, you will be able to direct business efforts towards creating measures and actions that increase the added value of the brand for its public.

In addition to weighing these variables, carrying out a demand analysis involves carrying out 3 steps.