Demand is the need of the population for goods, expressed in monetary terms and secured by means of payment. Therefore, the magnitude of demand depends primarily on the level of monetary income of the population and the amounts that it can allocate for the purchase of goods.
The main task of studying demand is to identify trends and patterns of development:
The total volume of demand and the volume of demand for certain groups and types of goods;
Internal-group assortment structure of demand in terms of size, growth, colors, styles, etc.;
Structures of demand for the goods of the same name of various enterprises;
Structures of demand for goods of the same name, differing in the type of packaging and packaging;
In seasonal fluctuations in demand for individual goods;
The degree of satisfaction of demand for certain types of goods and their varieties, i.e. identification of goods and their varieties, the demand for which is not satisfied, and for which the supply exceeds the demand;
Opportunities to increase demand for goods, the stocks of which significantly exceed the standards;
Customer requirements for product quality and design
At the heart of the commercial work of enterprises, both wholesale and retail, lies study of various types of consumer demand. Only reliable information about the existing and projected demand allows us to draw the right conclusions about the purchase of exactly those goods that will certainly be sold with the greatest benefit.
As a rule, the analysis of data on the demand of the population is carried out at wholesale trade enterprises, in large stores. Such work can be carried out on their order by organizations specializing in such research. The collection of materials necessary for studying demand is mainly carried out where the end consumer purchases goods, that is, at retailers.
Research is carried out on the basis of materials contained, for example, in the operational documentation of trade enterprises. In addition, questionnaires filled out by buyers, results obtained in the course of surveys during exhibitions or events held in stores to stimulate sales of certain goods are analyzed. When studying demand, three types of it are taken into account:
Implemented;
Unsatisfied;
Forming.
Accounting for realized demand are carried out to identify the actual satisfaction of the demand of the population for individual goods. One of the forms of manifestation of realized demand is the indicator of retail turnover. Analysis of its structure helps to identify the preferences of buyers in relation to certain goods. For this purpose, inventory materials, operational data on stocks and sales of goods, etc. are used. In addition, the use of modern cash registers and bar coding systems for goods allows daily registration of the sale of goods, taking into account not only their names, but also a range of characteristics.
Accounting for unsatisfied demand at retailers is carried out in various ways. For example, special books may be kept in stores, where customer applications for goods that are not on sale are entered. Upon receipt of these goods, buyers are notified by telephone or by postcards.
In addition, in order to study the unsatisfied demand in retail trade enterprises, it is possible to conduct questionnaire surveys of buyers.
Conversations conducted by sellers in the process of customer service also help to identify which goods out of stock buyers would like to purchase.
A change in demand can be associated both with a decrease in the need of buyers for some and an increase in the need for new, replacing them, goods, and with an expansion of demand for goods, the demand for which has already developed. In these cases, we speak of emerging demand.
Exploring emerging demand on novelty products allows retailers to identify the attitude of customers towards them and to more accurately determine the need for these products. For this purpose, exhibitions and sales are held in stores, where buyers get acquainted with the properties of the goods presented, receive advice on their use, participate in tastings, etc.
The materials obtained in the process of studying demand are summarized. Based on the results of their analysis, measures are taken to improve the work on the formation of an assortment of goods at enterprises of both wholesale and retail trade.
On the basis of supply and demand goods are distinguished seller's market and buyer's market. A market characterized by an excess of demand over supply is called seller's market, and if the market is characterized by an excess of supply over demand, then this buyer's market. For seller's market characterized by a limited range and quantitative supply of goods, which encourages the buyer to purchase what the seller offers, without imposing special requirements for quality indicators.
Buyer's market due to the presence of a wide range of goods produced by different manufacturers, which gives rise to competition between sellers of goods that satisfy the same needs of buyers. Such a market provides a choice of necessary goods, which the buyer evaluates for himself at the real selling price and the costs of subsequent operation.
Any price set by the seller will somehow affect the level of demand for the product.
The demand curve shows how many goods will be sold on the market during a specific period of time at different prices. In a normal situation, demand and price are inversely proportional, that is, the higher the price, the lower the demand; the lower the price, the higher the demand. So, by raising the price, the company will sell a smaller quantity of goods. Consumers on a tight budget, faced with a choice of alternative products, will buy less of those that are too expensive for them.
Foreign firms are constantly measuring changes in demand depending on price changes, this indicator is the main one in the ongoing pricing policy. Differences in approaches to measurements are dictated by the type of market. Under conditions of pure monopoly, the demand curve indicates that the demand for a product is justified by the price that the company asks for it. However, with the advent of one or more competitors, the demand curve will change depending on the competitors' prices.
The sensitivity of demand to price changes is characterized by the elasticity index. Elasticity measures the percentage change in one variable as a result of a 1% change in another variable.
If, under the influence of a small change in price, demand almost does not change, then it is inelastic. If at the same time demand undergoes significant changes, then it is considered that it is elastic.
General demand for many manufactured goods is characterized by low price elasticity. What determines price elasticity of demand? Demand is likely to be less elastic under the following circumstances: 1) there is little or no substitute for the product, or there are no competitors; 2) buyers do not immediately notice the price increase; 3) buyers are slowly changing their shopping habits; 4) buyers believe that the increased price is justified by the improvement in the quality of the product, the natural increase in inflation, etc. If demand can be defined as elastic, sellers should think about lowering the price. A lower price will bring more total revenue. And this approach makes sense as long as there is no disproportionate increase in the costs of production and marketing of goods.
In the practice of foreign firms, a numerical (calculated) assessment of the elasticity of demand (supply) depending on price changes is widely used.
If we designated the quantity of demand (supply) as q, and the price of the goods - P, then the indicator (coefficient) of demand (supply) depending on the change in price, or the price elasticity of demand (supply), Ep will be equal to:
where Aq and Ap - change in demand (supply) and prices. %.
Example 1. The price of a product increased by 10%, the demand for it decreased by 3%. The elasticity of demand for a good with a change in price is:
Ep = -3/10 = -0.3
Example 2. The price of a product increased by 10%, the supply (production) of the product increased by 1%. The elasticity of the supply of a product with a change in price is:
Ep > 1 - demand is elastic;
Ep = 1 - demand with unit elasticity.
Positive values of elasticity reflect equally directed changes in interrelated quantities: both increase and both decrease; negative - different directions of changes: one value increases, the other decreases, or vice versa, one decreases, the other increases.
Price elasticity of demand is usually negative, while supply elasticity is usually positive.
Indicators of the elasticity of demand (supply) are widely used by foreign enterprises when setting prices for goods.
First of all, knowing the elasticity of demand for a product put on the market, the entrepreneur has the opportunity to determine in advance the reaction of buyers to a change in price.
In addition, the elasticity indicator serves as a measure in assessing trends in the total costs of the enterprise, depending on the nature of the demand for the product.
Knowing the price elasticity of demand, one can quite simply calculate a number of indicators necessary for entrepreneurial activity, in particular, a possible price change.
It is quite obvious that with an increase in the volume of sales of a product (for example, an entrepreneur has expanded its market share or intends to expand it), using the elasticity coefficient for the product being sold, a possible price change can be calculated.
The elasticity indicator is widely used for price forecasting. At the same time, it should be noted that the demand for individual groups of goods reacts differently (with different elasticity) to price changes. For many goods, the demand for them is usually the more elastic the longer the time period for making a decision. For some goods, demand may be more elastic in the short run.
Studies of demand for gasoline and automobiles conducted in the United States showed that for these two factors, the elasticity coefficients depending on the duration of the period of change in prices and incomes are opposite: for gasoline in the long run, the coefficient of elasticity of demand in absolute terms is greater than in the short run, and for cars - vice versa.
Thus, the study of demand is a very important and necessary part of the pricing methodology. At foreign enterprises, this issue is given exceptional importance, since supply and demand are the two main levers of a market economy.
In support of the importance of elasticity of demand, the following example from business practice.
Instruction
Conduct initial product testing. To do this, distribute prototypes to your dealers, potential customers, or participate in a specialized exhibition. Summarize the data obtained, analyze all the pros and cons, this will come in handy in the further refinement of the product before starting production.
If your product is for , conduct customer surveys. To do this, use the questionnaires, which are distributed in places where this type of goods can be sold. Compose questions in such a way that in the answers you can find out how the buyer would like to see this product, what functions the product should have, and how much it should cost. The more customer needs you identify for a given product, the more opportunity you will have to produce a quality and highly consumable product.
Conduct a market analysis of consumer demand. To do this, research similar products of competitors, and then compare them with data on the demand for your product. This will give you new ideas for improving your product and help you learn about the general trend in the development of this product market. In addition, you will avoid repeating already existing and embodied ideas.
Determine the target market. It should be as specialized as possible, that is, when analyzing the possible demand for your product, you should focus on a specific audience. For example, it is pointless to study the demand for your product from the category of spare parts for cars in grocery stores, etc. In order to understand the situation “from the inside”, put yourself in the place of the buyer and look at your product through his eyes. What is attractive about it, what is fundamentally new and whether it has the best value for money.
It is the relationship between the price and the quantity of a product that consumers are willing and able to purchase at a particular price in a given period of time. It is necessary to distinguish between the concepts of demand and the magnitude of demand. The quantity demanded is the quantity of a good that a buyer is willing to purchase at a particular price, and the total demand for a good is the willingness of the consumer to buy the good at different prices.
Instruction
Any price that is set by the selling company will affect one way or another the level of demand for products. You can find out if a product will be sold on the market at different prices for a certain period of time. In a normal situation, the price and are inversely proportional: the higher the price, the lower the demand. Accordingly, the lower the price, the higher the demand. By raising the price of a product, the company will sell a smaller quantity of the product. Many budget-conscious consumers, when faced with a choice of alternative products, will buy products that are too expensive to afford.
The sensitivity of demand with respect to price changes is an indicator of elasticity. This indicator determines how much one variable can change when another variable changes by 1%. If demand remains virtually unchanged under the influence of a small change in price, it is inelastic. If the demand at the same time changes significantly, then it is assumed to be elastic. Knowing the elasticity of demand for a product produced on , the entrepreneur has the opportunity to determine in advance the reaction of consumers to a change in price. In addition, the indicator of elasticity in assessing trends serves as a measure of the change in total costs depending on the nature of the demand for a product.
The value of current demand can be determined by comparing the volume of goods, their total cost of sale in a given market, and identifying the number of potential consumers of this product living in the area of the market. It is possible to determine the prospective demand with the help of forecasts, by applying various forecasting methods, taking into account the existing trends in demand, the action of various factors of prospective marketing efforts in the future. Evaluation of the price elasticity of demand will show the maximum price at which a product can be accepted by the market for a certain volume of sales.
Related videos
Purchasing demand formed by a variety of factors. On the structure and form of the purchasing demand but the microeconomics of the region, climate, material factor, the level of culture of the population, its professional and national component, and, of course, fashion trends influence. Stores and chains of manufactured goods use a variety of methods of studying demand A.
Instruction
Analyze the suggestions and comments of consumers on the range and quality of products that are sold in your outlet.
Study turnover. See what you bought better. For effective analysis of consumer demand a, it is necessary to determine the number of sales by color, style, size.
Organize a showcase. Show customers new products in all their glory.
Goods with the highest elasticity of demand are goods that require, and therefore very expensive, materials to produce. Such products include jewelry, the coefficient of elasticity of which is much greater than unity.
Example: determine the elasticity of demand for potatoes, if it is known that the average income of consumers for the year increased from 22,000 rubles to 26,000, and sales of this product increased from 110,000 to 125,000 kg.
Solution.
In this example, we need to calculate the income elasticity of demand. Use the prepared formula:
Cad \u003d ((125000 - 110000) / 125000) / ((26000 - 22000) / 26000) \u003d 0.78.
Conclusion: the value of 0.78 lies in the range from 0 to 1, therefore, this is an essential product, demand is inelastic.
Another example: find the elasticity of demand for fur coats with the same income measures. Sales of fur coats increased from 1,000 to 1,200 items compared to the year.
Solution.
Cad \u003d ((1200 - 1000) / 1200) / ((26000 - 22000) / 26000) \u003d 1.08.
Conclusion: Cad > 1, this is a luxury item, demand is elastic.
Demand is one of the key concepts of the economy. It depends on many factors: the price of the product, the income of the consumer, the availability of substitutes, the quality of the product and the taste preferences of the buyer. The greatest dependence is revealed between demand and the price level. Elasticity demand By price shows how much consumer demand has changed with an increase (decrease) in price by 1 percent.
Instruction
Definition of elasticity demand necessary for making decisions on the installation and revision of prices for goods and. This makes it possible to find the most successful course in pricing policy.
Sources and methods of collecting information about consumer demand are diverse. Information is information that is the object of processing, transmission and storage. Not all information appears in the study of demand, but only those that are used at any level of management to make commercial decisions.
To study and forecast demand, a variety of information is needed: economic, demographic, social, etc. Economic information reflects economic relations and processes of social production, distribution, exchange and consumption of material goods. Information must be true, complete, continuous, accurate and timely. Reliability implies that the collected information correctly reflects the development of the process, reveals internal, root causes, and not apparent phenomena and connections. For example, information about large commodity stocks in itself is not yet information that characterizes changes in the demand of the population. It is necessary to know whether the volume of purchases of goods corresponded to the needs of trade enterprises. Fragmentary, one-time information cannot be considered information either, since they are incomparable with data from previous years and other information. It is important that information is received continuously, in a timely manner and from a sufficient number of objects.
In the study of demand, such categories of information as primary and secondary are used.
Primary information is facts that are not publicly available. Researchers of consumer demand will need to take the initiative and make efforts to obtain primary information.
When collecting primary information, the following methods are usually used: the survey method, the observation method, the experimental method.
polling method. Because surveys are relatively inexpensive, they can be applied to a wide range of issues. Currently, this is the most common way to collect primary information. The essence of the survey method is to obtain answers to specific questions through individual interviews, telephone interviews or questionnaires sent by mail.
One of the variants of the survey method, which can be very useful for a trade enterprise when studying customer demand, is the semantic differential.
This is a fairly simple research method that can be used to find out the points of view (attitudes) of buyers on objects, concepts or things. The semantic differential consists of a series of pairs of adjectives and/or short phrases printed on a piece of paper. These pairs, called polar phrases, are opposite in meaning to each other. For example, “good - bad”, “expensive - cheap”, “official and business - warm and friendly”. Two words that are opposite in meaning and make up a pair are placed on the page, respectively, on the left and right, separated by a dotted line, which constitutes the so-called semantic differential scale.
In order to understand a person's attitude to a particular issue, you ask him to mark one position on each of the scales that most closely corresponds to how the person feels about this object.
An example of a semantic differential containing six different scales is given in Table. 3.1. The impressions of a person about a particular product are clarified. A person who thinks that product A is of exceptional quality will check the box above the item in column 1. On the other hand, a person who thinks that the same product is of very poor quality will check in column 6. The fourth column represents a neutral position .
The respondent will need no more than 2 - 3 minutes to fill out the sheet.
In the event that an entrepreneur has a large list of customers, research costs can be reduced by sending letters to 10, 20 or 30% of the total number of customers. You will collect more reliable information if you send out forms based on a random sample. The simplest approach is to select every third, fifth, tenth respondent, etc. from the list.
Counting responses from any number of respondents (i.e. those you are studying) is relatively simple. Each scale is two pro-
Questionnaire for product A using a semantic differential
| Possible answer | Q: What is your opinion about item A? | Possible answer | ||||||
| 1 | 2 | 3 | (4) | 5 | 6 | 7 | ||
| Quality product A | Poor quality item A | |||||||
| cheap goods | Expensive product A (product B) | |||||||
| Good advertisement for product A | Bad advertising for product A | |||||||
| Fashion style item A | Deprecated Product Style A | |||||||
| The seller has an idea about product A | Sellers are not familiar with product A | |||||||
| Good display design for product A | Poor display design for product A | |||||||
Note. 1- extremely; 2 - very; 3 - medium; (4) - I don't know; 5 - medium; 6 - very; 7 - extremely.
word or phrase opposite in meaning plus the distance between them is considered separately. You add up the total number of people who ticked box 1, 2, and so on. Then you multiply the number in the box by the number you ticked in order to have a total score. This total score is then divided by the total number of people who answered to get the average score for the group as a whole.
Multiplying the number of people who put a mark in the column by the number under which it is put, we get the total score (column 3 of Table 3.2). By dividing the total score by the number of respondents, we get the average score for the group as a whole.
It is easy to see that the average score is 5.1.
For clarity, the results of calculations can be presented on a graph. A form is filled in, in which on each scale an approximate position is marked, which accounts for the average score. By connecting all the marks with straight lines, you get
Distribution of respondents on a scale of quality goods A - low quality goods A
| Line number | The number of people who ticked the box | Work (column 1 x gr. 2) |
| 1 | 2 | 3 |
| 1 | 2 | 2 |
| 2 | 3 | 6 |
| 3 | 12 | 36 |
| 4 | 9 | 36 |
| 5 | 31 | 15 |
| 6 | 26 | 156 |
| 7 | 17 | 119 |
| Total | 100 | 510 |
yut "profile" or "image" of the group attitude to different scales of the semantic differential (Fig. 3.1).
This technique is useful not only for finding out opinions about product A, but also for comparing the quality of similar products manufactured by competitors.
By combining the two profile forms on one page, you can chart the strengths and weaknesses of your product (in our example, product A) against the strengths and weaknesses of your competitor's similar product. This will allow you to take steps to eliminate (mitigate) your weaknesses and give you the opportunity to advertise your strengths.
observation method. As the name implies, this method involves observing the behavior of people, their facial expressions and gestures in response to something offered to them. For example, observing customers when they make a purchase. In such a study, technical means are used to collect information: hidden cameras and tape recorders. The main disadvantage of the method is that we can only observe the behavior, but we cannot know what is going on in people's heads.
Experimental method. This method consists of setting up a large-scale experiment under well-controlled circumstances.
Unlike other methods based on the analysis of data on the state of demand, the experimental method is designed to
Rice. 3.1. Table 3.3. Profiles of goods (products) A and B
practice to check the viability of a new product for the market and work out the technique of its sale. If the product is tested in real market conditions, then the company gets the opportunity to reduce the degree of risk and set the optimal price for the product, which contributes to its accelerated sale.
The practice of experimental sales, studied by various research firms, shows that in about half of the cases, new consumer products do not pass the first market test. At the same time, for products that have shown their viability in the local market, the probability of failure when selling on a mass scale is reduced by 10%. Marketing specialists believe that it is this type of market
scientific research provides a reliable basis for planning the future activities of the company.
The length of time a product is tested on the market is also important for obtaining reliable results. According to the firm "A.S. Nielsen", the probability of correctly predicting the results of mass sales of consumer goods is on average equal to: after 2 months. experimental sales - 1/16, 4 months. - 1/5, 10 months - 3/5.
Secondary information refers to the facts that are available, although their refinement requires some effort. In order to use secondary information, it is necessary to find its source.
When collecting secondary information, consider the following:
1) reliability of the source of information;
2) the possibility of error on the part of the collecting agent and the possibility of data falsification;
3) novelty of information;
4) the applicability of information to solve problems (perhaps initially the facts were collected for opposite purposes).
Sources of secondary information include:
1) internal reporting of the enterprise (firm, company);
2) government statistical publications;
3) information of trade organizations;
4) publications of research organizations;
5) scientific and business journals;
6) information from encyclopedias, reference books, etc.
The richest sources of information for decisions
business concerns are enterprise reporting and government statistics.
For a well-established firm, existing reporting includes a databank for many years of product sales: daily, weekly and monthly; inventory level reporting; financial reporting; product lists and personnel data. It is often enough to simply rearrange the facts to get new information. The method of operational accounting is set out in Table. 3.4.
Operational data table. 3.4 reflect the discrepancy between the demand for coats and their delivery to the trading network. As a result, the demand was replenished due to the stocks of clothing that were available in the remnants
for the beginning of the year. The average price of a men's coat in stocks at the end of the 15-day period increased slightly. This was due to the fact that the population purchased men's coats at a lower price.
The degree of satisfaction of demand for goods, taking into account their prices, can be judged by the ratio of the average price in the balance and sales.
Thus, the average price of a men's coat in inventory was higher than in sales by 2.3%, or 20 rubles, and a women's coat, on the contrary, was lower by 6.9%, or 70 rubles, although female customers needed more expensive coats. This was due to the fact that men's coats, although not expensive in price, met the requirements of fashion, had an elegant look, and the buyer preferred cheap coats to expensive ones.
Trade in women's clothing was conducted differently. The average price of one coat sold was significantly higher than in stocks at the beginning of the year and when they arrived. Cheap coats did not meet the requirements of fashion enough: they had uninteresting colors and flaws in tailoring.
The intensity of demand is characterized by the level of sales of goods (column 13), which is calculated using the following formula. Implementation level for 15 days:
a) for men's coats
The degree of development of commodity stocks can be calculated by the formula
The degree of subsidence of commodity stocks:
a) men's coats = 100.0 - 34.5 = 65.5%;
b) women's coats = 100.0 - 35.5 = 64.5%.
Thus, the intensity of demand for women's coats was somewhat higher than for men's demi-season coats.
For a more active sale of a batch of coats, as well as other garments, a reasonable operational sorting of the missing sizes, heights and styles is required.
It should be noted that in the statistical study of demand, budgetary statistics (statistics of family budgets) are often used. Family budget statistics take into account the structure of incomes, expenditures and consumption in a differentiated way for groups of the population with different income levels, depending on the composition and size of the family.
