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Entrepreneur Marketing: Demand Forecasting - Essay Example
Author : albertreilly
Pages 6 (1506 words)
Entrepreneur Marketing Demand Forecasting Name: Tutor: Course: Institution: Date: Entrepreneur Marketing Demand Forecasting Introduction Forecasting refers to an attempts aimed at predicting overall level of future demand and not specific links, hence there are set of techniques applied in order to forecast demand (Meade & Islam, 2001)…
In fact, the paper will discuss techniques applied in marketing demand forecasting. Information concerning the future demand is vital to the firms, for pursuing optimal pricing strategy; hence, the decision to change prices is made considering the future demand. In case where is over-optimism in relation to the estimates of demand, this may result to losses, whereby the demand influence a certain price that sets out at a low level. However, accuracy of information provided creates the likelihood of making decisions that have a positive impact on the firm’s operations and profitability. Decisions made by the managers in a firm are influenced by the level of demand for products, whereby a firm takes non-price factor as a competitive strategy. For instance, the level of advertising in a firm is determined by the perception, which is needed for stimulation of the demand for products (Juster, 2008). Therefore, the level of advertising expenditure depicts the additional cost of the firm that is considered unnecessary spending, hence requiring them to be avoided. There are other cases where the firm expects demand to be low and they seek to compensate expenditure of money that is considered wasted. ...