Before we talk about demand analysis , we need to go a step back and talk about market analysis.
In general terms, a market analysis provides you with information about industries, customers, competitors and other variables that will have an influence on your business. It also allows you to perform a supply and demand analysis of a particular product.
Based on this knowledge, it is possible to make informed decisions to achieve the success of your business. One of the key points within a market analysis is the demand analysis . But what do we mean when we talk about demand?
What is demand?
In sales, demand is the quantity of goods phone data and services that a group of people are willing to purchase to satisfy their needs or desires, in a specific period.
Believe it or not, income (i.e. the material possibility a customer has of purchasing a product) is not the only factor that influences demand; there are other factors that affect a user's decision to buy something or not.
One of them is the tastes and preferences of the customer. Especially today, when, for example, 97% of buyers like to research the product online and buy it in a physical store . That's why it's important to know your users thoroughly!
Related to this point is your potential market, that is, those people who are likely to purchase your product or service and who can be included within your ideal client or buyer persona .
However, demand may not be related to customer aspects. For example, it may depend on what the prices of other goods are that are related to it, such as when demand for bread decreases because flour becomes more expensive.
What is demand analysis?
Demand analysis is a process that seeks to understand the level of need and interest that potential consumers have in a particular product or service, within a market.
In general, it is done when trying to break into a certain market, to explore the terrain and evaluate possibilities. With the data obtained from an analysis of the demand for a product , it is possible to determine which is the best offer that can be launched for it.