How does consumer demand influence marketing and business strategy?

[nrumohammad0]

Understanding consumer demand is the basis for developing effective marketing strategies. Companies that carefully analyze and forecast demand can not only optimize their sales, but also significantly improve their financial performance.
1. Setting prices
Pricing policy is one of the most obvious tools that companies use to regulate consumer demand. If a company understands how demand reacts to price changes, it can set the optimal price for its product. For example, if a company operates in a segment with elastic demand, it can launch promotions and discounts to increase sales.
2. Forecasting trends
A correct forecast of consumer demand allows a company to promptly armenia phone number list adapt its marketing strategies to changing market needs. For example, having identified a growing interest in healthy eating, a company can offer new products, such as organic products or dietary goods.
3. Assortment management
Demand analysis helps a company determine which products or services should be produced in larger quantities, and which should be reduced or withdrawn from the market. This allows for effective product range management, reduction of product surpluses, and reduction of risks.
4. Market segmentation