Market Demand

Market Demand is the quantity of a good that consumers are willing and able to purchase at various prices during a period of time. Market Demand key factor in assessing opportunity. There are many ways to gauge market demand; start with market share and growth potential. Companies that grow, succeed. Understanding the nature of market demand requires identifying the target audience. Shaping existing demand into a steeply inclined demand curve creates an attractive entrepreneurial environment. Growth separates an entrepreneurial business from a small business. Another aspect of market demand to consider is the durability of the product to enable a sound return. The amount and nature of return is a market function. What return do the capital providers (e.g. stockholders, investors, creditors, etc.) require? Another factor of market demand is customer reachability: Are the channels of distribution established or projected? What is the access to these channels or the costs to establish them? Finally, how will the customer perceive the price-value relationship? For example, computer programs and other productivity applications help customers complete tasks in a drastically reduced amount of time. This time-saving value may, in turn, win them new clients and revenues. That’s value creation.