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Demand Demand for the services is one of the basic factors to be considered because it refers to the behavior of people with regard to their willingness and ability to buy products at given prices. It is not Just the actual quantity purchased but the quantity that buyers are willing to purchase given a certain price. Without the purchasing power of the consumers, it will not be considered to be a demand. Consumer behavior including their needs and wants is the main force which affects the size of demand in the market.
The following factors may affect the demand. 1. Family Income Income is considered to be the primary measure of a nation’s financial prosperity which represents money or gain resulting from goods or services produced in a given period of time. The income received by an individual served as the buying preference that will actually spend depending on size of family, location, social status, education, health and others. If their income increases, they could afford to avail of services whether market prices increases or not.
This income also will serve as the main source of allowances of the students and children to avail the business product. 2. Population Growth Increase or decrease in population would have a relative effect on the demand. This population is actually the reason to increase or decrease the demand of the product to be offered. 3. Taste and Preference of Consumers The tastes and preferences of consumers would have greatly affect the market that is definitely will increase or decrease the demand.
If consumer’s preference/tastes are more favorable to certain products, there will be an increase in the demand for that product. This is where examination or evaluation of consumer needs, desires, and wants involves administering customer surveys, analyzing consumer information, valuating market positioning strategies, and developing consumer profiles. Tastes and preferences should be evaluated frequently in order to be aware of the needs and preferences of each customer in order for the business to capture the interest and attention of people.
Otherwise, unsatisfied customers might contribute to a decrease in demand. 4. Marketing tools Marketing tools, quite simply, are the tools that a business uses to market its products and services. Therefore, regardless of the business size, it employs the use of marketing tools. An effective Marketing System of a business would be a useful LOL in attracting customers to try and be curious about the business. This is useful in strengthening the market share and business profit.
The tools that the business will use will be the flyers including the different fillings of the product and their prices, tarpaulin, food sampling, and website. Innovative ideas other than the most common ways of advertising the business should be given attention to have served as the competitive edge of the business to convince potential customers that the product offered by the business are fresh, new and unique that they should patronize.