The demand for your goods and services is the amount the customers are willing and able to buy at any given time.
There is an inverse relationship between demand and price, which is expressed in the ‘law of demand’. This basically states that the demand for a good or service will increase if price falls and decrease if price rises.
What are the factors that might affect the demand for your product?
The price of the commodity – if prices are high, then less people would be willing to buy and even if they are willing may not be able to afford the product. Unless of course your product is targeted to an exclusive few whose purchasing power is strong.
The price of other commodities – especially if you target budget purchasers you should take this into consideration. If there are similar products on the market that are cheaper, customers will quite likely choose those.
Brand loyalty – some customers are loyal to certain brands and will buy no other; in most instances it is very difficult to persuade them to change.
Income – customers purchasing power will determine what they buy; you cannot price your products out of the reach of your target market.
Number of buyers – the number of persons or businesses that can, and do buy your products.
Tradition and beliefs – some customers buy based on religious and family traditions; hence you would never sell pork to a Jehovah’s Witness since religion dictates that they do not consume it.
Taste – taste differ per individuals and customers often buy what they like.
