Page 118 - DMGT521_PROJECT_MANAGEMENT

Unit 7: Market and Demand Analysis

 A SWOT Analysis is another method under the situation analysis that examines Notes
the Strengths and Weaknesses of a company.

 A market survey is one method of market research that is based on questioning an audience
or segment of the market.
 Secondary market research uses the information gathered from secondary sources, such as
government agencies, trade journals, or the chamber of commerce.
 Demand forecasting and estimation gives businesses valuable information about the
markets in which they operate and the markets they plan to pursue.

 Demand forecasting is the area of predictive analytics dedicated to understanding consumer
demand for goods or services.
 In demand forecasting, as with most analysis endeavors, data preparation efforts are
critical.

7.7 Keywords

Agencies: Agencies are the middlemen of the business world. When businesses need a specific
worker who specializes in the trade, they go to a recruitment agency.
Distributors: Distributors are important as they are the ‘holding areas for inventory’. Distributors
can help manage manufacturer relationships as well as handle vendor relationships.
Economic Environment: An analysis of trends regarding macroeconomics, such as exchange
rates and inflation rate, can prove to influence businesses.

Political and Regulatory Environment: An analysis of how active the government regulates the
market with their policies and how it would affect the production, distribution and sale of
the goods and services.

Situation Analysis: It is a method managers use to analyze both the internal and external
environments of an organization in order to understand the firm’s own capabilities, customers
and business environment.
Social/cultural Environment: Interpreting the trends of society; which includes the study
of demographics, education, culture etc.
Suppliers: Suppliers provide raw materials that are required to build products. There are 7
different types of Suppliers: Manufacturers, wholesalers, merchants, franchisors, importers and
exporters, independent crafts people and drop shippers. Each category of suppliers can bring a
different skill and experience to the company.
Technological Analysis: An analysis of technology will help improve on old routines and suggest
for new methods in being more cost efficient. In order to stay competitive and gain an advantage
over others, businesses must have sufficient knowledge on the technological advances.
7.8 Review Questions

1. Explain about Market and Demand Analysis.
2. Discuss about Situational Analysis.
3. Describe about “Conduct of Market Survey”.
4. Discuss about Demand and Forecasting.

5. Discuss about Technical Analysis.

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