Aggregate demand is inextricably linked with price factors of national product production. The more goods and services enter the international market, the faster the level of aggregate demand grows. This is due to the fact that the growth of national incomes of other countries allows them to buy imported goods on the world market, which in turn expands the demand for these same products, but within the country-producer.
Consequently, trade with developing and developed countries will be especially useful for a developed state.
Why consider price and non-price factors of demand
Taking into account price and non-price factors country email list influencing demand is a primary task for every organization whose main goal is to achieve high results and profit growth.
Let’s take a closer look at why this needs to be done:
Entering new markets. Every entrepreneur should have an idea of what competitors offer and what expectations potential buyers have from the products. Market analysis should show what the potential demand is for the selected product category. If the demand is low, you need to find a new market to work in.
Planning the production volume .
The company’s management must understand what volumes of products the enterprise must supply to the market in order to satisfy customer demand. At the same time, it is necessary to take into account the factors that influence the demand of the target audience.
If the focus is exclusively on the price category of products this can lead to homogeneity of the assortment and cause indignation on the part of consumers. Do not forget about seasonality, this factor regulates the level of demand depending on the time of year.
Formation of pricing policy
The cost of a product is based on how much potentia internet users are reluctant to click l buyers can pay for it. In times of high demand for the offer, it is necessary to raise prices. And in situations where consumer income is decreasing, it is also better to reduce the cost.
Marketing strategy development . Investments in the advertising component of business are necessary. When demand for a certain category of goods decreases, with the help of well-planned marketing strategies you can return demand for these goods by investing more money in advertising.
Developing a product range . After conducting a market analysis, it will become clear which products are more popular with potential customers. This factor cannot be ignored, as it can lead to loss of customer loyalty and increase the company’s losses.
How to analyze price and non-price factors of demand
Demographic metrics . Thanks to open access to fresh list Rosstat information, it is possible to assess the natural population growth and the migration processes that occur.
Economic forecasts
A rough understanding of the onset of inflation and the volume of changes in the population’s income will help to correctly assess the economic situation and plan actions depending on changes in the purchasing power of clients.
Monitoring trends makes it possible to assess the growth
