When it comes down to marketing, their is only one way to forsee the future potenial of a products' market share; that is to look at the elasticity of demand. After a firm decides what to produce and whom it will serve, accuratly estimating demand is extremly important to the scheduling of and intial enterance for the product.Once a marketer can accuractly identify the market segment that the product must be sold to; then the process of identifying the elsaticity of demand for a product can begin.
How ToDetermine Elasticity of Demand:
- Estimate the number of consumers in the market
- Average number of product bought by the consumer annually
- Total annual market demand
- Company's predicted market share
-Annual, monthly, and weekly company demand.
The final and ultimate goal in this process is to take the information from above and use it to create a congruent price elasticity of demand.
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