Definition: The Opinion Poll Methods are used to collect opinions of those who possess the knowledge about the market, such as sales representatives, professional marketing experts, sales executives and marketing consultants. The Opinion poll methods include the following survey methods: Expert-Opinion Method: Companies with an adequate network of sales … [Read more...] about Opinion Poll Method
Consumer Survey Method
Definition: Consumer Survey Method is one of the techniques of demand forecasting that involves direct interview of the potential consumers. Consumer Survey Method includes the further three methods that can be used to interview the consumer: Complete Enumeration Method: Under this method, a forecaster contact almost all the potential users of the product and ask … [Read more...] about Consumer Survey Method
Methods of Demand Forecasting
Definition: Demand Forecasting is a systematic and scientific estimation of future demand for a product. Simply, estimating the sales proceeds or demand for a product in the future is called as demand forecasting. There are several methods of demand forecasting applied in terms of; the purpose of forecasting, data required, data availability and the time frame within which … [Read more...] about Methods of Demand Forecasting
Steps in Demand Forecasting
Definition: Demand Forecasting is a systematic process of predicting the future demand for a firm’s product. Simply, estimating the potential demand for a product in the future is called as demand forecasting. The demand forecasting finds its significance where the large-scale production is involved. Such firms may often face difficulties in obtaining a fairly accurate … [Read more...] about Steps in Demand Forecasting
Demand Forecasting
Definition: Demand Forecasting refers to the process of predicting the future demand for the firm’s product. In other words, demand forecasting is comprised of a series of steps that involves the anticipation of demand for a product in future under both controllable and non-controllable factors. The business world is characterized by risk and uncertainty, and most of the … [Read more...] about Demand Forecasting
Determinants of Market Demand
Definition: The Market Demand is defined as the sum of individual demands for a product per unit of time, at a given price. Simply, the total quantity of a commodity demanded by all the buyers/individuals at a given price, other things remaining same is called the market demand. There are several factors that determine the demand for a product. These are: Price of … [Read more...] about Determinants of Market Demand
Market Demand
Definition: The total quantity that all the individuals are willing to and are able to buy at a given price, other things remaining the same is called as Market Demand. In other words, Market Demand refers to the sum of individual demands for a product at a given price per unit of time. What is Individual Demand? Individual demand refers to the quantity of a commodity … [Read more...] about Market Demand
Monopoly Theory of Profit
Definition: Another source of a pure profit (over and above the normal profit) is said to be a Monopoly, characterized by a single seller without any close substitute. Monopoly Theory of Profit posit that the firms enjoying the monopoly power restricts the output and charge higher prices for its products and services, than under perfect completion. So far, all the theories … [Read more...] about Monopoly Theory of Profit
Schumpeter’s Innovation Theory of Profit
Definition: The Innovation Theory of Profit was proposed by Joseph. A. Schumpeter, who believed that an entrepreneur can earn economic profits by introducing successful innovations. In other words, innovation theory of profit posits that the main function of an entrepreneur is to introduce innovations and the profit in the form of reward is given for his performance. … [Read more...] about Schumpeter’s Innovation Theory of Profit
Knight’s Theory of Profit
Definition: The Knight’s Theory of Profit was proposed by Frank. H. Knight, who believed profit as a reward for uncertainty-bearing, not to risk bearing. Simply, profit is the residual return to the entrepreneur for bearing the uncertainty in business. Knight had made a clear distinction between the risk and uncertainty. The risk can be classified as a calculable and … [Read more...] about Knight’s Theory of Profit