Question

Under which method demand for new product is based on the information about old product

Answer 1

The demand forecasting is the scientific tool to predict the likely demand of a product in the future. It is the starting point of fulfilling a customer order and based on the forecasted demand, a firm commits its resources, capacities and capabilities for a period of time to create goods and services that its customers value and are willing to pay for. Hence, According to American Marketing Association, “Demand forecasting is an estimate of sales in dollars or physical units for a specified future period under a proposed marketing plan.” The demand of new product can be forecasted by anyone of the following techniques: