it is possible to develop valuable insights into future market conditions and demand levels based on a deep understanding of the forces behind total-market demand. define it broadly enough to include all potential end users so that you can both identify the appropriate drivers of demand and reduce the risk of surprise product substitutions. analyses like these can lead to the construction of industry demand curves—graphs representing the relationship between price and volume. managers may wish to use a “tree” diagram like the accompanying one constructed by a management team in 1985 to study demand for paper. in these cases, managers must decide whether to develop their forecasts based on the available historical data or to undertake their own market research programs, which can be time-consuming and expensive.

market and demand analysis is conducted to know about the aggregate demand for the product or service and the market share that the proposed project will enjoy. it has to be supplemented with collection of primary data. in a census survey the whole population is considered while in a sample survey a sample of population is observed to gather relevant information. after developing the questionnaire a pilot survey is done to look for any mistakes/difficulties. (vi) scrutinizing the information gathered – the information gathered may be inconsistent and the responses may be biased.

it is possible to develop valuable insights into future market conditions and demand levels based on a deep understanding of the forces behind total-market demand. define it broadly enough to include all potential end users so that you can both identify the appropriate drivers of demand and reduce the risk of surprise product substitutions. analyses like these can lead to the construction of industry demand curves—graphs representing the relationship between price and volume. managers may wish to use a “tree” diagram like the accompanying one constructed by a management team in 1985 to study demand for paper. in these cases, managers must decide whether to develop their forecasts based on the available historical data or to undertake their own market research programs, which can be time-consuming and expensive.

before a detailed study of a project is undertaken, it is necessary to know, at least roughly, the size of the market because the viability of the project depends critically on whether the anticipated level of sales exceeds a certain volume. in order to get a “feel” of the relationship between the product and its market, the project analyst may informally talk to customers, competitors, middlemen, and others in the industry. the information required for demand and market analysis is usually obtained partly from secondary sources and partly through a market survey.

the concept of market structure is central to both economics and marketing. the strategic role of product substitutability and market definition in economic msa is illustrated in figure 1. product substitutability is linked to market definition, which, in turn, is integral to market structure. marketing msa, like economic msa, focuses on the strategic concept of market definition. in this variant of marketing msa (right side of figure 2), product market definition depends upon the level of product substitutability. in marketing msa, market structure is relative to the fundamental approach used for defining the market--behavioral, judgmental, or a hybrid of the two. of interest here are the insights the marketing msa framework (leading up to stage iv) has for economic msa. for example, marketing msa is concerned with both the underlying determinants and the dynamic of consumer preferences. generally, that which marketing msa treats explicitly is part of the environment in economic msa. of interest is how marketing msa can add to the application of cross elasticity in managerial economic msa. marketing msa provides a methodology for filling in some of these gaps. this should be of value to managerial economic msa as it grapples with the relationship between market structure and elasticity structure.