Last updated: June 18, 2019
Topic: BusinessMarketing
Sample donated:

Market demand – this is the level of desire or need for a particular good or service. Something is said to be on high demand when the supply is low or when a particular good or service has been marketed properly, market demand is high.

 

The market demand, market potential and sales forecasting relates in several ways such as:-

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Market potential is the possible likelihood of a good or service to be in demand but it is usually something that has been achieved, it is usually a future prospect and only becomes a reality once tried out. It directly relates to sales forecasting in that this is usually a prediction of how the market will perform, there is usually an indication that leads to a forecast in marketing and mostly the indication is the current market demand of a commodity.

The possible influences on revenue and earnings. Revenue is customarily raised by taxation, foreign and domestic loans. When the population growth is very low and immigration rates not yet set at levels that might raise the population level then this could have a negative effect on the revenue and earnings on Qantas. In future this industry might get affected also due lack of human resource. People retire and others leave employment and therefore need replacement for a nation that is not growing in population, this could be a future problem. People also immigrate for search of employment, there are no set levels and therefore it is not certain if this will happen in future. I think the fact that this is an aviation industry then it is directly involved with the immigrations of people. Although this company seems to stand well in the business for from the passage I get to see that Qantas CEO wants to prove the saying by Warren Buffet that ‘nobody ever made money from investing in an airline over the long term’. It is so encouraging that even after the 11th September attack this company still had a positive attitude ‘The international market is far more volatile, particularly since the terrorist
activities of September 11, 2001. Qantas and its part-owner British Airways
(BA) have maintained a strong alliance in the face of turmoil in the aviation
industry generally’.