The market is a very dynamic place. This means that there is no guarantee that if you are doing well with a product at the moment, then you will always be able to continue enjoying such a good position. One of the major concerns of every business owner is that the demand for their item should not fall. There are innumerable companies in the industry that are working all the time and coming up with new items. the masses are actually fickle minded and this is why they just flock to the company where they see maximum benefits for them. In such a condition, it is actually very difficult to be able to retain a base of loyal customers. Read ahead now to know about the top factors that influence the demand for a product. With this knowledge, you can then change the threats into opportunities.
- The price: First of all, the price of the commodity needs to be fixed very strategically. No customer is willing to pay extra. This means that you have to ensure a good profit margin as well as keep the price moderate. If the customer gets the same product at a cheaper rate elsewhere, then they might start thinking that you are taking extra money from them. You may not even realise it but it ruins your image before them. If they then engage in negative word of mouth publicity, you suffer immensely.
- Income of the consumer: Secondly, the income of the consumer needs to be good so that they can actually continue to purchase your items one of the most important things here is the way the government is functioning and what is the position of your currency in the world economic scenario. If the overall rate of earning is improving and there are more job opportunities for the people, then you are also able to sell more.
- Tastes and preferences: The tastes and preference of the people also need to be kept in mind. There may be a time when they are all loving your items but then they might just flip over. For instance, the fashion industry is the best example where there is a constant change in the way people look at items. There may be an instance when a particular trend is too famous and this is why everyone starts to buy the similar types of items. But, fashion is very dynamic and this is why they may then start liking something else after a while. In such an instance, you are on the top at one point but then the sales of your company experience a sharp fall.
- The product life cycle: Last but definitely not the least, the product life cycle refers to the origin of a product after which it becomes popular but then loses all effect after a while. This means that you need to think of an innovative way to repackage the product and introduce it.