Market Demand
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Running head: QANTAS MARKET DEMAND
Qantas Market Demand
Qantas Marketing Demand
Before any attempt at marketing can be successful, a marketer must carefully study the potential market, and determine its potential demand. This demand is market demand, which is the “total demand of every individual willing and able to buy a good” (AmosWEB, 2004). Determining this market demand is the first step in evaluating market opportunities (Kotler & Keller, 2006). The next step in determining market opportunities is to produce a sales forecast, which is the amount of sales a company expects to make based on its marketing plan and the environment of the market it expects to encounter. The third step involves determining market potential. Market potential is the maximum amount of sales in an industry in a given period, depending on marketing efforts and the marketing environment (Kotler & Keller, 2006). These three steps are the three steps necessary to measure demand in a specific area or group (Kotler & Keller, 2006). Once the demand is measured, it is possible for marketers to design specifically targeted marketing plans to take advantage of the demand.
Qantas Airlines
Qantas airlines, Australias largest airline, has been trying to determine current and future market demand, and has had several issues to deal with in making this determination.
The airline market in Australia is stable, but there are warning signs about the potential of the market. Australia has a slowing population growth rate, since fertility rates are dropping. In addition, immigration is not to a level that would show an increase, or even a leveling, of market loss due to slowed fertility rates. This means that the potential for future customers is decreasing, and Qantas will have to find a way to shore up its customer base in the face of this market change. If there are less potential customers in the future, it will be difficult to maintain current levels of sales, or increase the sales levels, as those consumers come of age. The company could then have trouble with revenues, and therefore have trouble allocating funds for marketing.
The company could use the multiple-factor index, which measures market potential by comparing factors such as the population of a specific area, versus the total population of the country, along with factors such as disposable income, age, or whatever other factors that might be applicable. These factors are then given weights, and they measured in an index that can determine the potential of a given market area (Kotler & Keller, 2006). This index will help specifically market to regions where the best potential for growth is located, and better allocate marketing funds (Kotler & Keller, 2006).