We learned “changes in demand” effects the change in price especially in the international market strategy.
Previously we learned from our experiences changes in the price of a product will result in a new quantity demand.
As i believe prices is not the only thing which influence on demand , there are ranges of causes for more or less being demanded even if the price is unchanged .
Example:- Sessional products happened to be increase in demand and increase in prices .
Today we have more supply of one commodity which lead to drop in prices rapidly due to excessive competition in international market, demand become less where it lose the effectiveness and quality of the products same time.
To stay competitive in international market, advertising cannot be the only channel, you need real a strong team of sales and marketing people in others countries, who can help introduce your products and show how competitiveness of your commodities than other country commodities.
Example: Expectations about future price rises can influence current demand . Demand for oil increase during the revolution in Libya. It is anticipation conflict was imminent and that such event would disrupt supplies of oil and raise the price .
It created complication and complexity in the international market, as long term projection was totally out of structure , for short term gain we made error of losing long term profits. For instant if things never happen in that way may be the demand of oil could have been increased in international market, steady supply globally.
My believe :- Decision made in rush without impromptu creation identical ideology creates failures . When we bring instability in international market prices movement ascending scope but demand become descending as fear grows, trust of previous people are gone how to plug back those segment into the proper channel, it is very difficult task unable to achieve it within a short period.
The risk factor will be higher for customer as per them “emotional strategy” have a valid role to play sometimes . Every individual will be very caution to distinguish between movement along and shifting will be intensive atmosphere with its financial crash. Credentials will be also ignored at time as reputation and financial status are not stable reasons with five basic foundation pillars not having more support from other countries .
Hereby my closure of the statement , demand changes according to the circumstances created by others, worst the demand reduce , for betterment demand could be steady or increasing rapidly but surely no deceasing mode.
I just hope all best for everyone here.
Copyright ✍🏻SK Sandhu