Company Demand

We are now ready to define company demand.

■ Company demand is the company's estimated share of market demand at alternative levels of company marketing effort in a given time period.

The company's share of market demand depends on how its products, services, prices, communications, and so on are perceived relative to the competitors'. If other things are equal, the company's market share would depend on the size and effectiveness of its market expenditures relative to competitors. Marketing model builders have developed sales-response functions to measure how a company's sales are affected by its marketing expenditure level, marketing mix, and marketing effectiveness.33

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