Division 6.1.6

Explain the structure of demand in terms of:

1. (a)

   the different phases of the markets, for example, take-off, expansion, maturity and decline, and a forecast of the growth rate of demand;

2. (b)

   the importance of customer preferences, in terms of brand loyalty, product differentiation and the provision of a full range of products;

3. (c)

   the degree of concentration or dispersion of demand;

4. (d)

   segmentation of customers into different groups with a description of the ‘typical customer’ of each group;

5. (e)

   the importance of exclusive distribution contracts and other types of long-term contracts;

6. (f)

   the extent to which contracting authorities, State undertakings or similar bodies are important as a source of demand.