Outline the five demand influencing factors
A new supply-
Holidays-
Leisure activities
Change in infrastructure
Change in demand generators
Rank them in order of impact from the highest impact to lowest
A new supply-
Change in demand generators.
Holidays-
Leisure activities
Change in infrastructure
Explain how these factors will impact demand, positively or negatively
Change in infrastructure- Better infrastructure such as luxury seats and comfortable 4D glasses can attract more clients. The effect of the changes increases the price tickets. On the positive side, Clients that prefer VIP experience shall opt to pay whatever price as long as they benefit from the services. Negatively Clients who prefer to experience movies on the big screen regardless of the comfort available shall not be impacted as they will pay for the regular seats and glasses. Improved infrastructure attracts new customers and leads to increased sales. Maintenance and running costs increase hence the need for an increase in price tickets. In my opinion, improved infrastructure impacts positively demand but have fewer effects due to the price change. Furthermore, new infrastructures attract high-end clients.
Holidays- During holidays, individuals have free time. Educational facilities release their students and staff. This will have a positive impact on the demand for movies. Parents will prefer to take out their children for a film. Sales revenues increases are due to the rise in clients. The holidays can also impact the demand negatively since clients might travel to other states to spend time with their families. This might cause a decline in sales making the business experience financial distresses.
A new supply-New supply means an alternative to the existing product. If company B decides to venture and open a cinema nearby cinema A, this leads to increased competition. This means that some of the clients shall prefer cinema B to A. Furthermore, the new supply might introduce advanced features compared to cinema B. The impact of the competition is split a market share, cinema A shall not be enjoying monopolies of the market anymore. On the other hand, increased competition improves the quality of goods and services. Cinema A will be forced to improvise its services to retain existing clients and attract more clients. This is classified as a positive impact of new supply.
Leisure activities Cinemas located near tourism sites, attractional centers, and leisure halls are likely to increase their market share. Individuals and tourists commonly visit these sites. The cinemas adjacent to the sites are said to have positioned themselves in the market. This is a strategy used in marketing, aiming to maximize the available resources. Tourists and travelers might prefer to relax their minds after their tours, and a movie cinema would be the ideal place to go.
Furthermore, the visitors might be curious to experience movies in a cinema. Due to the increased demands, the cinemas can slightly increase ticket prices. A negative impact is during off-peak seasons, or during extreme weather conditions, the sites might lack any visitors or customers. To curb situation cinemas might be forced to offer discounted tickets and offers such buy one get one free or buy a ticket get one pack of popcorn free.
Change in demand generators
If cinema A decides to restructure its marketing strategies and introduce more reliable campaigns that create awareness, then the plan might yield results. The organization should carry in-depth market research and obtain as many details about consumer needs, tastes, patterns, and preferences. The results from the study enable organizations to approach the market in a specific manner. Proper advertising and market profoundly impact the demand for a product. If Cinema A reorganizes its marketing strategy, then it might attract more clients.