The Computer and Forecasting of Market Demand and Prices

Although marketing management has solved many information and control problems through the use of computers, we are just beginning to apply mathematical models to improve forecasting of market demand and prices. In complex market situations it is often useful to use a network demand forecasting model such as developed recently by Arthur D. Little for projecting demand of the four major chlor-alkali products. However, the economic laws balancing supply and demand create a strong link between any forecast of demand and price, and any long-range forecast of these factors must reflect this interrelationship. In recent years, marketing simulation models have been built for chemical products which provide this linkage and give a clear view of the future cycles in supply, demand, and price.