in demand occurs due to the following factors:
Changes in the level of income
in consumer behavior.
In India, there is an never increasing
rate in the growth of population. This naturally adds to the number
of buyers leading to a quantitative change in the volume of
production. The developmental programmes of the Government ensure
increase in income enabling the consumers to spend more. This also
adds to the stream of demand qualitatively and quantitatively. In
India 'Rural markets' are evolved mainly due to this reason. The
consumer behavior is a continuous source of reasons that invite
changes in product planning. The other reasons could be narrated as
these arise out of internal economies of a firm. As long as the
profit motive is the criterion for the existence of a firm, changes
in production mix are inevitable.
the foregoing discussion, it is clear that product planning has
assumed front rank importance in modern market oriented business.
Not only that, product planning also invites intelligent, appropriate
and scientific approach. The case history of the most successful
companies has convinced that product planning calls for the highest
degree of top management ability and effort. It also makes it clear
that under the changing marketing conditions one has to see
thingsiclearly before undertaking the production of any product.
Hence, it is said “marketing activities precede production