Market demand is the combined demand of every buyer in the market it is the total amount of purchased products or family of product within specific demographic. Demographic could be sanctified by age, gender, income etc.
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Understanding the mechanis of market demand

Base line of market demand is called market minimum. It pertains to the number of sales that would occur regardless of any marketing efforts or underlying factors. There is also term when we talk about market demand, the market potential. It is the join forces of all factors, what I mean to say is that an increased of marketing effort but have no effect on overall sales.
Market demand can also be divided into two categories, primary and selective demand. Primary demand is the total demand for all brands of a given product or service. Selective demand is the demand for a given brand of product or services.
In entering business you should study the market share of your product as well as your share in the market. After that study your competitor, what are their market shares and their customers. Give an effort to know what are the needs and wants of their loyal consumers. Understanding your competitors will also help you to develop a better understanding of your customers. You can learn the reasons that customers buy from competitors as well as understanding what strategies the competition use to market to these people. Then gauge what amount of this market you can realistically see your business capturing.
You can measure market demand by publishing industry statistics, survey or even by spying on your competitors and compiling a list of how many customers they have and how many sales they make. Using this knowledge, you can estimate what the market demand for your business will be. The market demand of your business is equal to your potential market share multiplied by the total market demand.
Market Demand is essential for every business. It will help you to develop effective strategies to promote and sell your product to as many potential customers as possible and it will also help you to be prepared.