abhishreshthaa
Abhijeet S
What is Market Research?
Simply a matter of finding out as much as you can before committing yourself to an irretrievable step
When you do not have answers through your own Market Information and Intelligence System
What to find out?
The MR Process
Data sources
Internet
Testing Product Acceptability
Sales Forecasting
Potential Market
A set of consumers who profess a sufficient level of interest in a product or service
Available Market
A set of consumers who have interest , income and access to a particular product or service
Qualified Available Market
A set of consumers who have interest, income, access and qualifications for the particular product or service
Target Market
Part of the qualified available market the company decides to pursue
Penetrated Market
A set of consumers who are buying the company’s product or service
Market Demand
Total volume that would be bought by a defined
The market potential of the product with minimum marketing effort of the industry
Sensitivity of Demand
This would be lower than the market potential
Company Demand
Estimated share of market demand at alternative levels of company marketing effort in a given time period
Company Sales Forecast
Expected level of company sales based on a chosen marketing plan and an assumed marketing environment.
Sales Target
Sales goal for a product line,company division or a sales rep.It is a benchmark to evaluate achievements against goals set.
Sales Budget
Conservative estimate of the expected volume of sales and is used for purchasing.production and cash flow decisions
Estimating Market Potential
Chain - ratio method
Demand for Complan = Population *
per capita discretionary income *
% discretionary income on food *
% spent on beverages *
% spent on health beverages *
% spent on white health beverages *
% spent on Complan
Other methods
Simply a matter of finding out as much as you can before committing yourself to an irretrievable step
When you do not have answers through your own Market Information and Intelligence System
What to find out?
- What does the customer need?
- Who is the target audience and how much can you find out about them?
- What is the competition?
- Are there any gaps in the market?
- Would the product be acceptable in the market?
The MR Process
- What is the Marketing Problem?
- What is the Research Problem?
- Developing the Research Plan
- Research Approach
- Research Instruments
- Collecting the Information
- Analysing the information
- Presentation of findings
Data sources
- Reference Library
- Directories of Products/Companies
- The Bombay Stock Exchange
- Industry/Trade Journals
- Trade fairs and Exhibitions
- Company Annual Reports
Internet
Testing Product Acceptability
- If your product is a knock - down kit , give it to the factory peon to assemble it.
- Post the item back to yourself and assess the damage the transporter does to it.
- Try various types of packaging and choose a suitable cost effective option.
- Try a number of product names and determine which is more acceptable.
Sales Forecasting
- Why is it necessary?
- To raise the necessary cash for investment and operations
- to establish capacity and output levels
- to acquire and stock the right amount of supplies
- to hire the required number of people
Potential Market
A set of consumers who profess a sufficient level of interest in a product or service
Available Market
A set of consumers who have interest , income and access to a particular product or service
Qualified Available Market
A set of consumers who have interest, income, access and qualifications for the particular product or service
Target Market
Part of the qualified available market the company decides to pursue
Penetrated Market
A set of consumers who are buying the company’s product or service
Market Demand
Total volume that would be bought by a defined
- customer group
- geographical area
- time period
- marketing environment
- marketing programme
- Market Potential
- Boom period
- Recession
- Market Minimum
The market potential of the product with minimum marketing effort of the industry
Sensitivity of Demand
- Market Potential - Market Minimum
- Market Forecast
- Market demand corresponding to the industry marketing expenditure
This would be lower than the market potential
Company Demand
Estimated share of market demand at alternative levels of company marketing effort in a given time period
Company Sales Forecast
Expected level of company sales based on a chosen marketing plan and an assumed marketing environment.
Sales Target
Sales goal for a product line,company division or a sales rep.It is a benchmark to evaluate achievements against goals set.
Sales Budget
Conservative estimate of the expected volume of sales and is used for purchasing.production and cash flow decisions
Estimating Market Potential
Chain - ratio method
Demand for Complan = Population *
per capita discretionary income *
% discretionary income on food *
% spent on beverages *
% spent on health beverages *
% spent on white health beverages *
% spent on Complan
Other methods
- Market built - up method
- Industry sales and market shares
- Estimating Future Demand
- Survey of buyer’s intentions
- Composite of sales force opinions
- Expert opinion
- Past sales analysis
- Market test method