Description
This is a presentation about market research and sales forecasting and includes topices like market research process, sales forecasting, target market, available market, penetrated market, market demand, market potential,
Market Research & Sales Forecasting
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?
? 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?
Do I need Market Research?
? Yes. Provided I know what I want.
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
Market
? A set of all actual and potential buyers of a product
or service
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
doc_810073474.pptx
This is a presentation about market research and sales forecasting and includes topices like market research process, sales forecasting, target market, available market, penetrated market, market demand, market potential,
Market Research & Sales Forecasting
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?
? 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?
Do I need Market Research?
? Yes. Provided I know what I want.
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
Market
? A set of all actual and potential buyers of a product
or service
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
doc_810073474.pptx