FORECASTING DEMAND AND MEASUREMENT
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Transcript of FORECASTING DEMAND AND MEASUREMENT
Marketing Demand as a function of Marketing Expenditure
• Planned expenditure
Market potential, Q2
Market forecast, QF
Market minimum, Q1
Industry Marketing ExpenditureMar
ket D
eman
d in
the
Spec
ific
Perio
d
Marketing Demand as a function of Marketing Expenditure
• Recession
Market Potential(prosperity)
Market Potential(recession)
Industry Marketing ExpenditureMar
ket D
eman
d in
the
Spec
ific
Perio
d
Prosperity
COMPANY DEMAND
IS THE COMPANY’S ESTIMATED SHARE OF MARKET DEMAND AT ALTERNATIVE LEVELS OF COMPANY MARKETING EFFORT AT A GIVEN TIME PERIOD
MARKETING EXECUTIVES WOULD LIKE TO ESTIMATE..
TOTAL MARKET POTENTIALAREA MARKET POTENTIALTOTAL INDUSTRY SALES AND MARKET SHARE
Area Market PotentialEstimating market potential of different
MAXIMUM AMOUNT OF SALES IN AN AREA DURING GIVEN PERIOD OF TIME
THE 2 MAJOR METHODS OF ASSESSING AREA MARKET POTENTIAL ARE…
MARKET-BUILD-UP METHOD
PURCHASESMULTIPLE-FACTOR INDEX METHOD-
INDUSTRY SALES AND MARKETING SHARES
–IDENTIFYING COMPETITORS AND ESTIMATING THEIR SALES–DERIVE DATA FROM: INDUSTRY TRADE ASSOCIATION–BUY REPORTS FROM MARKETING RESEARCH (E.G. NIELSEN)–INDUSTRY DATA, COMPETITORS DATA–OVER-ALL OR BRAND BY BRAND
• SURVEY OF BUYING INTENTIONS• FORECASTING• IS THE ART OF ANTICIPATING WHAT
BUYERS ARE LIKELY TO DO UNDER A GIVEN SET OF CONDITIONS.
• DO YOU INTEND TO BUY A CAR IN THE NEXT 6 MONTHS?• PURCHASE PROBABILITY SCALE•
Estimating Future Demand
0.00 0.20 0.40 0.60 0.80 1.00No Chance Slight
PossibilityFair Possibility Good
PossibilityHigh Possibility
Certain
Summary:
6.Making the decision
1.Defining the problem
& objectives
2.Developing the research plan
3.Collectinginformation
4.Analyzing the information
5.Presenting the findings
Sample plan, Sources, Contact Methods, Instruments
Customer is happyThe brand is profitableEmployees are satisfied
Market and company Demand
Total and Area Market Potential, industry sales & market share
Sales Force, Experts, History and Market Sales