Download Marketing Research and Sales Forecasting

Marketing Research
&
Sales Forecasting
What is Marketing 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 Marketing 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