marketing research and sales forecasting

8/4/2019 Marketing Research and Sales Forecasting

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Market Research

&

Sales Forecasting

By:

Ankit Bhatnagar


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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


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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 themarket?


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Do I need Market Research?

Yes. Provided I know what I want.


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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


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Data sources

Reference Library

Directories of Products/Companies

The Bombay Stock Exchange

Industry/Trade Journals

Trade fairs and Exhibitions

Company Annual Reports

Internet


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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 thedamage 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.


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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


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Market

A set of all actual and potential buyers of a

product or service


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Potential Market

A set of consumers who profess a sufficient

level of interest in a product or service


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Available Market

A set of consumers who have interest ,

income and access to a particular product or

service


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Qualified Available Market

A set of consumers who have interest,

income, access and qualifications for the

particular product or service


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Target Market

Part of the qualified available market the

company decides to pursue


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Penetrated Market

A set of consumers who are buying the

companys product or service


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Market Demand

Total volume that would be bought by a

defined

customer group

geographical area

time period

marketing environment

marketing programme


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Market Potential

Boom period

Recession


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Market Minimum

The market potential of the product with

minimum marketing effort of the industry


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Sensitivity of Demand

Market Potential - Market Minimum


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Market Forecast

Market demand corresponding to the

industry marketing expenditure

This would be lower than the market

potential


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Company Demand

Estimated share of market demand at

alternative levels of company marketing

effort in a given time period


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Company Sales Forecast

Expected level of company sales based on a

chosen marketing plan and an assumed

marketing environment.


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Sales Target

Sales goal for a product line,company

division or a sales rep.It is a benchmark to

evaluate achievements against goals set.


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Sales Budget

Conservative estimate of the expected

volume of sales and is used for

purchasing.production and cash flowdecisions


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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


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Other methods

Market built - up method

Industry sales and market shares


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Estimating Future Demand

Survey of buyers intentions

Composite of sales force opinions

Expert opinion Past sales analysis

Market test method

marketing research and sales forecasting

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