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    Market Potential and Sales Forecasting

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    raamse
    This document discusses market potential and sales forecasting. It provides an overview of different methods for estimating market potential, including determining potential buyers and estimating purchase rates. It also discusses uses of sales forecasts such as production planning and evaluating performance. Various forecasting techniques are described, including judgment-based methods, time-series methods, and model-based regression analysis using variables like marketing programs and competition. Customer research methods like surveys and market testing are also summarized.

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    Market Potential and Sales Forecasting

    Uploaded by

    raamse
    442 views30 pages
    This document discusses market potential and sales forecasting. It provides an overview of different methods for estimating market potential, including determining potential buyers and estimating purchase rates. It also discusses uses of sales forecasts such as production planning and evaluating performance. Various forecasting techniques are described, including judgment-based methods, time-series methods, and model-based regression analysis using variables like marketing programs and competition. Customer research methods like surveys and market testing are also summarized.

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    This document discusses market potential and sales forecasting. It provides an overview of different methods for estimating market potential, including determining potential buyers and estimating purchase rates. It also discusses uses of sales forecasts such as production planning and evaluating performance. Various forecasting techniques are described, including judgment-based methods, time-series methods, and model-based regression analysis using variables like marketing programs and competition. Customer research methods like surveys and market testing are also summarized.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    442 views30 pages

    Market Potential and Sales Forecasting

    Uploaded by

    raamse
    This document discusses market potential and sales forecasting. It provides an overview of different methods for estimating market potential, including determining potential buyers and estimating purchase rates. It also discusses uses of sales forecasts such as production planning and evaluating performance. Various forecasting techniques are described, including judgment-based methods, time-series methods, and model-based regression analysis using variables like marketing programs and competition. Customer research methods like surveys and market testing are also summarized.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 30

    Market Potential and Sales

    Forecasting

    Forecasts versus Potential

    Five major uses of potential


    estimates
    To make entry/exit decisions
    To make resource level decisions
    To make location and other resource
    allocation decisions
    To set objectives and evaluate
    performance
    As an input to forecasts

    Deriving Potential Estimates

    Useful Sources for Potential


    Estimates

    Government Sources
    Trade Associations
    Private Companies
    Financial and Industry Analysts
    Popular Press
    The Internet

    New or Growing Product


    Potential
    Relative Advantage
    Compatibility
    Risk

    Methods of Estimating Market and


    Sales Potential
    Determine who are the potential
    buyers or users of the product
    Determine how many are in each
    potential group of buyers defined by
    step 1
    Estimate the purchasing or usage
    rate

    Market Potential: Electric


    Coil

    Uses of Sales Forecasts


    To answer what if questions
    To help set budgets
    To provide a basis for a monitoring
    system
    To aid in production planning
    By financial analysts to value a
    company

    Scenario-Based Forecasts

    Judgment-based Forecasting
    Methods

    Nave extrapolation
    Sales force composite
    Jury of expert opinion
    Delphi method
    Electronic Markets

    Summary of Forecasting
    Methods

    Graphical Eyeball
    Forecasting

    Customer-Based Methods
    Market Testing
    Situations in which potential customers
    are asked to respond to a product or
    product concept

    Market Surveys
    A form of primary market research in
    which potential customers are asked to
    give some indication of their likelihood
    of purchasing a product

    Time-Series Forecasting
    Methods
    Moving Averages
    Exponential Smoothing
    Regression Analysis

    Potential Customers by Industry


    and Size

    Sample Data

    Times-Series Extrapolation

    Time-Series Regression
    Example

    Trial over Time for a New


    Product

    Model-Based Methods
    Regression analysis
    Leading indicators
    Econometric models

    Forecasting Method Usage

    Use of New-Product Forecasting


    Techniques by All Responding
    Firms

    Developing Regression
    Models
    Plot sales over time
    Consider the variables that are
    relevant to predicting sales
    Customer status and traits
    Our marketing programs
    Competitive behavior
    General environment

    Collect data
    Analyze the data

    Cereal Sales Data (monthly)

    Cereal Data

    Cereal Data Correlation


    Matrix*

    Regression Results: Cereal


    Data*

    Format for Reporting a Regression


    Model Based Forecast

    The Impact of Uncertain Predictors


    on Forecasting

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