Market%20Research%20

1
Market ResearchSales Forecasting
2
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

3
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?

4
Do I need Market Research?

• Yes. Provided I know what I want.

5
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

6
Data sources

• Reference Library
• Directories of Products/Companies
• The Bombay Stock Exchange
• Industry/Trade Journals
• Trade fairs and Exhibitions
• Company Annual Reports
• Internet

7
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.

8
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

9
Market

• A set of all actual and potential buyers of a
  product or service

10
Potential Market

• A set of consumers who profess a sufficient level
  of interest in a product or service

11
Available Market

• A set of consumers who have interest , income and
  access to a particular product or service

12
Qualified Available Market

• A set of consumers who have interest, income,
  access and qualifications for the particular
  product or service

13
Target Market

• Part of the qualified available market the
  company decides to pursue

14
Penetrated Market

• A set of consumers who are buying the companys
  product or service

15
Market Demand

• Total volume that would be bought by a defined
• customer group
• geographical area
• time period
• marketing environment
• marketing programme

16
Market Potential

• Boom period
• Recession

17
Market Minimum

• The market potential of the product with minimum
  marketing effort of the industry

18
Sensitivity of Demand

• Market Potential - Market Minimum

19
Market Forecast

• Market demand corresponding to the industry
  marketing expenditure
• This would be lower than the market potential

20
Company Demand

• Estimated share of market demand at alternative
  levels of company marketing effort in a given
  time period

21
Company Sales Forecast

• Expected level of company sales based on a chosen
  marketing plan and an assumed marketing
  environment.

22
Sales Target

• Sales goal for a product line,company division or
  a sales rep.It is a benchmark to evaluate
  achievements against goals set.

23
Sales Budget

• Conservative estimate of the expected volume of
  sales and is used for purchasing.production and
  cash flow decisions

24
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

25
Other methods

• Market built - up method
• Industry sales and market shares

26
Estimating Future Demand

• Survey of buyers intentions
• Composite of sales force opinions
• Expert opinion
• Past sales analysis
• Market test method