Chapter8OrganizationalDemandAnalysisBA303-LPChew.pptVIP

Chapter 8. Organizational Demand AnalysisBA 303 - L.P.Chew OUR TERMINOLOGY… POTENTIAL= POSSIBILITIES FORCAST = EXPECTATIONS MARKET = INDUSTRY SALES = COMPANY The formulation of market strategy is planned on the basis of the marketing potential associated with each of the firms target segments Once marketing strategy plans are set, a sales forecast can be developed and then used to guide tactical production, advertising, and logistics decisions Chapter 8. Organizational Demand Analysis pivotal role of market potential analysis and sales forecasting in planning and controlling marketing activities, and to provide a firm understanding of the various approaches for measuring potential and forecasting sales. Chapter 8. Organizational Demand Analysis chapter focuses on the different approaches for calculating market and sales potentials qualitative and quantitative forecasting approaches are discussed in terms of the applicability to various forecasting situations. Executive judgment, sales force composite, and the Delphi method are the qualitative forecasting methods Chapter 8. Organizational Demand Analysis Quantitative methods, including time series analysis and causal techniques Executive judgment, sales force composite, and the Delphi method are the qualitative forecasting methods These qualitative methods are most effectively applied to forecasts for new products or in situations where little historical data exists Methods of Sales Forecasting (1) Simple Trend Analysis—sales forecast based on firm’s recent performance. Market Share Analysis—similar to trend analysis but assumes market share will stay the same. Jury of Executives—company experts predict sales. Sales Force Surveys—salespeople share experiences and customer feedback. Consumer Surveys—measure attitudes, purchase intentions, expectations, consumption rates, and SWOT. Methods for Sales Forecasting (2) Chain-Ratio Method—firm starts with general market informat