Market Measurement and Forecasting

Market Measurement & Forecasting Presented by:

Ishan Shukla

M.Pharma(I year,I sem )

MARKETMEASUREMENT AND FORECASTING

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One major reason for undertaking marketing research is to identify market oppertunities. once the research is complete, the company must measure and forecast the size, growth, and profit potential of each market opportunity. sales forecast are used by finance to raise the needed cash for investment and operations. By manufacturing dept. to establish capacity and output levels, by purchasing to acquire the right amount for supplies. By human recourse to hire the needed numbers of workers. Marketing is responsible for preparing the sales forecast ,if its forecast is far off the mark, the company will face excess or inadequate inventory. sales forecast are based on estimates of demand .

THE MEASURE OF MARKET DEMAND

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Companies can prepare as many as 90 different types of demand estimates for six different product levels, five space levels, three time periods.

The Measures of Market Demand

Each demand measure serve a specific purpose. a company might forecast short-run demand for a particular product for the purpose of ordering raw materials, planning production, and borrowing cash it might forecast regional demand for its major product line to decide whether to set up regional distribution. the size of the market hinges on the number of buyers who might exist for a particular market offer. But there are many productive ways to break down the market.

1.THE POTENTIAL MARKET 2.THE AVAILABLE MARKET 3.THE TARGET MARKET 4.THE PENETRATED MARKET.

Terms commonly used in Market Demand and Forecasting.

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Market potential is a quantitative estimate of the total possible sales by all firms selling the same product in a given market. It gives an indication of the ultimate potential for the product for the industry as a whole, assuming that the ideal marketing effort is made. Company potential...