FORECASTING DEMAND AND MEASUREMENT BY JEET PAREKH IIT BHU. Market measuring and forecasting requires an analysis of the market with an aim of expressing it in quantitative (numeric) quantities both present and in the future.The quantitative measurement and forecasting of the market, together with its qualitative characteristics, are used as a basis for decision making by marketing management.Once the research is complete, the company must measure and forecast the size, growth, and profit potential of each market opportunity

1. Forecasting
Demand and
Measurement

2. PURPOSE
IDENTIFY MARKET
OPPURTUNTIES

4. HOW?
MEASURE AND
FORECAST SIZE
GROWTH AND
POTENTIAL MARKET
OPPURTUNITIES

5. WHO?

7. MAJOR CONCEPTS
IN DEMAND
MEASUREMENT

8. MARKET DEMAND

9. COMPANY DEMAND
DEMAND FUNCTION
SALES FORECAST
POTENTIAL

10. DEMAND
MEASUREMENT

12. WAYS TO
MEASURES OF
MARKET
DEMAND

13. POTENTIAL
MARKET

14. AVAILABLE MARKET

15. TARGET
MARKET

17. PENETRATED
MARKET

19. MARKET
FORECAST
MARKET DEMAND
CORRESPONDING TO
THE LEVEL OF
INDUSTRY
MARKETING
EXPENDITURE

20. MARKET
POTENTIAL
LIMIT
APPROACHED TO
MARKETING
SKILLS AND GIVEN
ENVIRONMENT

21. Marketing Demand as a function
of Marketing Expenditure
• Planned expenditure
Market
potential, Q2
Market
forecast, QF
Market
minimum, Q1
Industry Marketing Expenditure
MarketDemandintheSpecificPeriod

22. Marketing Demand as a function
of Marketing Expenditure
• Recession
Market
Potential
(prosperity)
Market
Potential
(recession)
Industry Marketing Expenditure
MarketDemandintheSpecificPeriod
Prosperity

24. COMPANY DEMAND
IS THE COMPANY’S
ESTIMATED SHARE OF
MARKET DEMAND AT
ALTERNATIVE LEVELS OF
COMPANY MARKETING
EFFORT AT A GIVEN TIME
PERIOD

25. MARKETING EXECUTIVES WOULD
LIKE TO ESTIMATE..
TOTAL MARKET POTENTIAL
AREA MARKET POTENTIAL
TOTAL INDUSTRY SALES AND
MARKET SHARE

26. TOTAL MARKET
POTENTIAL
MAXIMUM SALES
AVAILABLE TO ALL
CUSTOMER
DURING A GIVEN TIME
PERIOD

27. Area Market Potential
Estimating market
potential of different
MAXIMUM AMOUNT OF
SALES IN AN AREA
DURING GIVEN PERIOD
OF TIME

28. THE 2 MAJOR METHODS OF
ASSESSING AREA MARKET
POTENTIAL ARE…
MARKET-BUILD-UP METHOD
PURCHASES
MULTIPLE-FACTOR INDEX
METHOD
-

29. INDUSTRY SALES AND MARKETING
SHARES
–IDENTIFYING COMPETITORS AND
ESTIMATING THEIR SALES
–DERIVE DATA FROM: INDUSTRY
TRADE ASSOCIATION
–BUY REPORTS FROM MARKETING
RESEARCH (E.G. NIELSEN)
–INDUSTRY DATA, COMPETITORS DATA
–OVER-ALL OR BRAND BY BRAND

30. Industry
Macro economiC
Industry
Company Forecast

31. ALL
FORECASTS
ARE BUILT ON
ONE OF THE
THREE
INFORMATION
BASES:

32. WHAT
PEOPLE
SAY
(SURVEY)

33. WHAT PEOPLE
DO (TEST
MARKET)

34. WHAT
PEOPLE
HAVE DONE
(BUYING
HISTORY)

35. • SURVEY OF BUYING INTENTIONS
• FORECASTING
• IS THE ART OF ANTICIPATING WHAT
BUYERS ARE LIKELY TO DO UNDER A
GIVEN SET OF CONDITIONS.
• DO YOU INTEND TO BUY A CAR IN
THE NEXT 6 MONTHS?
• PURCHASE PROBABILITY SCALE
•
Estimating Future Demand
0.00 0.20 0.40 0.60 0.80 1.00
No Chance Slight
Possibility
Fair Possibility Good
Possibility
High
Possibility
Certain

36. Summary:
6.Making the decision
1.Defining the
problem
& objectives
2.Developing the
research plan
3.Collecting
information
4.Analyzing
the information
5.Presenting the findings
Sample plan, Sources, Contact Methods, Instruments
Customer is happyThe brand is profitableEmployees are satisfied
Market and company Demand
Total and Area Market Potential, industry sales &
market share
Sales Force, Experts, History and Market Sales

39. JEET PAREKH
Created by --
Indian Institute of Technology ,
Banaras Hindu University Varanasi
Linkedin :https://in.linkedin.com/pub/jeet-
parekh/54/b10/51b
During an
Internship by --
Prof. Sameer Mathur
Indian Institute of Management ,
Lucknow
(www.IIMintenship.com)