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    4.market Potential Sales Forecasting

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    Akash Ranjan
    This document discusses market potential, sales forecasting, and methods for estimating market size. It defines key terms like market potential, industry sales potential, and company sales forecast. It also outlines factors that influence market potential for new and mature products and lists common sources of information and methods for estimating market size and sales potential. These include analysis based methods, sales extrapolation, market surveys, and relying on expert opinions. The overall goal is to accurately forecast sales for planning, resource allocation, and performance evaluation.

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    4.market Potential Sales Forecasting

    Uploaded by

    Akash Ranjan
    39 views10 pages
    This document discusses market potential, sales forecasting, and methods for estimating market size. It defines key terms like market potential, industry sales potential, and company sales forecast. It also outlines factors that influence market potential for new and mature products and lists common sources of information and methods for estimating market size and sales potential. These include analysis based methods, sales extrapolation, market surveys, and relying on expert opinions. The overall goal is to accurately forecast sales for planning, resource allocation, and performance evaluation.

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    4.Market Potential Sales Forecasting

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    This document discusses market potential, sales forecasting, and methods for estimating market size. It defines key terms like market potential, industry sales potential, and company sales forecast. It also outlines factors that influence market potential for new and mature products and lists common sources of information and methods for estimating market size and sales potential. These include analysis based methods, sales extrapolation, market surveys, and relying on expert opinions. The overall goal is to accurately forecast sales for planning, resource allocation, and performance evaluation.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    39 views10 pages

    4.market Potential Sales Forecasting

    Uploaded by

    Akash Ranjan
    This document discusses market potential, sales forecasting, and methods for estimating market size. It defines key terms like market potential, industry sales potential, and company sales forecast. It also outlines factors that influence market potential for new and mature products and lists common sources of information and methods for estimating market size and sales potential. These include analysis based methods, sales extrapolation, market surveys, and relying on expert opinions. The overall goal is to accurately forecast sales for planning, resource allocation, and performance evaluation.

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    Market Potential & Sales

    Forecasting
    Market Size Estimation

    Market Potential
    Estimate

    Unrealized
    Potential

    Company Sales Industry Sales


    Forecast Potential Estimate
    DEFINITIONS
     Market Potential- total size of the market - the
    ultimate maximum sales that an industry sector can
    achieve
     Industry Sales Potential – maximum sales that is
    reasonably attainable under a given set of conditions
    in a given period of time – what you can achieve
     Company Sales Forecast – quantum of sales under
    a given set of conditions in a given period of time –
    what you probably will achieve
     Unrealized Potential- the difference between the
    Market Potential & Industry Potential
    Use of Market Potential
     To make entry/exit decisions
     To make resource allocation decisions – firms
    are more willing to allocate resources if the
    product is in the growth phases.
     Stage of PLC of product is important here
     Set objectives & evaluate performance
     As an input to forecasts
    Information Sources
     Primary data – direct market surveys &
    research
     Secondary data –
     Government sources
     Trade Associations
     Financial & Industry Analysts
     Internet & Media
     Past Sales data
    New Product Potential
     Relative Advantage
     Compatibility
     Risk
     Overall the higher the relative advantage
    (benefits) and lower the incompatibility –
    lesser the risk in new product acceptance
    Mature Product Potential
     The more mature a product – sales comes
    from re-orders from past customers
     For FMCG - usage rate
     For consumer durables – replacements,
    upgrade to acquire new product features, to
    change to a new version/model
    Methods of Estimating Market & Sales
    Potential
     Analysis based Methods –
     Determine potential buyers/users of the
    product
     Estimate Usage rate
     Estimate Area potential – geographic,
    population etc.
    Sales Forecasting
     To answer “what if “ questions
     Set Sales Budgets
     Basis of a Monitoring system
     Help Production Planning
     Used by financial analysts in valuation of a
    company
    Methods
     Judgement Based –
     Sales Extrapolation
     Opinion of sales force & experts
     Customer Based –
     Market Testing
     Market Surveys

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