Marketing Appendix B

Front 1

Most widely used method of computing stockturn rate.

Back 1

(Cost of Sales) / (Average inventory at cost)

Front 2

Caveats of Ratios

Back 2

Only a red flag
Need a comparison point
Only as good as the data

Front 3

ROI and ROA

Back 3

ROI= Net Profit / Investment Required
ROA= Net Profit / Total Assets

Front 4

Forecasting Sales-Two groups of Methods

Back 4

Extending past behavior-and then forecasting into the future.
Forecasting future behavior-much harder to achieve.

Front 5

Forecasting Sales-Extending Past Behavior

Back 5

Trend lines
Moving average-taking past data points and averaging that together to forecast.
Risk-the future is assumed to be like the past.

Front 6

Factor Method of Forecasting

Back 6

Look for factors that are related to sales.

Front 7

Forecasting Methods- Buying Power Index-Based on?

Back 7

Published by Sales and Marketing Management.
1. Population in a market.
2. Retail Sales in a market.
3. Income in a market.

Front 8

Forecasting Methods-Jury of Executive opinion

Back 8

Ask your executives for their projections of sales.
Advantages-they should know what they are talking about.
Disadvantages-not evolved in day-to-day activities.

Front 9

Forecasting Methods-Sales force estimate

Back 9

Ask your sales people for how they are going to do.
Advantages-First hand info.
Disadvantages-Young sales people may low ball you so it looks like they did better than they actually did.

Front 10

Forecasting Methods-Survey of buyers

Back 10

Ask your buyers

Front 11

Forecasting Methods-Market Test

Back 11

Change your marketing mix and use test markets to evaluate.