Marketing Strategy: A Decision-Focused Approach Chapter 5

Front 1

The size of the potential market, the likely demand from all actual and potential buyers of a product or product class.

Back 1

Market Potential

Front 2

The size of the current customers.

Back 2

Penetrated Market

Front 3

The size of the potential and penetrated markets for the market segments.

Back 3

Target Market.

Front 4

Prediction of sales.

Back 4

Sales forecast

Front 5

They use past history and various statistical techniques, such as multiple regression or time series analysis, to forecast the future based on an extrapolation from the past.

Back 5

Statistical methods

Front 6

To directly observe or gather existing data about what real consumers do in the product-market of interest.

Back 6

Observation-based Forecasting

Front 7

1. Statistical and Quantitative Methods
2. Observation
3. Surveys or Focus Groups
4. Analogy
5. Judgment
6. Market Tests

Back 7

Methods for Estimating Market Potential and Forecasting Sales

Front 8

1. Survey of Buyer's Intentions
2. Survey of Salesforce Opinion

Back 8

Types of Surveys or Focus Groups

Front 9

1. Experimental Test Market
2. Live Test Market

Back 9

Types of Market Tests

Front 10

Seeks to explain the adoption of an innovative product or service over time among a group of potential buyers.

Back 10

Diffusion of innovation theory

Front 11

It involves the attitudinal changes experienced by individuals from the time they first hear about a new product, service, or idea until they adopt it.

Back 11

Adoption Process

Front 12

1. innovators
2. Early Adopters
3. Early Majority
4. Late Majority
5. Laggards

Back 12

Adopter Categories (5)

Front 13

1. Risk
2. Relative advantage
3. Relative simplicity
4. Compatibility with current behavior
5. Ease of small-scale trial
6. Ease of communication of benefits

Back 13

Key Factors influencing Adopting Speed (6)

Front 14

1. Make explicit assumption on which the forecast is based
2. Use multiple methods
3. Make contingency plans

Back 14

Keys to Good Forecasting (3)

Front 15

1. Forecasters are subjet to anchoring bias
2. Capacity constraints misinterpreted as forecasts
3. Incentive Pay
4. Unstated but implicit assumptions (awareness & distribution coverage)

Back 15

Sources of Error on Forecasting (4)

Front 16

A better understanding of market and competitive conditions and of what buyers in a given market want and need.

Back 16

Market Knowledge

Front 17

1. Internal Record Systems
2. Marketing Databases
3. Competiting Intelligence Systems
4. Client Contact and Salesforce Automation Systems

Back 17

Market Knowledge Systems to gather Data (4)

Front 18

The design, collection, analysis, and reporting of research intended to gather data pertinent to a particular marketing challenge or situation.

Back 18

Marketing Research Task

Front 19

1. Identify managerial problem and establish research objectives
2. Determine data sources and types of data and research approaches (qualitative or quantitative) required
3. Design research: type of study, data collection approach, sample, etc.
4. Collect data
5. Analyze data
6. Report results to the decision maker

Back 19

Marketing Research Process (6)