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19 Cards in this Set
- Front
- Back
The size of the potential market, the likely demand from all actual and potential buyers of a product or product class.
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Market Potential
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The size of the current customers.
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Penetrated Market
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The size of the potential and penetrated markets for the market segments.
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Target Market.
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Prediction of sales.
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Sales forecast
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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.
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Statistical methods
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To directly observe or gather existing data about what real consumers do in the product-market of interest.
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Observation-based Forecasting
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1. Statistical and Quantitative Methods2. Observation3. Surveys or Focus Groups4. Analogy5. Judgment6. Market Tests
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Methods for Estimating Market Potential and Forecasting Sales
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1. Survey of Buyer's Intentions2. Survey of Salesforce Opinion
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Types of Surveys or Focus Groups
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1. Experimental Test Market2. Live Test Market
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Types of Market Tests
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Seeks to explain the adoption of an innovative product or service over time among a group of potential buyers.
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Diffusion of innovation theory
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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.
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Adoption Process
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1. innovators2. Early Adopters3. Early Majority4. Late Majority5. Laggards
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Adopter Categories (5)
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1. Risk2. Relative advantage3. Relative simplicity4. Compatibility with current behavior5. Ease of small-scale trial6. Ease of communication of benefits
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Key Factors influencing Adopting Speed (6)
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1. Make explicit assumption on which the forecast is based2. Use multiple methods3. Make contingency plans
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Keys to Good Forecasting (3)
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1. Forecasters are subjet to anchoring bias2. Capacity constraints misinterpreted as forecasts3. Incentive Pay4. Unstated but implicit assumptions (awareness & distribution coverage)
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Sources of Error on Forecasting (4)
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A better understanding of market and competitive conditions and of what buyers in a given market want and need.
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Market Knowledge
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1. Internal Record Systems2. Marketing Databases3. Competiting Intelligence Systems4. Client Contact and Salesforce Automation Systems
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Market Knowledge Systems to gather Data (4)
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The design, collection, analysis, and reporting of research intended to gather data pertinent to a particular marketing challenge or situation.
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Marketing Research Task
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1. Identify managerial problem and establish research objectives2. Determine data sources and types of data and research approaches (qualitative or quantitative) required3. Design research: type of study, data collection approach, sample, etc.4. Collect data5. Analyze data6. Report results to the decision maker
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Marketing Research Process (6)
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