Marketing Management
Members Are:-
1. Swati KaushalMBA/15001/132. Shreya Srivastava MBA/15003/133. Ravindra Kumar MBA/15004/13
Birla Institute of Technology
MESRA
Patna Campus
Group No.:- 1
Topic:-
Assessing demand of a product or service:-
At National Level
At Regional Level
At Company level
Demand Assessment
Market Demand:it can be (6 x 5 x 3)
*Source – Marketing Management, Philip Kotler, 14e, Pearson Publication
Demand Assessment
Assessing Current Demand:
Total Market Potential:
It is the maximum sales available to all firm in an industry
during a given period.
Total Market Potential = Potential No. of Buyers
x Average Qty. Purchase by a buyer
x The Price
Demand Assessment
*Source – Marketing Management, Philip Kotler, 14e, Pearson Publication
Assessing Future Demand:
Survey of Buyers’ Intentions
Composite of Sales Force Opinions
Expert Opinion
Past Sales Analysis
Market – Test Method
Demand Assessment
*Source – Marketing Management, Philip Kotler, 14e, Pearson Publication
Survey of Buyers’ Intentions
Forecasting is the art of anticipating what buyer are
likely to do under a given set of conditions.
Because buyer behaviour is so important is so
important, buyers should be surveyed.
Demand Assessment
*Source – Marketing Management, Philip Kotler, 14e, Pearson Publication
Composite of Sales Force Opinions
Its is used when buyer interviewing is impractical
The company may ask its sales representative to
estimate their future sales
Each sales representative estimates how much
current and prospective customer will buy of each of
the company’s products
Demand Assessment
*Source – Marketing Management, Philip Kotler, 14e, Pearson Publication
Expert Opinion:
Companies can also obtain forecast from experts,
including dealers, distributors, suppliers, marketing
consultants, and trade association
Car companies periodically survey dealers for
forecasts of short term demand
Demand Assessment
*Source – Marketing Management, Philip Kotler, 14e, Pearson Publication
Past Sales Analysis:
Sales forecast can be developed on the basis of past
sales
Time – series analysis consist of breaking down past
time series into 4 component :-
Trend
Cycle
Seasonal
Erratic
Demand Assessment
*Source – Marketing Management, Philip Kotler, 14e, Pearson Publication
Market – Test Method:
When buyers do not plan their purchase carefully or
experts are not available or reliable, a direct –
market test is desirable
A direct – market test is especially desirable on
forecasting new product sales or established
product sales in a new distribution channel or
territory
Demand Assessment
*Source – Marketing Management, Philip Kotler, 14e, Pearson Publication
Previous Year Sales Record:-Demand Assessment
*Source – http://www.marutisuzuki.com/, Annual Report 2012, Maruti Suzuki Ltd.
Assessing future Demand:-
Now we forecast the sales of Maruti Suzuki Ltd. By Expert
Opinion forecasting Method.
As the method says that dealers, distributors, suppliers,
marketing consultants, and trade association are
surveyed.
We all three members visited
the Maruti Suzuki’s show room i.e.
KARLO AUTOMOBILE in the
Boring Road, Patna .
Demand Assessment
We got these data:-
2008
2009
2010
2011
2012
(Exp
ecte
d)20
130
200,000400,000600,000800,000
1,000,0001,200,0001,400,000
764,842 792,167
1,018,365
1,271,0051,133,695
1,233,564
At Country Level
Demand Assessment
*Source –http://www.marutisuzuki.com/, Annual Report 2012, And Personal Interview
We got these data (Monthly Sales):-
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Expected Dec-2013
Expected Jan-2014
Expected Feb-2014
Expected Mar-2014
97,548
94,235
102,345
101,450
103,000
103,108
105,087
107,099
104,562
103,215
105,346
106,569
At Country Level
Demand Assessment
*Source – News Paper, Times of India, Dated: 6th November 2013
We got these data (Monthly Sales):-
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Expected Dec-2013
Expected Jan-2014
Expected Feb-2014
Expected Mar-2014
956
899
1203
954
1024
1145
1232
1300
1250
1266
1288
1226
145
149
224
189
289
302
326
426
399
385
398
378
2
2
3
5
Karlo Showroom Sales Volume Sales Volume in Patna
Demand Assessment
*Source – Sales volume statement, Vaus Automobile, Patna, Times of India Dt: 6 th Nov 2013,Personal Interview