Marketing measurement
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Transcript of Marketing measurement
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PRESENTATION ON
COMPETITION ANALYSIS
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MARKETING
MEASUREMENT
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About the future we can be certain of only 3 things:
1.It cannot be known with certainity!2.It will be different from what it is
now!3. It will be different from what we
expect it to be!
BY: PETER DRUCKER
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MEASURING MARKET DEMAND
FORECASTING COMPANY
SALES
MEASURING CURRENT MARKET DEMAND
FORECASTING FUTURE MARKET DEMAND
MEASURING CURRENT
TOTAL DEMAND
MEASURING CURRENT
AREA DEMAND
TWIN TASKS INVOLVED
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IDENTIFYING TRENDS
MARKETING PLANS
PRICE ANALYSIS
SWOT ANALYSIS
LOCATION ANALYSIS
COMPETITIVE ANALYSIS
TARGET ANALYSIS
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WHAT IS THE MAIN REASON FOR
CONDUCTING MARKETING RESEARCH???
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OTHER BENEFITS OF DOING MARKETING RESEARCH…………..
* TO FIND OUT CREDIBILITY OF THE PRODUCT IN THE MARKET * SALES PATTERN OF THE PRODUCT * BUYER’S ACCEPTANCE LEVEL * FORECAST FUTURE SALES
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WHICH MARKET TO MEASURE???
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POTENTIAL MARKET
AVAILABLE
MARKET
QUALIFIED
AVAILALLE
MARKET
TARGET MARKET
PENETRATED MARKET
TYPES OF MARKETS
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TERMS USED IN SALES FORCASTING
1. MARKET POTENTIAL {INDUSTRY PO:}2. COMPANY POTENTIAL {SALES PO:} 3. MARKET DEMAND {INDUSTRY DE:}4. COMPANY DEMAND {COMPANY SALES POSSIBILITIES}5. MARKET FORECAST {INDUSTRY FR:} 6. COMPANY FORECAST {SALES FR:}
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MARKET POTENTIAL“Total possible sales by all firms selling the same
product in the given market , assuming that ideal marketing effort is made.”
COMPANY POTENTIAL“Refers to a part of market potential; the maximum sales that
an individual firm can achieve on a given market, again under ideal conditions and on the assumption that ideal marketing effort is being made.”
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MARKET DEMAND“ Refers to that portion of market potential that
is achievable under existing conditions.”
COMPANY DEMAND“Refers to that portion of company potential
that is achievable under existing conditions.”
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MARKET FORECAST“It is narrower in scope than market
demand. Refers to that part of market demand that will materialise with the level of marketing effort the industry will put in during the period of forecast.”
COMPANY FORECAST“Refers to that portion of company demand,
which the company actually expects with the chosen marketing effort.”
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PERIOD RANGE OF DEMAND/ SALES FORECASTS:
It facilitates investment decisions at a time of
starting a new industrialised unit or
while attempting expansion or
diversification.
It is used for projecting cash flow of the enterprise and for planning various
marketing activities like advertising , warehousing
etc.
LONG RANGE FORECAST
SHORT RANGE FORECAST
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Role played by sales forecasting:
Guarantees effective control.Sound decisions on expansion or
contraction.Judicious resources allocation.Helps in making sound personnel
decisions.Aids in performance evaluation.It is the foundation for budgeting.
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Factors governing sales forecasting:
Prevailing economic conditions
Prevailing business conditions
Sociological conditions
Psychological conditions
Competitive conditions
Internal conditions
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STEPS IN SALES FORECASTING:
7. Check and recheck
the deductions
2. Divide the company
products into homogeneous
groups
3. Determine factors
affecting sales of
each product
4. Choose the
forecasting methods
5. Gather the
available data
8. Make assumptions
regarding other factors
10. Apply the forecasts to
company operations
1.Determine the purposes
for which forecasts are
used
9. Convert deductions and
assumptions into forecasts
6. Analyse the data
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METHODS USED IN SALES
FORECASTING
The delphi method
Sales force composite
method
Survey of expert’s opinionJury
method/executive opinion method
Market survey method
Analytical and statistical methods
User expectation method/end use
method
Test marketing method
Substitution/replacement
method
Market share method
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JURY METHOD/ EXECUTIVE OPINION METHOD
TOTALLY BASED ON JUDGEMENT.
TWO ASPECTS
TOP JURY METHOD
PERCOLATED JURY METHOD
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Judgement based method. Opinion of experts in the
concerned field , inside or outside the organisation , are approached .
More useful for developing total industry forecast rather than company sales forecast.
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The Delphi method
It is also a kind of survey of expert’s opinion but in this method experts are interrogated by a sequence of questionnaires.
Used for working out broad- based , futuristic estimates, rather than sales forecast.
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Sales force composite Sales force composite methodmethod
Salesman develops the forecast for his respective territory.
Territory wise forecasts are then consolidated at branch/area/region level.
Finally aggregate of all these forecasts are taken as final forecast.
JUDGEMENT BASED METHOD
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USER EXPECTATION METHOD Also called end-use method/ survey of buyers’ intentions. Users of the product under forecasting are listed. Their individual likely demand is ascertained. From the above collected data, demand forecast for the product is consolidated.
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MARKET SHARE METHOD
Key factor is ‘planned market share of the firm.’
First of all firm works out the ‘INDUSTRY FORECAST’ and then applies ‘market share factor’ and arrives at the ‘COMPANY FORECAST’.
Market share factor is developed on the basis of past trends, company’s present competitive position, it’s plans for the future, brand preference etc.
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Normally used to estimate demand of new-products.
Demand for existing product is forecasted.
Based on that, an idea of the demand for the new product is gained.
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TEST MARKETING METHOD:USED FOR THE LAUNCH OF NEW PRODUCT.
IN THIS METHOD, new product is launched and marketed in a few selected ‘TEST’ cities/ towns/ territories.
Finally these ‘TEST-MARKETS’ are considered as ‘FINAL - MARKET’.
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ANALYTICAL AND
STATISTICAL METHODS
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SIMPLE - PROJECTION METHOD.
EXTRAPOLATION.MOVING
AVERAGES. EXPONENTIAL
SMOOTHING. TIME - SERIES
ANALYSIS.REGRESION
ANALYSIS.
YEARS
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HOW IN YOUR
OPINION THE
FORECASTS CAN
BE IMPROVED
??????
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COMBINATION OF METHODS:
1.It would give better insight into the situation.
2.Enables cross – checking.3.Minimize risks involved in the
forecasts.4.Will help the forecaster to probe
deeply the reasons for the variations between the forecasts arrived at by different methods.
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Acc to MR MICHEAL PORTER: ‘”competitive advantage is a function of either providing comparable
buyer value more efficiently than
competitors(LOW COST) and performing activities
at comparable but in unique ways that
create more buyer value than competitors and hence , command a
premium price (DIFFERENTIATION) ”
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FIVE FORCES THAT SHAPE COMPETITION IN AN
INDUSTRY
RIVALRY AMONG EXISTING
COMPETITORS
THREAT OF NEW ENTRANTS
BARGAINING POWER OF
BUYERS
THREAT OF SUBSTITUTE PRODUCTS
BARGANING POWER OF SUPPLIERS
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TYPES OF COMPETITION
1. BRAND COMPETITION
2. PRODUCT TYPE COMPETITION
3. NEED BASED PRIORITY COMPETITION
4. SUBSTITUTION COMPETITION
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WHY COMPETITION
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SIGNIFICANCE OF COMPETITIVE ADVANTAGE
IT IS THE HEART OF MARKETING STRATEGY
IT IS THE ANTIDOTE FOR COMPETITORS SUPERIORITY
IT IS THE ROUTE TO THE LONG TERM MARKETING
SUCCESS
IT SUPPORTS ENVIRONMENT ANALYSIS
IT MAKES PROFIT A SECONDARY PRODUCT
IT MAKES THE UNIT TO REMAIN COMPETITIVE
EVERGREEN
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SOURCES OF COMPETITIVE ADVANTAGE:
1.MARKETING FACTORS.
2.PRODUCTION FACTORS.
3.RESEARCH & DEVELOPMENT& ENGINEERING FACTORS
4.PERSONNEL & EXPERTISE FACTORS.
5. CORPORATE RESOURCES & FINANCIAL FACTORS.
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WHAT THE COMPANY SHOULD KNOW
ABOUT KEY COMPETITOR
S?????
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1.FINANCIAL SIZE AND STRENGHT. 2.OBJECTIVES AND CAPABILITIES.
3.KEY COMPETITION EVALUATION.4. PREDICTING COMPETITOR’S FUTURE
ACTION.
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1.THROUGH INTEGRATION
PROCESS.
2.THROUGH RESEARCH AND DEVELOPMENT
ACTIVITIES.
3.THROUGH ALLIANCES.
4.THROUGH MERGERS.
5.THROUGH CORE-COMPETENCY.
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THANKS!!