marketing essentials

Marketing Essentials

Pratibha GuptaIIPM-BBA 8.10.10

Introduction Meaning and Pervasiveness of Marketing – Marketing deals with identifying and

meeting human and social needs. Marketing is “Meeting needs profitably”

Marketing is an organizational function and a set of process for creating ,communicating an delivering value to customers and for managing customers relationships in ways that benefit the organization and its stake-holders.

Nature and Scope of marketing Here we cover all the points which are

included in complete Marketing Process.

Exchange and Transaction What is Marketed ? Who Markets ?

Exchange an Transaction Exchange is the process of obtaining a

desired product from someone by offering something in return

Transaction is trade of values between two or more parties, this is the end stage of Exchange.

What is Marketed (1) Goods (2) Services (3) Events (4) Experience (5) Persons (6) Places (7) Properties (8) Organizations (9) Information (10) Ideas

Who Markets Marketer

Marketer is someone who seeks response( attention, a purchase, a vote, a donation) from another party called Prospect.

Marketer are skilled in stimulating demand for a company’s product

They have task – “demand management”

demand states are possible- Negative demand – (A) channels Non existing demand – Noise absorber Latent demand – Environment regulator declining demand – Fashion apparel Irregular demand - medicine Full demand – FMCG Overfull demand – Movie ticket for 3 idiots Unwholesome demand - Drugs

Market Marketers use the term “Market” to cover

various grouping of customer. As – Resources market Manufacturer market Intermediary market Consumer market Government market

Key Customer Markets- (a) Consumer Markets- where goods goes to

the user (b) Business Markets- Goods are sold to

industries as raw materials (c) Global Markets- selling goods out of

parental country (d) Nonprofit and Governmental Markets-

Customers have limited purchasing power

Market place – Physical Place Market space – digital Space Meta-Market – different interrelated

businesses collectively known as Meta- market

How Businesses and Marketing (In India) are changing Changing Technology Deregulation Privatization Customer Empowerment Customization Heightened competition Industry convergence Retail Transformation Disintermediation

Marketing Philosophies Production concept Product concept Selling concept Marketing concept

The Holistic Marketing Concept It takes care of all the dimension which

comes in between to the marketing process in any direct or indirect manner.

Holistic Marketing recognizes that “everything matters”

Holistic Marketing concept is based on the development, design, an implementation of marketing programs, processes and activities that recognizes their breadth and interdependencies.

Holistic Marketing Relationship Marketing

Customer/ Channel/ Partners Integrate Marketing

Product/ Price/ Place/ Promotion Internal Marketing

Marketing department/ Senior Manager/ Other department

Social Responsible Marketing Ethics/ Environment/ Legal/ Community

Social marketing concept holds that the organization’s task is to determine the needs, wants and interests of target markets and to deliver desired satisfaction more effectively and efficiently than competitors in a way that preserve or enhance the consumer’s and society’s well- being

Lecture

Core concept of marketing There are 9 core concept or bricks which

make the complete structure of marketing.

1, Needs, wants and demand Needs are the basic human requirement Needs become wants when they are

directed to specific objects that might satisfy the need.

Demands are wants for specific products backed by an ability to pay.

Marketers create needs ??

2, Target markets, positioning and segmentation Segment is group of people share same

requirement and profile. Marketer select segment according to

highest opportunity, ability to serve and getting highest returns.

Stand of offering in target market’s mind set becomes the positioning.

3, Offering and Brands Set of benefit put by marketer to fulfill

need of marketer becomes – offering Brand is an offering from known source

4, Value and Satisfaction Value is perceived tangible and intangible

benefits and cost to customer. value can be seen primarily as combination of quality, service and price known as “ customer value triad”.

Judgement by customer comparing expectation with the product and service sactual performances.

5, Marketing channels Source to reach to target market – A, Communication channel B, Distribution channel C, Service channel

6, Supply chain Supply chain describes channel from raw

material to component to final product that are carried to final consumer.

7, Competition Includes all the actual and potential rival

offerings and substitutes that a buyer might consider

8, Marketing environment Surrounding in which marketer works It is of 2 types – A, Macro environment B, Micro environment

9, Marketing planning Logical process that a company follow to

fulfill need of target customers in profitable manner.

What is “Marketing Environment” Factors, that surrounds, and have impact

on whole marketing process directly or indirectly, creates Marketing Environment.

Why scan environment

Marketing Environment

Internal Environmental Factors –

Factors present inside the company Affect Individual company Under managerial control E.g.

Human Resources Understanding between departments

External Environment Factors Micro Environment-

Present outside of the company Affect Individual company Under Managerial controlIncludes A, Competitors B, Suppliers / distributors C, Public Pressure Group D, Customers

Macro Environment- Present Outside of company Out of managerial control Affect not only individual company but all

industryIncludes 1, Economic 2, demographic 3, Technological 4, Socio-Culture 5, Political / Legal 6, Global

1, Economic Forces Income-

Ability to spend Product on which customer will spend vary Dual income families have high demand for life-style

and luxury products

Inflation- An increase in price without corresponding increase

in wages. Decrease purchase power Should be countered by assuring product and

services are produced effectively

Recession – period of economic activity when income, production,

and employment tend to fall.

Interest Rate – Higher interest rate decrease new business

opportunities and vice versa. Lower interest rate is one sure way to spur consumer

purchase

Exchange Rate – Export is more profitable when the currency of the

export country is weaker than the currency of importing country.

2, Technological Factors The economy’s growth rate is affected by

how many major new technologies are discovered.

Marketers should monitor – Accelerating pace of change Unlimited opportunities for innovations Varying R&D budgets Increased regulation of technical change

3, Socio-Cultural Factors Values Time-Starved Customers Multiple Lifestyles The changing structures of families

4, Demographic Factors World wide population growth Population age mix Educational group Household pattern Geographical shift in population

5, Political/Legal Environment Composed of laws, political agencies an

pressure groups

E.g. Ban on selected products Recycling law American subsidiaries Singur – TATA case

6, Nature Environment Shortage of raw material Increase energy cost Anti-pollution pressure Changing role of government

Competitive Environment The competitive environment consists the

number of competitors a company faces, the relative size of competitors, and the degree of interdependence within the industry.

Competitor may offer same product to cater customer need or can come with improved or complete new product.

So, competitors – in terms of pricing, new product developed, service offered, and the like – represent an environmental force that managers must monitor and to which they must be prepared to respond

Competition may get intense because of (A) Globalization (B) Technology improvement (C) Changed buying behavior / attitude

StakeHolder

Stake-Holders – Any constituencies in the organization’s environment

that are affected by the organization’s decision .these groups have a stake in or are significantly influenced by what the organization does. In turn these group can influence organizations

The more obvious and secure relationship manament share with stake holders, the more influence manager will have on organizations outcome.

Because relationship with stake holders Improve predictability of environmental

changes More successful innovations

How can these relationships be manage?

1, identify stakeholders 2, Identify there interest with organization 3, Identify how critical each stake holder is and

how uncertain the external environment is.

STP S – Segmentation T – Target P - Positioning

S - SegmentationA market segment consists group of

customers who share a similar set of needs and wants.

Levels of market segment Mass marketing Segmentation Niche marketing Local marketing Customization

Basis for Segmentation Geographic Demographic Psychographic Behavioral

Geographic Segmentation Call for dividing the market into different

geographical units such as nations, states, regions, countries, cities or neighborhood.

The company can operate in one or few areas, or operate in all but pay attention to local variation.

Demographic Segmentation Age and life stage Gender Income Generation Social class

Psychographic Segmentation Psychographics is the science of using

psychology and demographics to better understanding of customer.

Buyers are divided on basis of – Personality trait Lifestyle Value

Behavioral Segmentation Decision roles Behavioral variables

Decision Roles Initiators Influencers Deciders Buyers Users

Behavioral Variables Occasions Benefits User status Usage rate Buyer readiness stage Loyalty status Attitude

Market segment must be Measurable Substantial Accessible Differentiable Actionable

T - Targeting Single segment concentration Selective specialization Product specialization Market specialization Full market coverage

61

What is CRM CRM is a process of managing detailed

information about individual customers and carefully managing all customer “Touch Points” to maximize customer loyalty.

62

Why do we require Loyal Customers? Acquiring new customer can cost five

times more than the cost involved in retaining a current customer.

Higher the no. of Loyal Customers = Higher profit and less efforts

Why will customer be loyal? When we will provide him a profitable

deal.

63

Total Customer Satisfaction Satisfaction is a person’s feeling of

pleasure or disappointment resulting from comparing a product’s perceived performance ( or outcome ) in relation to his or her expectations.

64

If performance falls short, customer is dissatisfied

If performance exceeds expectations, customer is highly satisfied or delighted.

65

Building customer relationship Relationship building process has 4 stages

– 1, Identify 2, Differentiate 3, Interact 4, Customize

66

Identify This step requires the company to locate

and contact a large no of its customers directly and know as much detail about them as possible. This includes their names, addresses, phone no., account details, habits, preferences etc.

67

Every interaction with the customer through any channel should be seen as an opportunity to learn about them and this knowledge has to be used to serve them better.

68

Differentiate Customer can be differentiated on the

basis of the value they represent and also on their needs.

The more valuable customers are, the more the company should be interested in retaining them.

69

Interact The purpose of interaction is to learn more

about customers starting with more valuable customers.

Can be done while customer make purchase, use service or even when they make complain, through formal surveys, telephone interaction or self service channel like web, call centers or ATM.

70

Customize Customization is done on the basis of what

customer has indicated during his interaction, it improves the ability to fit the product and service to this customers exact need.

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society

There are four main applications of consumer behavior The most obvious is for marketing strategy—i.e.,

for making better marketing campaigns A second application is public policy Third application which is Social marketing

involves getting ideas across to consumers rather than selling something

As a final benefit, studying consumer behavior should make us better consumers.

Why do people shop?

1.Personal motives 1a, Role playing 1b, Diversion 1c, Self-Gratification 1d, Learning about new trends 1e, Physical activity 1f, Sensory stimulation

2,Social motives 2a, Social experience outside home 2b, Communication 2c, Peer group attraction 2d, Status and authority 2e, Pleasure bargaining

Factors affecting consumers decision making 1,Demographic

1a, Gender 1b, Age 1c, Occupation 1d, Education 1e, Family size 1f, Income

2, Psychological factor 2a, Motives 2b, Perception 2c, Learning 2d, Attitude 2e, Personality

3, Environmental factors 3a, Physical environment 3b, Social environment 3c, Sub-Culture, Social class

4, Life-style 4a, Activities and interest 4b, Nature of occupation 4c, Availability of leisure

Consumer decision process Need recognition Information search Evaluation of alternatives Purchase decision Post-purchase decision

Marketing Research - Formal studies of specific problems and

opportunities. - Marketing Research is the systematic

design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company.

Types of marketing research –

Ad-hoc research – focused on specific marketing problem and collect data at one point in time from one sample of respondents

Continuous research interview – The same respondents are interviewed repeatedly. Informations are gathered from these respondents repeatedly ,thus it is possible to track changes within the same set of audience over a period of time

Marketing Research process

Developing the research plan Cost Data source

Primary Secondary

Research approach Observational research Focus-Group research Survey research Experimental research

Research instruments Questionnaire Mechanical Instruments

Sampling Plan Sampling Unit – Who is to be surveyed Sampling Size – How many ppl shd b surveyed Sampling procedure – How shd the

respondents be chosen

Contact method Mail questionnaire Telephone interview Personal interview

Arranged interview Intercept interview

Lecture

Product Life Cycle Introduction – a period of slow sales

growth as the product is introduced in the market. Profits are non-existent because of heavy expenses on product introduction

Growth – a period of rapid market acceptance and substantial profit improvement.

Maturity – a slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits stabilize or decline because of increased competition.

Decline – sales shows a downward drift and profit erode.

New product development Categories of New products – 1, New – to – the world 2, New Product Line 3, Addition to existing Product line 4, Improvement and revisions of existing

product 5, Repositioning 6, Cost reductions.

Steps for New Product Development Idea generation Idea screening Concept development and testing Marketing strategy development Business analysis Product development Market testing Commercialization

Product A Product is anything that can be offered

to market to satisfy a want or need.

Product Levels: Core Benefit Basic Product Expected Product Augmented Product Potential Product

Core benefit – Warmth Basic Product – Sweater Expected Product – Soft, Dark Colour,

Sweater Augmented Product – Free scratch card Potential Product – Shawl with 50%

discount

Product Classification A, Durability and Tangibility B, Consumer goods classification C, Industrial goods classification

A, Durability and Tangibility Nondurable Goods – Beer, Soap etc. Durable Goods – House, car Service – Intangible, inseparable, variable

and perishable. Eg. Hair cut, appliance repair.

Consumer Goods Classification. Convenience goods Shopping goods Specialty goods Unsought goods.

Industrial Goods Classification Material and Parts Capital Item Supplies and business services

Product System Group of diverse but related items that

function in a compatible manner.

Product mix Set of all products and items a particular

seller offers for sale. A product mix consist various product line

Product width Product length Product depth Consistency

Branding and Packaging Branding Co-Branding Ingredient Branding

Packaging All the activities of designing and

producing the container for a product Levels -

Primary Secondary Shipping

Benefits Convenience Promotional value Styling Self service Consumer affluence Company and brand image Innovation apportunity

Labeling Identify the product Grade the product Describe usage and method Describe ingredients Handling process

Pricing methods Mark up pricing Target-return pricing Perceived value pricing Value pricing Going rate pricing Auction type pricing

Pricing strategies Geographical pricing Price discount and allowances Promotional pricing Differentiated pricing Product mix pricing

Geographical pricing Barter Compensation deal Buy back agreement offset

Price Discount and Allowances Cash discount Quantity discount Functional discount Seasonal discount allowance

Promotional Pricing Loss-Leader pricing Special-Event pricing Cash- rebates Low interest financing Warranties and service contracts Psychological discount

Differentiated pricing Customer-segment pricing Product form pricing Image pricing Channel pricing Location pricing Time pricing

Product mix pricing Product line pricing Optional feature pricing Captive product pricing Two-Part pricing By-Product pricing Product- bundling pricing

Promotion Marketing communication are the means

by which firms attempt to inform, persuade, and remind consumers – directly or indirectly – about the product and brands that they sell.

Marketing communication represents the voice of the brand.

Marketing communication mix consist of six major models of communication –

Advertising Sales promotion Events and experiences Public relation and Publicity Direct marketing Personal selling

Advertising Used to build up long term image for a

product Effectively reach geographically disperse

buyers Pervasive – can be repeated several times Amplifies expressiveness – can be

dramatized Impersonality monologue

Sales promotion Give short run effect. Communication Incentive invitation

Public relations and publicity High credibility Dramatization Ability to catch buyers off guard

Events and experiences Relevant – involvement of customers Implicit – more of an indirect “soft sell”

Direct marketing Customized Up-to –date interactive

Personal selling Personal interaction Cultivation – personal relationship springs

up response

Managing marketing communication Mission Money Message Media Measurement

Mission Setting marketing communication goal

Money Stage in PLC Market share and consumer base Competition Product sustainability

Message Message generation Message evaluation Message execution Social responsibility review

Media Reach, frequency, impact Major media type Specific media vehicle Media timing Geographical media allocation

Measurement Communication impact Sales impact

Guerrilla marketing Also known as attack and ambush marketing,

guerrilla marketing is a type of promotional marketing that incorporates a series of creative and strategic techniques used to build and maintain public awareness surrounding a person, place, product, or event. guerrilla marketing utilizes the power of social interactions to execute non-traditional marketing campaigns that drive sales, increase name awareness and create long-term buzz around a specific business

guerrilla marketing is used by many marketing, advertising, public relations and promotional event marketing agencies.

Guerrilla, marketing became popular in the 1970s

Strategies Attack marketing uses a number of

different strategies to create memorable interactions between businesses and consumers, including use of:

Promotional Staff to interact with consumers

Non-traditional marketing techniques

Digital Marketing Digital Marketing is the promoting of

brands using all forms of digital advertising channels to reach consumers. This now includes Television, Radio, Internet, mobile and any other form of digital media

Digital Marketing – Pull vs. Push There are 2 different forms of digital

marketing

Pull Pull digital marketing technologies involve

the user having to seek out and directly select (or pull) the content, often via web search. Web site/blogs and streaming media (audio and video) are good examples of this. In each of these examples, users have a specific link (URL) to view the content

Push Push digital marketing technologies involve both

the marketer (creator of the message) as well as the recipients (the user). Email, SMS, RSS are examples of push digital marketing. In each of these examples, the marketer has to send (push) the messages to the users (subscribers) in order for the message to be received. In the case of RSS, content is actually pulled on a periodic basis (polling), thus simulating a push

Green Marketing According to the American Marketing

Association, green marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising

Eg . Nerolac paints, Vediocon New Delhi, capital of India, was being

polluted at a very fast pace until Supreme Court of India forced a change to alternative fuels. In 2002, a directive was issued to completely adopt CNG in all public transport systems to curb pollution.

Social Marketing Social marketing is the systematic

application of marketing, along with other concepts and techniques, to achieve specific behavioral goals for a social good. Social marketing can be applied to promote merit goods, or to make a society avoid demerit goods and thus to promote society's well being as a whole.

For example, this may include asking people not to smoke in public areas, asking them to use seat belts, or prompting to make them follow speed limits

The primary aim of social marketing is "social good", while in "commercial marketing" the aim is primarily "financial". This does not mean that commercial marketers can not contribute to achievement of social good

History Social marketing began as a formal

discipline in 1971, with the publication of "Social Marketing: An Approach to Planned Social Change" in the Journal of Marketing by marketing experts Philip Kotler and Gerald Zaltman.

Viral Marketing Viral marketing and viral advertising,

(buzzwords), refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of virus or computer viruses.

It can be word-of-mouth delivered or enhanced by the network effects of the Internet. Viral promotions may take the form of video clips, interactive Flash games, advergames, ebooks, brandable software, images, or even text messages.

History Among the first to write about viral marketing on

the Internet was media critic Douglas Rushkoff in his 1994 book . The assumption is that if such an advertisement reaches a "susceptible" user, that user will become "infected" (i.e., accept the idea) and will then go on to share the idea with others "infecting them," in the viral analogy's terms. As long as each infected user shares the idea with more than one susceptible user on average

the number of infected users will grow according to a , whose initial segment appears exponential.

Examples Early in its existence (perhaps between

1988 and 1992), the television show Mystery Science Theater 3000 had limited distribution. The producers encouraged viewers to make copies of the show on video tapes and give them to friends in order to expand viewership and increase demand for the fledgling Comedy Central network. During this period the closing credits included the words "Keep circulating the tapes

Methods Internet Search Engines & Blogs Target Marketing Web Services Social Media Interconnectivity Industry specific organization contributions Television & Radio

Interactive marketing Interactive Marketing refers to the

evolving trend in marketing whereby marketing has moved from a transaction-based effort to a conversation.

The definition of interactive marketing comes from John Deighton at Harvard, who says interactive marketing is the ability to address the customer, remember what the customer says and address the customer again in a way that illustrates that we remember what the customer has told us

Interactive marketing is not synonymous with online marketing, although interactive marketing processes are facilitated by internet technology. The ability to remember what the customer has said is made easier when we can collect customer information online and we can communicate with our customer more easily using the speed of the internet

Interactive Marketing allows customers to participate in a Brand's process to build its image in a certain market or target group's minds. Thanks to the consumer's ability to "interrupt" a Brand's communications and to complement or modify it's messages to fit his or her own and personal perception, the process of building the Brand itself is crowd sourced among its main target group, with or without the Brand Manager's intervention

B2B Marketing Business Marketing is the practice of

individuals, or organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations

Business marketing vs. consumer marketing business marketing generally entails

shorter and more direct channels of distribution.

the negotiation process between the buyer and seller is more personal in business marketing

A B2B sale is to an organization. And in that simple distinction lies a web of complications that differ because of the organizational structure.

Bottom of the pyramid marketing Making the products available to the poor consumers with incomes less than $2 per day can

be a viable and a profitable segment to market for MNCs.

Companies have drafted different strategies to penetrate in the bottom of pyramid as – Keep your product offer small Cut the frills Lift their economy

Political marketing

Morph marketing As because many new products everyday

entering into the market survival and that too with generating required profit is becoming a tough matter for companies.

So, product differentiation is the way everyone is looking for

Companies are adding services with their products.

This approach is known as morph marketing.

Marketing Information System MIS consist of people, equipments, and

procedure to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. A marketing information system is developed from – (A) Internal company record (B) Marketing intelligence activities (C) Marketing research

(A) Internal company record Gives reports on orders, sales, prices,

costs, inventory levels, receivables, payables and so on.

Types are- Order-to-payment cycle Sales information system Data base, data mining, data warehousing

(B) Marketing intelligence activities Marketing Intelligence system is a set of

procedures and sources managers use to obtain everyday information about development in marketing environment.

Internal record system supplies result-data, but the marketing intelligence system supplies happening data.

Steps to improve marketing intelligence A company can train and motivate the

sales force to spot and report new developments

A company can motivate distributors, retailers, and other intermediaries to pass along important intelligence.

A company can network externally A company can set up customer advisory

panel

A company can take advantage of government data resources

A company can purchase information from outside suppliers

A company can use online customers feedback systems to collect competitive intelligence

(C) Marketing Research Types of marketing research –

Ad-hoc research – focused on specific marketing problem and collect data at one point in time from one sample of respondents

Continuous research interview – The same respondents are interviewed repeatedly. Informations are gathered from these respondents repeatedly ,thus it is possible to track changes within the same set of audience over a period of time

Marketing Research - Formal studies of specific problems and

opportunities. - Marketing Research is the systematic

design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company.

Marketing Research process

Developing the research plan Cost Data source

Primary Secondary

Research approach Observational research Focus-Group research Survey research Experimental research

Research instruments Questionnaire Mechanical Instruments

Sampling Plan Sampling Unit – Who is to be surveyed Sampling Size – How many ppl shd b surveyed Sampling procedure – How shd the

respondents be chosen

Contact method Mail questionnaire Telephone interview Personal interview

Arranged interview Intercept interview

Sales Forecasting Sales potentials are quantitative estimates

of the maximum possible sales opportunities present in particular market segments open to a specified company selling a good or service during a stated future period.

The estimate for sales potentials indicates how much a company could sell if it had all the necessary resources and desire to use them,

Sales forecast is related different estimate – it indicates how much a company with a given amount of resources can sell if it implement a particular marketing program

Sales Forecasting method Jury of executive opinion Poll of sales force opinion Project of post sales

Time series analysis Exponential smoothing Evaluation of past sales projection methods

Survey of customers’ buying plans Regression Analysis

Jury of executive opinion Steps –

1, High ranking executives estimate probable sales.

2, Average estimate is calculated.

Merits – 1, Quick and easy way 2, Way to pool experience and judgment. 3, Used for young company 4, Used when adequate sales and marketing

statistics are missing

Demerits 1, Based on opinion, factual evidence is

sketchy 2, Adds to the work load of key executives 3, difficult to breakdown into estimates of

probable sales by products, by time intervals, by customers, and so on.

Poll of sales force opinion Individual sales personnel forecast for

their territories; then individual forecasts are combined and modified, as management thinks is necessary, and form company’s sales forecast.

Merits 1, Greater confidence in sales people 2, Easy to breakdown according to product,

territories, customers, middleman and sales force.

Demerits – Tend to be overly optimistic or overly

pessimistic about sales prospect Unaware of broad change taking place in

economy and of trend in business Personnel deliberately underestimate so that

quotas are reached more easily.

Projection of past sales

Next year’s sales =

This year’s sales This year’s sales X Last year’s sales

Time series analysis – This procedure involves isolating and measuring four chief types of sales variation.

Long term trends Cyclical changes Seasonal variations Irregular fluctuation

Exponential Smoothing

Next year’s sales = (This year’s sales) + (1- )(this year’s forecast)

Demerits Sales history is the sole factor influencing

future sales No allowance is made for significant

changes made by marketing program or by its competitors.

Nor is allowance made for sharp and rapid upswing or downturns in business activity

Survey of customers’ buying plans Mainly used in B2B.

Regression Analysis Determines and measures the association

between company sales and other variables.

Major steps are – Identify variables causally related to company

sales Determine or estimate the value of these

variables related to sales Derive the sales forecast from these customers