Market research

About customer attitudes and behaviours. Based on mathematical and statistical techniques to reduce uncertainty.

MARKET FORECASTS & SALES FORECASTS
Always undertake together
Market forecast carried out first and over longer period

MARKET FORECAST - mainly assessing environmental factors outside org control which affect demand
3 components:

• Economic review - national economy, govt policy, population, GNP
• Specific market research - data about specific markets, forecasts about demand
• Evaluate total market demand for firm & similar products - profitability and market potential

SALES FORECASTS - estimate sales of product...

• in a future period
• at a given price
• using stated promotional materials (which will cost a given amount)

Factors: product life cycle, extent of competitors, performance of major products, sales promotions, categories of customer
Expressed in: volume, value & profit