MKTG 301 Demand

002y what people say they will do i definitely would

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Unformatted text preview: mand forecasts: • What people have done – extrapolation (time series analysis) – statistical demand analysis • What people say they will do – surveys • What people actually do – laboratory markets – test markets Trend Analysis sales sales time t* time t* Statistical Demand Analysis # cans of soda = -140 + 6X – .002Y What people say they will do ____ I definitely would not buy ____ I might buy ____ I definitely would buy 100 actual % purchasing 0 definitely not might definitely will Simulated markets Laboratory market: • respondents given $20 • complete initial survey (perceptions & preference) • shown advertising for competing brands & new brand • enter simulated retail store with, say, deodorants • spend any amount of money from $0 to $20 • samples given to those who do not buy new product • "purchasers" vs. "free samples" recorded • follow-up telephone interview Test markets Actual test market: • Product is actually "launched" in a limited way • What types of cities are chosen? • What is the benefit of a test market? • For what types of goods are test markets not feasible? • What are drawbacks to test marketing? Key Points or "Take Aways" • Company can grow by expanding market size or stealing market share • Size of the potential market depends on how broa...
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