The following are the essential data requirements for

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The following are the essential data requirements for effective sales forecasting. 1. Industry sales for the past few years; product-wise, territory-wise, customer class-wise, month-wise and dealer-wise. 2. Past sale of the company 3. Production data-industry and company. 4. Market share of each firm in the industry with break-up of sales by markets/territories/channel types. 5. Sales of substitute products 6. Use pattern of the product. 7. Economic, technological and environmental data relevant for the product’s consumption. 8. Strengths and weaknesses of the firm in the market. LIMITATIONS OF SALES FORECAST It is subject to certain limitations, which hamper the accuracy of sales forecasting. The limitations are offered by factors such as fashion, absence of sales history, growth elements and psychological behavioural variables of the market. Fashion, or style affects the sales. It is difficult to say how for the market will adopt the new fashion and for how long. If the fashion becomes popular, large sales may result, otherwise the sales may be very small. Annamalai University
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66 Absence of sales history also creates difficulty in accurate forecasting in case of those firms which base their forecasts on the past sales trends. In the absence of past sales history the sales forecasts may be based on mere guess work. Anticipated growth rate for the product can be calculated precisely, because the rate of growth never remains uniform, the same rate may rather continue, decline or remain stationary. Psychological behavioural variables prevailing in the market are difficult to measure for any change in the consumer attitude may upset the entire sales forecast. Therefore, while preparing sales forecasting, due consideration should be given to these limitation by the marketing executives. MODEL QUESTIONS 1. What is market segmentation? What is the rational behind market segmentation? 2. What are the benefits of market segmentation? Identify the requirements for effective market segmentation. 3. Distinguish between the base for segmenting consumer market and industrial markets? 4. Explain the steps involved in the segmentation process. 5. What is market targeting? As a marketer of two-wheeler, how would you select the target segment? 6. Explain target market strategies with illustrations. 7. What is product positioning? Distinguish between product positioning and product repositioning? 8. Explain the features of a good product positioning techniques. 9. What do you mean by buyer behaviour? Discuss different theories of buyer behaviour. 10. Explain the factors influencing buyer behaviour. 11. How woudl you classify consumer goods on the basis of buying habits? Express the impact of your classification on the marketer. 12. Narrate the buying process.
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