BUS M 300 Lecture 4 Outline of Last Lecture I Review Slide II What is marketing research III Why do it IV Marketing Research Process Outline of Current Lecture I Review Slide II Why forecast sales III Judgment Approaches to Forecasting Sales Current Lecture Review Slide o Exploratory and causal research o Know the five types of descriptive research and the 3 most common types used o Secondary vs primary data o Validity reliability and representativeness data Why is this important o Random quota and convenience sampling How is it used o What are the benefits and limitations of secondary data Why forecast sales o Must rely on past data to make predictions about the future o No forecast by itself can provide accuracy There is always incomplete data in forecasting You have to pay attention to outside sales even after you ve forecasted Elasticity when a product is elastic consumers are sensitive to the price These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Judgment Approaches to Forecasting Sales o Sales force composite approach Ask sales reps to forecast sales for their areas They have their finger on the pulse of the market but are under pressure to perform well o Buyer surveys Ask consumers or firms about their intentions to buy You can find out what consumers are really thinking in the marketplace but buyers tend to fill out surveys quickly and often not accurately o Manager Surveys Ask the firm s managers to forecast sales for their areas They have a macro view of the market and are more likely to see trends but they are under pressure to perform well Mangers will ultimately use either option one or option two to get this information o All of these work well in smaller businesses Larger businesses will use this as a jumping off point and then find more Quantitative Approaches to Forecasting Sales o Both models rely on historical data to forecast sales so they are extrapolative techniques o Moving average models MAM o Exponential smoothing models ESM ALL FORMULAS WILL BE LOCATED ON THE BACK OF THE EXAM
View Full Document
Unlocking...