Chapter 3 - Forecasting and Demand Measurement
Chapter 3 - Forecasting and Demand Measurement
DEMAND
MEASUREMENT
Forecast and Demand Measurement
• How can we measure market demand?
• Potential market
• Available market
• Target market
• Penetrated market
•
Market Demand Functions
A Vocabulary for
Demand Measurement
Market Demand
Market Forecast
Market Potential
Company Demand
Company Sales Forecast
Company Sales Potential
Estimating Current Demand:
Total Market Potential
• Calculations
• Multiply potential number of buyers by average quantity each
purchases times price
• Chain-ratio method
Estimating Current Demand:
Area Market Potential
Market-Buildup Method
Multiple factor Index Method
Estimating Future Demand