From Surf Wiki (app.surf) — the open knowledge base
Volume projections
Technique used to forecast sales
Technique used to forecast sales
Volume projections enable marketers to forecast sales by sampling customer intentions through surveys and market studies. By estimating how many customers will try a new product, and how often they will make repeat purchases, marketers can establish the basis for such projections. Projections from customer surveys are especially useful in the early stages of product development and in setting the timing for product launch. Through such projections, customer response can be estimated without the expense of a full product launch. In a survey of nearly 200 senior marketing managers, 56 percent responded that they found volume projections very useful.
TOC
Purpose
When projecting sales for relatively new products, marketers typically use a system of trial and repeat calculations to anticipate sales in future periods. This works on the principle that everyone buying the product will either be a new customer (a 'trier') or a repeat customer. By adding new and repeat customers in any period, we can establish the penetration of a product in the marketplace. It is challenging, however, to project sales to a large population on the basis of simulated test markets, or even full-fledged regional rollouts. Marketers have developed various solutions to increase the speed and reduce the cost of test marketing, such as stocking a store with products (or mock-ups of new products) or giving customers money to buy the products of their choice. These simulate real shopping conditions but require specific models to estimate full-market volume on the basis of test results.
Construction
Volume projections combine trial volume and repeat volume, that is:
:Total volume (#) = Trial volume (#) + Repeat volume (#)
References
- Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance.
References
- Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). ''Marketing Metrics: The Definitive Guide to Measuring Marketing Performance.'' Upper Saddle River, New Jersey: Pearson Education, Inc. {{ISBN. 0137058292. The [[Marketing Accountability Standards Board (MASB)]] endorses the definitions, purposes, and constructs of classes of measures that appear in ''Marketing Metrics'' as part of its ongoing [http://www.commonlanguage.wikispaces.net/ Common Language in Marketing Project].
This article was imported from Wikipedia and is available under the Creative Commons Attribution-ShareAlike 4.0 License. Content has been adapted to SurfDoc format. Original contributors can be found on the article history page.
Ask Mako anything about Volume projections — get instant answers, deeper analysis, and related topics.
Research with MakoFree with your Surf account
Create a free account to save articles, ask Mako questions, and organize your research.
Sign up freeThis content may have been generated or modified by AI. CloudSurf Software LLC is not responsible for the accuracy, completeness, or reliability of AI-generated content. Always verify important information from primary sources.
Report