Forecasting Demand
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Year 1
Year 2
Year 3
Forecast Sales
70,000
165,000
240,000
Actual
100,500
213,225
291,500
Price
$295
Profitability
10.11%
4.78%
Forecasting Market Demand
b) Forecasting Future Demand done through Survey of Buyers Intentions, Composite of Sales Force opinions, Expert Opinions, and Market Test Method. Fixing price to the level of the market condition is very important. Depending on forecasting market demand may not be acceptable for production decision all the time. No product will guarantee the demand based on the market trend. In a volatile market, product demand can change in a short period unless there is a clear monopoly.
c) Pricing is done in this case was based on the nature of the market or customers. Doctors, IT Industries, banking industries and general market has different prices. Increasing the total number of customers is the first step most business owners and managers take to grow their business. Losses can occur when inexperienced sales personnel are put in charge of designing and implementing a marketing program – investing corporate resources to find more customers. Executed correctly, basic marketing strategies cost efficiently produce new prospects who are ready, willing and able to buy products or services. The main purpose of a marketing strategy is to give sales personnel prospects to convert into paying customers.
2. Services Added Based Differentiation
Year 1
Year 2
Year 3
Selling Price
55,995
57,995
57,995
Sales in Units
105,600
125,083
134,057
Sales in Value
5,913,072,000
7,254,200,184
7,774,622,210
Total Cost
5,627,880,000
6,748,361,280
7,336,544,482
Profitability
4.82%
6.97%
5.63%
Industry Sales
1,458,000
1,574,640
1,669,118
Market Share
7.24%
7.94%
8.03%
b) Services added means that, give the customer more, perhaps far more, than ever have before. It goes beyond simplifying customers interactions to delivering solutions to customers problems, of which the products and services in their native forms are but small pieces It is a ladder with product at the bottom and the solution to the customers problems at the top. The more help provide to customers to fill that gap, the more value will add to them, which, of course, differentiate from competitors who are still scrambling around at the bottom of the ladder.
c) If all the manufacturers trying to attract same customer, additional supplementary services that increase customers perceived value of the product is needed. Go beyond meeting the basic needs of the customer when offering products. Offer incentives to attract more customers. When offering incentives or services, seller must ensure that it is equal or better services or incentive than what competitors offer. Therefore, a detailed review of competitors products and its market impact is needed for the marketing audit