Marketing

Merchandising Management Sales Phasing

As a function of continuous planning and product determination, the product firms make out numerous market predictions and forecasts based on factual data. The demand can be assessed from six separate product differentiations. These are product items, product form, product line, company turnover, industry turnover, and national turnover. There are five spatial positions – customers, territory, region, country, and the globe. There are also three-time levels such as short-range, medium-range, and long-range. The pricing strategy of any product firm and its marketing policies will largely depend on the above factors.Each type of demand assessment and estimation meets a particular need or purpose. Normally, short-range demand forecasts are made to estimate the quantum of raw material inventories needed and for planning production and scheduling the need for funds for carrying out short-run operations. “The company’s multi-dimensional approach to forecasting gives users the ability to forecast demand at multiple levels within their organizational structures. The long-range product forecasts are carried out to evolve strategies in order to increase/decrease their long-term product marketing plans.” (IMA Visual Planning Suit by Inventory Management Associates. 2003).The field of demand measurement is filled with a number of abstruse terminologies. The executives of the company talk about forecasts, estimates, projections, targets, and budgets, and in today’s world, many of these terms are superfluous. The major concepts of demand measurement are market demand and company demand. Within each, we differentiate between demand function, forecast, and potential.“Market demand for a product is the total quantum of sales generated that would be purchased by a particular clientele in a specific geographical area within a defined timeframe relating to a given marketing environment under a specified marketing program.”

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