Forecasting and Demand Measurement

Question 1

Differnet market demand measures

Answer 1

• Potential market
• Available market
• Target market
• Penetrated market

Question 2

Potential market

Answer 2

Biggest demand, with complete purchase power available

Question 3

Available market

Answer 3

Realistic demand, purchase power after basic expenditures

Question 4

Target market

Answer 4

Customer journey, customer profile available

Question 5

Types of demand measurement - how is demand measured?

Answer 5

On a…
• Space level
• Product level
• Time level

Question 6

Estimating demand - 2 types

Answer 6

• Current demand

- Future demand

Question 7

Estimating current demand

Answer 7

• Total market potential: chain ratio method
• Area market potential: market-build-up method, multiple-factor index method
• Industry sales and market share

Question 8

Estimating future demand

Answer 8

•	Survey of buyers’ intentions
(Forecasting and purchase probability scale )
•	Composite of sales force opinions
•	Expert opinion 
•	Past-sales analysis
•	Market-test method

Question 9

Gaining a realistic perspective on your companies success

Answer 9

• Multiple sources and external information needed to get a realistic perspective

because. ..
- Every company defines success differently

• According to own analysis, they will be the leaders themselves