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Meaning:
Forecasting of demand is the art of predicting demand for a product or service at some
future date on the basis of certain present and past behavior patterns of some related
events.
A demand forecasting is not a speculative exercise into the unknown but, essentially,
reasonable judgement of future probabilities of the market events. It cannot be 100%
precise but it gives a reliable approximation regarding the possible outcome, with a
reasonable accuracy.
Usefulness:
Forecasting of demand is the art of predicting demand for a product or service at some
future date. Hence it plays an important role in the process of planning and decision
making at micro as well as macro level. Expansion of output of the firm should be based on
the estimates of likely demand, otherwise there may be over production and losses may
have to be faced.
For controlling the business on a sound footing, it is essential to have proper budgeting of
costs and profits that is based on forecasting.
Similarly, a satisfactory control of business inventories raw materials, semi-finished
products, finished products, spare parts requires satisfactory estimates of future
requirements, which can be traced through demand forecasting.
Demand forecasting at macro level is of great help to the planners and policy makers for
better planning and rational allocation of country’s resources. Though, it is not fool proof
and correct but it helps in evaluating various forces which affects demand.
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Demand Forecasting
(NATIONAL ANALYSTS)
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• Integrating the influence of multiple decision makers on acquisition
and usage.
Competitive Landscape
Competitive Timeline
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conditions are defined, we create context descriptions that precede the
purchase/usage likelihood questions used in surveys. Using this tact, we
"educate" respondents about future conditions so that they can
meaningfully respond to options that will appear in the future.
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National Analysts' sophisticated knowledge of industries and markets, as
well as research and modeling, enables us to conceive of and frame choice
exercises that enhance precision and create actionable insight whether the
product is currently available or clearly innovative.
One of the most effective ways to account for these types of contingencies
is to use conjoint or discrete choice analysis. These techniques expose
decision makers to samples of alternative configurations to obtain
measures of the relative impact of each candidate attribute or contingency.
Using decision maker preferences, conjoint and discrete choice analysis
permits forecasts for thousands of alternative configurations or
contingencies.
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Demand estimation by segment can create considerable value for clients.
Understanding what groups are more likely to acquire or use a product
permits cost-effective targeting of promotional and sales activities. Consider
the example below:
In this example there are five times more primary care physicians than
specialists yet specialists manage about the same number of patients who
are eligible for a new therapy. Demand forecasting estimates that
specialists will prescribe the new therapy for five times as many patients.
Clearly, by targeting specialists, a pharmaceutical firm could use a smaller
sales force to produce considerably more sales.
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The presence of world-class segmentation and modeling expertise makes
National Analysts particularly effective in helping clients cost-effectively
target and acquire revenue.
• There are five million diagnosed heart failure patients in the U.S.
• A survey of physicians who treat heart failure produces an
unadjusted estimate that 40% of all heart patients would receive
drug X if it were available.
• Anticipating more than two million patients, pharmaceutical firm A
invests heavily in advertising, promotion, and sales reps.
• Three years after introduction, only 200,000 patients receive drug X.
While some research and consulting firms claim to have a formula for
various forms of error, National Analysts has found that variations in
product, market, and competitive conditions make canned approaches
unreliable. In fact, our most reliable calibrations for error are customized
using a combination of forecasting experience and modeling expertise
supplemented by a healthy dose of product, industry, and market
knowledge.
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National Analysts’ experience has taught them to tailor their forecasting
approach to the appropriate decision-making conditions. Frequently, it is
necessary to identify and survey multiple influencers or decision makers,
and then integrate their views. For example, if they are asked to estimate
the prescribing volume of a new drug therapy:
Then, for any particular combination of (1) a drug's clinical profile, (2) its
formulary status, and (3) the degree of patient demand and preference,
National Analysts can generate an estimate of prescribing volume.
Product Development
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• A LINK tool that identifies the optimal product/service package and
positioning for each and every record in your marketing database,
facilitating product-specific prospect list generation and prioritization.
Since no two brands are alike, there is no rigid formula for brand
marketing research; rather, there are rules of logic and good judgment.
Important components of the process include:
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• Implementing systematic brand equity measurements, exploring the
brand's value and resilience (flexibility) in existing markets as well
as its leverage (control) potential for extensions into new markets.
• Monitoring ongoing performance through a systematic brand health
tracking program.
Portfolio Strategy
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Product Lifecycle Research
Pre-launch ….
Clients from a broad array of industries rely upon National Analysts to help
understand current and future market landscapes as they plan for new
product launches.
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help clients identify the features most likely to drive or suppress trial
and sustain usage in current and future markets.
Product Introduction…
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Thus, communications effectiveness and early-stage product trial are key
concerns to clients in this phase, and National Analysts is often called upon
for guidance in design and execution of research to address:
Product Growth …
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• Assessments of new pricing and reimbursement strategies to sustain
growth and brand loyalty, while encouraging broader market
penetration
• Analyses of repositioning efforts to take advantage of any changes in
the marketplace
• Evaluations of alternative marketing and promotional campaigns and
materials to build awareness and interest in broader market
Product Maturity …
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this phase is to extract maximum revenue from the product while reducing
marketing, sales and promotional costs.
Research analysis
Qualitative Research
Focus Groups
National Analysts played a seminal role in the development of the focus
group methodology and remains a leader in its effective application. Their
moderators are experienced and adept, and the roster of respondents
includes every conceivable type of respondent from patients to physicians,
children to CEOs. Under the heading of focus groups come traditional
group discussions with grass-roots participants as well as idea-generating
sessions and advisory panels with industry leaders at home and abroad.
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is a proprietary online bulletin board service that can be used to conduct
cost-effective in-depth interviews or group interviews anywhere in the
world. Qualified participants are recruited by phone, mail, or e-mail to the
bulletin board. After logging on to the bulletin board, a moderator facilitates
an iterative discussion among participants.
Clients find their bulletin board service a valuable way to uncover new
product ideas, test concepts, and probe decision processes and
motivations. Other applications include panels of selected groups including
early adopters for iterative concept development and segment members for
monitoring changing needs and preferences.
Quantitative Research
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Problem Definition
Successful assignments always begin with effective problem definition.
Helping clients conceptualize marketing issues and translate business
problems into practical research questions are what National Analysts
professionals do.
Sampling
The accuracy and credibility of research ultimately depend in large part on
a rigorous well-conceived sample design at the front end and proper
weighting procedures applied at the back. The presence of the experienced
sampling experts with them gives the flexibility to design and execute
exacting sampling plans.
Questionnaire Development
National Analysts approaches the fine art of questionnaire design with
sensitivity to the challenges of measurement and a thorough appreciation
for all the various metrics that can be used to capture attitudes and
behaviors.
Data Analysis
National Analysts is also prepared to incorporate secondary and customer
databases when necessary to support customer segmentation and
econometric modeling. The types of database services they provide include
merging, matching, and fusion of client and secondary proprietary
databases, as well as database scoring.
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modeling helps marketers locate potential buyers; determine how much
they have to spend; determine customer priorities and specify the
combination of product, price, promotion, and placement that will earn the
greatest revenue and maximize demand.
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