Class5-October122015.pdf BA 101
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This 4 page Class Notes was uploaded by Jillian Rogers on Monday October 12, 2015. The Class Notes belongs to BA 101 at University of Oregon taught by Tom Durant in Fall. Since its upload, it has received 34 views. For similar materials see Business 101 in Business at University of Oregon.
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Date Created: 10/12/15
Class 5 Introduction to business Monday October 12 2015 Attractiveness Scores Customer Survey Score CSS Attractiveness C55 scores represent market research that has been provided for your use It summarizes how you and your products are perceived by your customers CSS components include 7 criteria 1 2 3 4 5 6 7 Product positioning Performance and Size MTBF mean time between failure Price Age years since initial introduction Awareness how aware your customers are about your products Accessibility how easily your customers are able to ndpurchase your product Accounts Receivable policy your customers ability to purchase your product on credit Marketing Management Sales budget and Accessibility When you spend money in sales budget more sales people you increase accessibility to your products Harder to get a CSS score of 100 Promotion and Awareness When you spend money in promotion budget you increase awareness about your products through advertising Easier to get a CSS score of 100 lnvest money to promote the remaining who are unaware after you adjust your percentage calculate in the people who with nd you on their own 12 Buver s and Seller s Markets Understanding is helpful for Sales Forecasting and Production Planning Buyer s and Seller s Markets represent the relationship between supply of product and the demand for product These markets can be challenging maybe even impossible to predict Anticipated availability of product by you and your competitors can be an indicator This is determined by the difference in quotindustry demand versus quotactual industry sales Seller s Market Limited supply occurs due to stock outs companies ran out of inventory for sale Customers search for any available products and reduce their product and price expectations Sellers have the opportunity to sell less appealing products Products priced up to 999 above the price range will sell Not at or above 1000 A seller s market will change how you forecast your sales for the forthcoming year Actual sales supply of product are less than Demanded sales Buyer s Market There is plenty of product available Customers will be selective about the products they buy Sellers must make products as appealing as possible and priced within the range Sales volume will decrease 10 for every dollar over the price range A buyer s market may be more predictable based on demand market share forecasting and customer buying behavior Actual sales supply of product are equal to the Demanded sales Sales Forecastinq Four Techniques methods 1 Market Growth Estimate 2 Market Share Estimate 3 Counting Products 4 Dec Customer Survey DCS Market Growth Estimate Technique For each product take the number sold in the low tech segment from last year and increase it by the growth rate for the upcoming year eg10 For each product take the number sold in the high tech segment from last year and increase it by the growth rate for the upcoming year eg 20 If a product sells in both segments take the number sold in each segment increase each by the growth rate and add the two together If you serve your customers exactly as well this year as you did in the reported year AND your competitors serve their customers exactly as well this year as in the reported year the market growth estimate would be an accurate forecast Market Share Estimate Technique Take the quotTotal Industry Unit Demandquot for each segment from last year and increase it by next year s growth rate 10 or 20 this is the DEMAND for your products next year in that segment Take each company s quotPotential Market Sharequot from the reported year for each segment and multiply the result by the DEMAND for your products next year in that segment This gives you a quotpotential share estimate How to nd the Sales Forecast First nd out the demand that will be next year Then multiple that by the potential market share Counting Products not the best method Helpful when little information is available Count the number of products that are in the market segment where your products compete Assume that each product in that segment will get the same level of sales as the other products The result is your share of sales in that segment December Customer Survev Score DCS relv on the most The most insightful technique using the most current information Example Customer Survey Scores 1 Your product compared to customer expectation Adjusted by Awareness Accessibility Accounts Receivable 2 Customers will compare your evaluation to your competitors Decanter Mama Cusnnner Smwey iiiijle 23 Cake 3D Baker 33 Eat 13 DaIE EU Fast 1 Haiti 1 Calculate the total DCS score by adding together all DCS scores this is the base number 1 Total the DCS scores 282023182011111 2 Divide Able s DCS by the Total DCS 28111 252 This is your DCS share 3 Multiply your DCS share 252 by next year s total demand
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