DEMAND FORECASTING

 Demand forecasting is predicting future

demand for the product.

 it refers to the prediction of probable demand

for a product or a service on the basis of the
past events and prevailing trends in the
present.
 TYPES

 SHORT TERM FORECASTING

 LONG TERM FORECASTING

USES OF DEMAND FORECASTING

 production planning
 inventory management
 in assessing future capacity requirements
 in making decisions on whether to enter a new
market
OBJECTIVES

 It helps in deciding the production schedule

 Helps in managing the resources effectively
 Directs the organization to evaluate the
production capacity
 It helps in deciding the purchase policy for
raw material supply and its procurement
METHODS OF DEMAND FORECASTING
 Methods that rely on qualitative assessment
 Forecasting demand based on expert opinion. Some of
the types in this method are,
 Unaided judgment
 Prediction market
 Delphi technique
 Game theory
 Judgmental bootstrapping
 Simulated interaction
 Intentions and expectations surveys
 jury of executive method
 METHODS THAT RELY ON QUANTITATIVE
DATA
 Discrete event simulation
 Extrapolation
 Group method of data handling (GMDH)
 Reference class forecasting
 Quantitative analogies
 Rule-based forecasting
 Neural networks
 Data mining
 Conjoint analysis
 Causal models
 Segmentation
 Exponential smoothing models
 Box–Jenkins models
 Hybrid models
 SOME OF THE OTHER METHODS

a) time series projection methods this includes:

 moving average method
 exponential smoothing method
 trend projection methods
b) causal methods this includes:
 chain-ratio method
 consumption level method
 end use method
 leading indicator method
MARKET
SEGMENTATION
 CONTENTS

 What is Market Segmentation

 Need of Market Segmentation
 Benefits & limitations
 Segmenting consumer Markets
 Segmenting industrial markets
WHAT IS MARKET SEGMENTATION ?

 It is the process of dividing the broad market

into subsets of consumers who have common
need &priority and then designing the
product and implementing market strategies
accordingly.
 It can be performed for both consumers
market as well as industrial market.
NEED OF MARKET SEGMENTATION

 Starts from the premise that all buyers are

not same: product uses,motivation,needs and
desires.
 It allows you to choose which buyers to target
and provides important insightsas to how to
appeal to them.
 Significant competitive advantage.
 ADVANTAGES

 The firms which can not cover the entire

market can select a particular and survive in
the business.
 Effective utilization of marketing resources.
 Due to concentration on only particualr
customers its easy to satisfy their needs.
 Organizations can easily understand and
focus on the needs priorities of segmented
market.
 MARKET SEGMENTATION FOR
CONSUMER MARKETS

Consumer
markets

GEOGRAPHICAL BAHAVIORAL

DEMOGRAPHICAL
PSYCHOGRAPHIC
MARKET SEGMENTATION FOR
INDUSTRIAL MARKETS

 Demographic basis

 Operating variables characteristics basis

 Purchasing Approach basis

 Buyer’s based segmentation

THANK YOU