Methods

1.

Survey Methods
(a)

Survey of buyer intentions

Census method Sample method (b) Sales force opinion method 2. Statistical Methods
(a) Trend Projection methods

Trend line by observation Time Series analysis Moving Average Method Exponential Smoothing

(b) Barometric techniques (c) Correlation and regression methods 3. Other Methods (a) Expert Opinion methods (b) Test Marketing (c) Controlled Experiments (d) Judgemental approach

 Survey Methods
Survey of buyer intention

Census Method Survey of buyers can be conducted either by covering the whole population is called Census Method Sample Method Selecting the sample group of buyers

Advantage: customer stick to their intention the product is new on the market for which no data previously exists.
Disadvantage: survey may be expensive sample size and timing of survey

 Sales force Opinion:

Sources of getting reliable information about the level of demand through the sales person. Control the limitation of cost and delay contacting the customers

The people touch with the main buyer.

Less costly thorugh telephone, fax, video conferencing .

2. Statistical Methods (a) Trend projection method: analysis of past sales patterns. will manage without the need of cost for market research time series data. (i) Trend line by observation: It is elemantary, easy, quick. Involves the plotting of actual sales data on chart. The line can be expected towards a future period

(ii) Time series analysis: It considers large large amount of past data for the product to speak abou the different components. the survey or market test are costly and time consuming. Trend Cyclic Trend Seasonal Trend

(iii) Moving average Method Selection of the number of years is the decisive factor in this method. easy and compute. the average keeps on moving depending upon the number of years selected. (b) Barometric Techniques: one set of data is used to predict another set. the relevant indicator is used as a barometer techiques. this method gets restricted where it is difficult to determine the time lag between the change in one variable and change in the forecast techniques.

 Correlation and regression

this is statistical techniques correlation is a relationship in which one things affects or depends on another. one variable is dependent, another is independent. if the high values of one value are associated with the high values of another it is positively : eg: sales, advertisment expenditure. if the high value of one variable are associated with the low values of another, negatively. Eg; price and product. correlation: whether to find if change in price will affect the demand or not. Regression: how much it will affect.

Other Methods
Expert method: well informed person called experts the person is outside experts in market. he is good to analyzing the future trends in an given product. (ii) Test Marketing: Before implementing the product, offer a product for sale in a limited market and test the results. (iii) Controlled Experiments the company can experiment different homogeneous markets releasing its product with different types of appeal. (iv) Judgemental approach: the methods are suitable to assess demand for a particular product or service, the only alternative approach is use ones judgement.
(i)

Supply
It means quantity of goods or services offered for sale

at various prices during a specific period of time.

Supply schedule and curve show the relatioship

between the market price of the product or quantity of the product.

Firms are willing to produce and sell.

Law of Supply
More quantity of a commodity offered for sale at

higher prices.
Less quantity of a commodity offered for sale at lower

prices.
A firm supply the goods for profit. There is a positively relationship between the price of

the good and its quantity supplied.

Price (Rs)

Quantity supplied

5
6 7 8 9 10 Supply Schedule

50
80 120 160 200 250

Movement along the supply curve: changes in quantity supplied for movement along the supply curve which takes place when the prices changes. Shift in supply curve: Reasons:

Changes in the prices of inputs Changes in technology Changes in the number of firms Change in the prices of related products Future price expectation by sellers Government policy with regards to taxes, subsidies, trade, credit. Miscellaneous Factors.