Podcast
Questions and Answers
What is the first step in the Chain Method for estimating market demand for dark beer?
What is the first step in the Chain Method for estimating market demand for dark beer?
- Determine the total population. (correct)
- Identify your personal estimate of target market income.
- Calculate the average percentage spent on beers.
- Estimate the average spending on food.
Which of the following methods relies on a single factor for estimating geographical market potential?
Which of the following methods relies on a single factor for estimating geographical market potential?
- The Market Build-up Method
- The Chain Method
- The Index-of-Buying-Power Method (correct)
- The Arithmetic Straight Line Method
In the context of demand measurement, which of the following methods does NOT utilize multipliers?
In the context of demand measurement, which of the following methods does NOT utilize multipliers?
- The Chain Method
- The Index-of-Buying-Power Method (correct)
- The Statistical Straight Line Method
- The Market Build-up Method
Which method is characterized by the use of computer-aided formulas for estimating market demand in large companies?
Which method is characterized by the use of computer-aided formulas for estimating market demand in large companies?
Which computational method is NOT classified under Statistical Methods?
Which computational method is NOT classified under Statistical Methods?
What defines market demand according to Philip Kotler?
What defines market demand according to Philip Kotler?
Which method of measuring market demand involves calculating consumption based on population?
Which method of measuring market demand involves calculating consumption based on population?
What is one reason analysts might use a 'correction factor' when measuring market demand?
What is one reason analysts might use a 'correction factor' when measuring market demand?
Which of the following organizations is NOT mentioned as a source for market data?
Which of the following organizations is NOT mentioned as a source for market data?
What is a characteristic of commissioning professional market analysts for demand measurements?
What is a characteristic of commissioning professional market analysts for demand measurements?
How can marketers estimate total demand based on their product's market share?
How can marketers estimate total demand based on their product's market share?
Why might the methods of demand measurement described be challenging for novice researchers?
Why might the methods of demand measurement described be challenging for novice researchers?
What factor is NOT part of Kotler's market demand definition?
What factor is NOT part of Kotler's market demand definition?
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Study Notes
Market Demand Measurement
- Market demand for a product is the total volume bought by a specific customer group within a defined area, period, marketing environment, and program.
Theoretical Demand Measurement
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Published Statistics: Use statistics from agencies such as National Statistics Office (NSO), National Economic and Development Authority (NEDA), Department of Trade and Industry (DTI), and the Bangko Sentral ng Pilipinas (BSP) to determine market demand.
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Per Capita Consumption: Multiply per capita consumption by the population of your target market to estimate theoretical consumption.
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Total Demand (Percentage Share): Multiply the percentage share of your specific product(s) to the total market by the overall market size to determine theoretical demand.
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Theoretical Market Equations: Market demand can be computed through intricate computer programs using various market data. This method is typically used by larger companies due to its cost and complexity.
Analytical Demand Measurement
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Chain Method: Estimate market demand by considering factors such as total population, target market population, per capita income, spending on food, spending on alcoholic beverages, spending on beer, and spending on dark beer.
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Market Build-up Method: This method is incompletely described in the text, but likely focuses on identifying all potential customers and their consumption habits.
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Index-of-Buying-Power Method: This method uses one factor, such as population, to estimate market potential. For example, if your target market comprises 5.2% of the total consumer population, it may be assumed they consume 5.2% of the total products sold in the market. This method is commonly used for small companies, while larger companies rely on complex computer-aided formulas.
Projection Methods
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Arithmetic Methods:
- Arithmetic Straight Line Method: Projects demand based on a consistent, linear growth rate.
- Arithmetic Geometric Curve Method: Projects demand using a combination of linear and exponential growth rates.
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Statistical Methods:
- Statistical Straight Line Method: Uses statistical data to project demand along a linear trend.
- Statistical Semi-Long Method: Uses a combination of linear and non-linear trends for projection.
- Statistical Parabolic Projection Method: Projects demand using a parabolic curve to account for accelerating or decelerating growth.
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