Nature of Sales Forecasts and Merchandising Plan Advanced Marketing

What is Sales Forecasting Projection of ACHIEVABLE revenue Based on historical sales data Market surveys Trends Used in developing merchandising plan

Purpose and Use of Sales Forecasts Developing merchandise budgets Analyzing the market Determining market share Developing promotional budgets Altering the marketing mix Projecting sales Examining past sales Examining economic and business conditions Identifying competitor’s strategies Determining future need.

Merchandising Plan Planning sales and the product mix (inventory) to maximize sales and profits A plan- typically 6 months to 1 year out of planned inventory Inventory (product that is ordered for re- sell) is identified in a budget Plan is based on marketing research and data analysis that supports the investment

Marketing Research Process 1.Determine need or identify problem 2.Develop approach to meet the need or solve problem 3.Design research framework (identify and prepare plan for how to conduct research) 4.Conduct data collection 5.Analyze data 6.Report data

Ways to Conduct Research Primary Research- comes directly from the source (interviews, focus groups, talking with customers, surveys) Secondary Research- gathering statistics, reports, information from other agencies, organizations, or trade associations

Primary Research Focus Groups Surveys and Questionnaires One –On-One Interviews

Focus Groups Small number of people (between 4 and 15, but typically 8) brought together with a moderator to focus on a specific product or topic. Focus groups aim at a discussion instead of on individual responses to formal questions Produce qualitative data (preferences and beliefs) that may or may not be representative of the general population. Qualitative data- preferences and beliefs Quantitative data- data that can be measured numerically

Surveys and Questionnaires 1.Determine nature, size, and extent of your market 2.Determine what aspect of your market you want to investigate 3.Find out where and when you can research customers in your market 4.Choose your sample size (should be as large as possible to ensure accurate results) 5.Prepare list of questions that will provide the data that you need 6.Devise ways to quantify the responses 7.Figure out any variables that might skew the data 8.Set time period and for conducting survey 9.Prepare survey forms 10.Conduct research using surveys

Secondary Research Internet Trade Associations Government Agencies Valid sources other than direct responses from customers

Tips for Navigating Internet Research Be familiar with terms for which you search Be concise with search terms Use keywords that describe your topic use nouns and pronouns as keywords with the most important terms being placed first. Find effective search engines

Effective Search Engines Standard search engine such as Invisible web search engine such as Meta search engine such as Specialized search engine such as

Managing Marketing Information Project Conduct simple marketing research, using PRIMARY RESEARCH, to identify four new products to introduce in to the product mix of The Falcons’ Nest. Prepare a marketing research report and deliver the results of the research through a PPT presentation to the class. Develop a merchandise plan and sales forecast for The Falcons’ Nest that identifies the vendor; exact style, design, colors, sizing, quantity to order and cost; identifies dates for placing order and dates for delivery of inventory; identifies the retail sales price Product must be in the store and ready to sell by August 15, 2015 Create a sales forecast for the new items for the time period of August 15 – December 31, Points