MKTG6004 Lecture Notes - Lecture 11: Life-Cycle Assessment, Sales Operations, Financial Analysis

• School: University of Sydney
• Department: Marketing
• Course: MKTG6004
• Professor: Steven Lu

Document Summary

Sales fore(cid:272)asti(cid:374)g: a produ(cid:272)t"s pote(cid:374)tial (cid:373)ay (cid:271)e high (cid:271)ut sales (cid:373)ay (cid:374)ot (cid:373)aterialise due to i(cid:374)suffi(cid:272)ie(cid:374)t marketing effort. Sales will grow through time if we get customers to try the product and convert them into repeat purchasers and if they recommend to others etc. After this growth period sales will eventually stabilise thus projections of long-ru(cid:374) sales should (cid:271)e de(cid:448)eloped. Lastly our produ(cid:272)t"s sales (cid:449)ill depe(cid:374)d o(cid:374) our (cid:272)o(cid:373)petitor"s strategies as (cid:449)ell as our o(cid:449)(cid:374). Whe(cid:374) sele(cid:272)ti(cid:374)g the (cid:373)ost appropriate forecasting model one should consider time, cost and product and market newness. Forecasting sales using traditional methods: current market, current technology: cost reductions and process improvements requires sales analysis. Current market, new technology: line extension requires product line analysis, life cycle analysis. New market, current product: new market or new product uses requires customer analysis, market analysis. New market, new technology: new to the world/firm, requires scenario or what if analysis.