Market Sales Potential


Market sales potential is a quantitative approximation of effective demand. Specifically, market sales potential is the maximum level of sales that might be available to all organizations serving a defined market in a specific time period given 1) the marketing mix activities and effort of all organizations, and 2) a set of environmental conditions. As this definition indicates, market sales potential is not a fixed amount. Rather, it is a function of a number of factors, some of which are controllable and others not controllable by organizations. For example, controllable marketing-mix activities and marketing related expenditures of organizations can influence market sales potential. On the other hand, consumer disposable income, government regulations, and other social, economic, and political conditions are not controllable by organizations, but do affect market sales potential. These uncontrollable factors are particularly relevant in estimating market sales potential in developing countries.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Definition of the Problem


We must first define a problem exactly before we can describe, analyze, and explain it. We define it with the deviation statement, or name of the problem. It is important to state this name precisely because all the work to follow—all the description, analysis, and explanation we will undertake—will be directed at correcting the problem as it has been named.

However simple or complex a problem may seem at the outset, it is always worth a minute or two to ask, “Can the effect of this problem in the deviation statement be explained now?” If it can, we must back up to the point at which we can no longer explain the deviation statement. Vague or generalized deviation statements must be reworded into specific deviation statements that name one object or kind of object, and, and one malfunction or kind of malfunction for which I wish to discover and explain cause.

It is tempting to combine two or more deviations, in a single problem-solving effort or to try bunch a bevy of seemingly related problems into one overall problem. Nearly, everyone has attended meetings during which two or more distinct problems were tied ankle to ankle in a kind of problem-solving sack race. This procedure is almost always inefficient and unproductive.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Concept Lifecycle


The new products process essentially turns an opportunity (the real start) into a profit flow (the real finish). It begins with something that is not a product (the profit). The product comes from a situation and turns into an end.

What we have, then, is an evolving product, or better, an evolving concept that, at the end, may become a product. There are stages, like individual frames in a movie film:

  • Opportunity concept-a company skill or resource, or customer problem.
  • Idea concept-the first appearance of an idea.
  • Stated concept-a home or technology, plus a clear statement of benefit.
  • Tested concept-it has passed an end user concept test; need is confirmed.
  • Full screened concept-it passes the test of fit with company situation.
  • Protocol concepts-a statement (product definition) of the intended market user.
  • Prototype concept-a tentative physical product or system procedure, including features and benefits.
  • Batch concept-first full test of fit with manufacturing; it can be made. Specifications are written, exactly what the product is to be, including features, characteristics, and standards.
  • Process concept-the full manufacturing process is complete.
  • Pilot concept-a supply of the new product, produced in quantity from a pilot production line, enough for field testing with end users.
  • Marketed concept-output of the scale-up process either for a market test or full scale launch.
  • Successful concept (new product)-it meets the goals set for it at the start of the project.

Some firms have as many as three production models or prototypes. So, the idea that a new product suddenly “emerges” from R&D-like a chicken from an egg-is simply incorrect.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Compliance and Integrity


In the earliest stages, organizational ethics centered on the narrow perspective of ethics—the notion of compliance. Are we following the laws? Are we at risk from litigation? If so, how do we minimize that risk?

Ethics programs matured and ethics officers, most of whom are selected from the managerial ranks with little, if any, special preparation, developed increased sophistication regarding the challenges facing their organizations. Both the ethics officers and their organizations began to embrace personal and corporate values in decision making (value-based decision making) as the logical expansion of the definition of what it means to be ethical. What has emerged is what many ethics officers today characterize as the “best practices” model of the ethics office and of a values-based corporation.

But change continues. What is emerging today is a more holistic definition of what it means to be a “good” corporation. This new, global view will again help to reshape the responsibilities and focus of the ethics officer.

The shift to a global perspective means another broadening of the definition of ethics. “Global Integrity” is the latest descriptor, and it embraces both compliance and ethics. It also adds concern for rule of law, human rights, good governance, labor/child labor concerns, anti-corruption/anti-bribery, concern for the environment, safety, social responsibility, good corporate citizenship, and respect for the whole diverse array of local cultures to the definition. This increases the organization’s obligation to reach beyond traditional company boundaries to consider how decisions would affect the surrounding community. One consequence of this new global definition of the organizational ethics is increased scrutiny by stakeholders, especially advocacy groups and the media.

Corporate ethics officers, especially those in multinational corporations and/or corporations with global suppliers/markets, are being challenged with fundamental questions in this expanded integrity area. Perhaps the most common, and most challenging, is how the corporation will balance the desire for global standards (consistency) against the need for local application of standards.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Market Sales Potential and Profitability


An essential activity in opportunity evaluation is the determination of market sales potential and profitability. Estimating market’s sales potential for offerings is a difficult task even for a seasoned marketing executive. Markets and offerings can be defined in numerous ways that can lead to different estimates of market size and dollar sales potential. For innovative offerings or new markets, marketing analysts must often rely almost entirely on judgment and creativity when estimating market sales potential. Therefore, it is understandable that market sales potential estimates very greatly for high definition television  (HDTV) and hybrid (gasoline and battery powered) automobiles. The underlying technology for both offerings is still evolving as is the physical form. In such dynamic settings, measures for identifying prospective market segments are uncertain.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Company Demographics


For all customers or prospect records the following basic attributes will lay a solid foundation for numerous segmentations:

  1. Category code: A four-digit code is usually a sufficiently descriptive definition your market is concentrated in several Standard Industry Codes, then going to the six or eight digit level may be appropriate. Remember the SIC is currently undergoing revision, so be flexible with this field.
  2. Company size: There are two choices – sales volume or employee size. It is probably best to use employee size, as it is more easily obtained and more accurate than company revenue. Record employee numbers by site so that they can be rolled up to the corporate level.
  3. Site Type and Linkage: There are some standard definitions here such as branch, division and corporate headquarters. It is important that you take time to develop a site definition that fits your business as this might include plant, research center, etc. secondly, link the sites to a corporate structure, so that a roll-up to the enterprise level can be carried out to look at the customer picture.
  4. Financial year: For those selling situations that involve the customer needing to budget for your product or service, the knowledge of the fiscal year becomes critical, as this will drive the buying process and therefore your selling cycle. Most companies are on a calendar/fiscal year, but about 20 percent are on a different fiscal year basis. In the consumer market this might also be relevant – for example in acquiring expensive items.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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