1Market Measurement and Forecasting : 

Introduction : 
Introduction Market measuring and forecasting requires an analysis of the market with an aim
of expressing it in quantitative (numeric) quantities both present and in the future. The
quantitative measurement and forecasting of the market, together with its qualitative
characteristics, are used as a basis for decision making by marketing management. Market
measurement and forecasting can be seen as a subdivision of market research. Once the
research is complete, the company must measure and forecast the size, growth, and profit
potential of each market opportunity

Definition of Market Measurement : 

Definition of Market Measurement “Usually applied to fundamental measurement of market
volume, value, brand shares and the trends of all of these. Data for these may be collected
from secondary sources, from special censuses or surveys, or from syndicated research such
as CONSUMER PANELS. The definition of the market to be measured is often difficult, and
depends on the marketing or corporate objectives involved.” -- The Westburn Dictionary of
Marketing Market measurement is management tool through which the markets which is
investigated is expressed in quantitatively measurable entities.

Need for measurement and forecasting : 

Need for measurement and forecasting The main goal of market measurement and forecasting
is to serve as an aid in the decisions that marketing management has to make Knowledge of
market sizes and probable growth patterns provide the basis for the selection of attractive
markets It helps in the formulation of appropriate marketing strategies It helps in taking
decisions in a more objective and scientific manner and to lessen the risk and uncertainty that
accompany subjective decisions and guesswork. It helps evaluating the feasibility of entering
new segments It helps organization to decide how best to allocate its marketing resources and
activities among market segments in which it is already active.

Example : 
Example In Coca Cola, When Roberto Goizueta became CEO of Coca-Cola, many people
thought that Coke's sales were maxed out. Goizueta, however, reframed the view of Coke's
market share. He said Coca-Cola accounted for less than 2 ounces of the 64 ounces of fluid
that each of the world's 4.4 billion people drank on average every day. "The enemy is coffee,
milk, tea, water," he told his people at Coke, and he ushered in a huge period of growth.

Levels of market measurement : 

Levels of market measurement Consumer level Product level Geographic level Time level

Consumer level : 
Consumer level The consumer level of market measurement is the most popular level used as
it provides information on the number of final consumers defined in different market
segments For example, the consumer level of the market for potato chips would provide
measurement information on segments such as schools, sports meetings and private
households.

Product level : 
Product level As most markets are targeted by various formats of the same product, the
market measurement can also be expressed in terms of the total number of current buyers for
each product type. For Example, Product types for potato chips would, for example, be
divided into all sales of potato chips, sales of small packets (60 g) and sales of large bags
(150 g).

Geographic level : 
Geographic level The total market can be divided into geographical segments and it is thus
possible to express the market measurement in geographic terms. For example, Potato chips
can, for instance, be divided into sales for each of the provinces of country or for certain
climatic regions.

Time level : 
Time level A market measurement should also be specific in terms of the time of purchase
and provide information on the sales over different time periods such as monthly sales,
seasonal sales and annual sales. For example, Potato chips sales can be divided into sales in
different season in a region