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Demand Finance Management

measurement
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October 2, 2006 / Sales/Marketing Management
Human Resource
DEMAND MEASUREMENT Management (3,935)
Operations
Terms commonly used in Demand Management (1,202)
Measurement/Sales Forecasting Sales/Marketing
Management (2,249)
Let us first explain certain expressions that are
commonly used in relation to demand measurement
and sales forecasting.
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· Market potential (or industry potential)

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· Company potential (or sales potential)
· Market demand (or industry demand) Delays in hiring: When
· Company demand (or company sales your dream offer takes
possibilities) ages to reach you !
· Market forecast (or industry forecast) Hiring for
· Company forecast (or sales forecast) Competencies or
Credentials?
Market potential is a quantitative estimate of the Termination on No-

total possible sales by all firms selling the same Show after Maternity
Leave
product in a given market. It gives an indication of
Re-booting your career
the ultimate potential for the product for the industry
after a sabbatical
as a whole, assuming that the ideal marketing effort
Managing office
is made.
romance when it turns
stale
Company potential refers to a part of the market Dual Employment or a
potential; what an individual firm can achieve at the Part-Time Job
maximum in a given market; again under ideal How to build a team
conditions and on the assumption that the ideal after all your employees
marketing effort is made. leave?
Attrition : Is there any

Market demand and company demand refer to those solution to it ?

What happens when
portions of ‘market potential’ and
HR makes you declare
‘company potential’ that are achievable under
fake experience in writing
existing conditions.
Managing Talent-
Experience as a Vendor
Market forecast is narrower in scope in comparison
How to turn around
to market demand. It refers to that part of the market
Late-Reporting to office?
demand that will materialize with the level of Exit Formalities : When
marketing effort the industry will put in during the your employer is not ready
period of the forecast. to relieve you from your
services!
Company forecast means the sales forecast of the How to survive when
company. It refers to that portion of the company your role is soon to be
demand, which the company expects to capture with eliminated ?
the chosen marketing effort. What happens when an
Open-Door meeting goes
It can be easily seen that ‘company potential’ wrong?
is just a part of ‘market potential’ company An Year-End-Review

demand’ is just a part of ‘market demand’, Red Flag a New Hire:

and ‘company forecast’, is just a part of Do’s and Don’ts

How to Run An
‘market forecast’.
Effective Conference
How to create a perfect
Forecasting demand / sales, A Complex Exercise
profile to land the dream
job
Forecasting demand/ sales is normally a difficult
Gambling Versus
and complex exercise. Peter Drucker the well known
Investing – The Ins And
management expert said that about the future we
Outs
can be certain of only three things.
Why Training Programs
don’t impact Business
· It cannot be known with certainty! Objectives? – Thought
· It will be different from what it is now! Paper
· It will be different from what we expect it to be!

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One has to appreciate the complexity inherent in
sales forecasting. Appraisals Attrition

Background verification
A Twin Task
BPO Budget Business

Business Growth
It is obvious that two separate, though related, tasks
are involved here. Career management

Career progression
1. Measuring market demand. Change management
2. Forecasting company sales.
communication

compensation and benefit

This is so because firms need to assess two entities:
culture decision making
demand and sales i.e. market demand and company
sales. employee morale

employee satisfaction
Measuring Market Demand growth hiring

HR Champion
Firms need to assess,
Human resource

(i) Current market demand implementation Internet

(ii) Future market demand. Interview Job leadership

leadership development
Measuring Current Market Demand
marketing motivation

office politics
Here again, firms need to assess
organizational development

a. Total demand. organizational growth

b. Area demand. organization development

people management
Measuring area market demand:
performance management

personal excellence
Area market demand refers to the demand within a Personal leadership
particular city, district, state, zone, or country. The development

two main methods used for estimating area market recruitment

demand are: the market-buildup method and the reference check sales
market –factor index method. The market-build up Social media Strategy
method calls for identifying how many potential
Talent management
buyers there are in each market and estimating the
termination
size of their potential purchases. The market-factor
tips for interviewers
index method identifies market factors that correlate
with market potential and then combines them into a training and development

weighted index, such as the index of buying power.

RELATED POSTS
Forecasting future market demand

Macroeconomic Policy
In forecasting future market demand too, we have Important points on
two components: forecasting total demand and plant location
forecasting area demand. Once total demand is Operating cost
forecast, area demand can be forecast, using the increase with time with
same principles as in the case of measuring current temporary improvements
demand. The Investing
Institutions
Forecasting Company Sales Indians now taking
over as CEO of Global
Now let us turn to company sales. Here, current Organizations
company sales are already known from internal Radio Frequency
records. So, firms need to find out/forecast only the identification (RFID)
Legal provisions under
likely sales in a future (specified) period.
companies act
Avoid getting
This is what one means by the familiar term, sales
distracted
forecasting. The sales forecast indicates how much
Globalization and
of a product is likely to be sold during a specified
Competitiveness
future period in a specified market, at specified
Innovation remains a
prices.
high strategic priority in
the current economic
To sum up all business firms would like to know the turmoil.
current as well as the likely demand for their
products. More specifically, they would like to know
how much of a given product they would sell in a
given market in a given period; whether the sales
would increase or decrease from the current levels
and by how much; and what would be their market
share. This knowledge is very essential for a firm.
Without this knowledge, it cannot plan any of its
activities. Demand measurement and sales
forecasting provides this vital knowledge. In this
article we have briefly outlined above various
aspects of ‘Demand Measurement’
considering its importance for the industry /
business firms.

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