Page 41 - DMGT209_QUANTITATIVE_TECHNIQUES_II

Quantitative Techniques-II

Notes 2.9.2 Preparing a List of Needed Information

Assume that company 'X' wants to introduce a new product (tea powder). Before introducing
this product, it has to be test marketed. The company needs to know the extent of competition,
price and quality acceptance from the market. In this context, following is the list of information
required:
(a) Total demand and company sales

Example: What is the overall industry demand? What is the share of competitors? The
above information will help the management estimate the overall share and its own share in the
market.

(b) Distribution coverage

Example:
(1) Availability of products at different outlets.
(2) Effect of shelf display on sales.
(c) Market awareness, attitudes and usage

Example:
"What percentage of target population is aware of the firm's product"?
"Do customers know about the product"?

"What is the customers' attitude towards the product"?
"What percentages of customers repurchase the product"?
(d) Marketing expenditure

Example: "What has been the marketing expenditure"?
"How much was spent on promotion"?
(e) Competitors' marketing expenditure

Example: "How much did the competitor spend to market a similar product"?

2.9.3 Decision on Research Design

Should the research be exploratory or conclusive?

Exploratory research:

Example: "Causes for the decline in sales of a specific company's product in a specific
territory under a specific salesman".
The researcher may explore possible reasons as to why sales are failing.

 Faulty product planning
 Higher price

36 LOVELY PROFESSIONAL UNIVERSITY