Marketing Analytics Unit-1 MBA PTU

What is sales forecasting and why is it important?

• Sales forecasting is irrelevant to budget planning.

• Sales forecasting is important because it helps businesses plan for inventory, allocate resources, set budgets, and make informed strategic decisions.

• Sales forecasting is only useful for large corporations.

• Sales forecasting is primarily about predicting employee performance.

Define market share analysis and its significance.

• Market share analysis is significant as it provides insights into competitive positioning, helps in strategic planning, identifies growth opportunities, and informs marketing strategies.

• Market share analysis is irrelevant for small businesses.

• It is a method to determine customer satisfaction levels.

• Market share analysis only focuses on pricing strategies.

What are some key performance indicators for market performance?

• Employee satisfaction

• Profit margin

• Market share, sales growth, customer acquisition cost, customer lifetime value, return on investment (ROI)

• Brand recognition

Explain customer choice analysis and its relevance.

• Customer choice analysis is only relevant for large corporations.

• Customer choice analysis is crucial for understanding consumer behavior and optimizing product offerings.

• It focuses solely on pricing strategies without considering consumer preferences.

• Customer choice analysis is a method for predicting stock market trends.

What is customer profitability analysis?

• A method for tracking customer complaints

• An analysis of overall market trends

• Customer profitability analysis is the process of assessing the profitability of individual customers or customer segments.

• A strategy for increasing product prices

How do you calculate customer lifetime value?

• Customer Lifetime Value (CLV) = Number of Customers x Average Purchase Frequency

• Customer Lifetime Value (CLV) = Average Purchase Value x Average Purchase Frequency x Average Customer Lifespan

• Customer Lifetime Value (CLV) = Total Revenue - Total Expenses

• Customer Lifetime Value (CLV) = Average Customer Satisfaction x Average Purchase Value

What are acquisition and retention costs?

• Acquisition costs are profits from existing customers; retention costs are losses from new customers.

• Acquisition costs are the fees for customer service; retention costs are the costs of product development.

• Acquisition costs are expenses to gain new customers; retention costs are expenses to keep existing customers.

• Acquisition costs are marketing expenses; retention costs are the costs of acquiring new products.

What is product portfolio analysis?

• A technique for increasing product prices

• A strategy for reducing product variety

• A method for analyzing customer feedback on products

• Product portfolio analysis is a method for evaluating a company's product mix to optimize performance and strategic direction.

How can you forecast sales for a new product?

• Set sales goals based on company history alone

• Use only social media trends without data analysis

• Conduct market research, analyze similar products, and use quantitative and qualitative forecasting methods.

• Ignore customer feedback and rely on gut feeling

What is cannibalization analysis in product management?

• Cannibalization analysis determines the production costs of new products.

• Cannibalization analysis evaluates the impact of a new product on the sales of existing products to understand potential sales loss.

• Cannibalization analysis measures customer satisfaction with new products.

• Cannibalization analysis focuses on the marketing strategies of existing products.