From Wikipedia, the free encyclopedia Volume projections
Volume projections
large population on the basis of simulated test markets,
Volume projections enable marketers to forecast sales by or even full-fledged regional rollouts. Marketers have de-
sampling customer intentions through surveys and mar- veloped various solutions to increase the speed and re-
ket studies. By estimating how many customers will try duce the cost of test marketing, such as stocking a store
a new product, and how often they’ll make repeat pur- with products (or mock-ups of new products) or giving
chases, marketers can establish the basis for such projec- customers money to buy the products of their choice. Th-
tions. Projections from customer surveys are especially ese simulate real shopping conditions but require specif-
useful in the early stages of product development and in ic models to estimate full-market volume on the basis of
setting the timing for product launch. Through such pro- test results.[1]
jections, customer response can be estimated without the
expense of a full product launch. In a survey of nearly 200
senior marketing managers, 56 percent responded that
Construction
they found volume projections very useful.[1] Volume projections combine trial volume and repeat vol-
ume, that is:
Total volume (#) = Trial volume (#) + Repeat volume
(#) [1]
Purpose
When projecting sales for relatively new products, mar-
keters typically use a system of trial and repeat calcula-
References
tions to anticipate sales in future periods. This works on [1] ^ Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer;
the principle that everyone buying the product will ei- David J. Reibstein (2010). Marketing Metrics: The
ther be a new customer (a “trier”) or a repeat customer. Definitive Guide to Measuring Marketing Performance.
By adding new and repeat customers in any period, we Upper Saddle River, New Jersey: Pearson
can establish the penetration of a product in the mar- Education, Inc. ISBN 0137058292.
ketplace. It is challenging, however, to project sales to a
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