NDEJJE UNIVERSITY

FACULTY: BUSINESS
COURSE UNIT: PRINCIPLE OF MARKETING
NAME: AYOZU GRACE
REG NO: 21/1/212/D/634
TASK: INDIVIDUAL COURSE WORK
COURSE: DBA
NAME OF THE LECTURER:
Question:
Digital innovation, technology and changes in consumer spending have given online
boutique owners an edge against the big players. No longer can corporate retailers
dominate sectors and swallow up online businesses.
Millicent plans to start up an online boutique with a capital of five million(ug). She plans on
offering products to women between the ages of 20-30. Her major supplier is a company
from china.
a) As a guru in marketing, analyse the three factors that Millicent can apply when
evaluating different market segments.
b) Explain how Millicent can use different methods of forecasting sales to allocate
resources.
PART (a)
Analysing key words;
Digital innovation; this is the use of digital technology and application to improve existing
business processes and work force efficiency, enhances customer experience, and launch
new products or business model.
Digital technologies; are electronic tools, system, devise are resources that generate, store
or process data. Well known example is the social media, online games, multimedia, and
mobile phones.
Market segment; this refers to a group of people who share one or more common
characteristic lumped together for marketing purpose.
bellow are the factors that Millicent can apply when evaluating different market segments
and these includes the following;
 Segment size and growth. The business must fast collect and analyse data on current
segment sales, growth rates and expected profitability for the various segment. It
will be interested in segments that have the right size and growth characteristics. But
“right size and growth” is a relative matter. The largest, the fastest-growing segment
are not always the most attractive ones for every business. A small business may lack
the skills and resources needed to serve a larger segment or they may find this
segment too competitive. Such businesses may target segments that are smaller and
less attractive, in an absolute sense, but that potentially more profitable for them.
 Segment structural attractiveness; she needs to examine major structural factors
that affect the long-run segment attractiveness, for instance the segment is less
attractive if it already contains many strong and aggressive competitors. The relative
power of buyers also affects segment attractiveness, that is to say buyers with strong
bargaining power relative to sellers will try to force price down. Finally, the segment
may be less attractive if it contains powerful suppliers who can control prices or
reduce the quality or quantity of ordered goods and services.
 Company objectives and resources; even if a segment the right size and growth and
is structurally attractive, Millicent must consider its objectives and resources. These
objectives should be ambitious, measurable and realistic. For instance, achieving
financial, she must set up a clear financial objective to emphasize the financial
targets of the business. Improving human resources, to operate effectively, she must
hire talented employees who implement her decision and maintain productivity and
efficiency. Human resource covers organisational structures and employees’
relations this also covers the employees training and development goal of the
business. Another objective is she must establish brand awareness, in the age of
social media marketing, many small businesses are finding that brand marketing is
another vital objective.
Ref:
https://.manualofmarketing.blogs.com
B] These are the different methods that Millicent can use in forecasting sales to allocate
resources and these includes the following;
The user expectations method [also known as survey of buyer intentions]. It relies on
answers from customers regarding there expected consumption all purchases of the
product. User expectations method of forecasting sales may provide estimates closer to
market or sales potentials than sales forecasts.
Sales force composite method; The sales force composite method of forecasting is based on
collecting an estimate from each sales person of the products and /or service they expect to
sale in the forecast period. These may be made in consultation with sales executives and
customers or based on the sales persons intuition and experience,
The jury of executive opinion; This method consists of obtaining the views of top executives
regarding future sales. Some executives may have used other forecasting methods to arrive
at their opinions while others may form their opinions largely by observation, experience
and intuition.
Delph Technique’; This is where little experts make initial predictors that are circulated to
other experts in the group. Then the forecasts are collected and a summery is prepared by
the person supervising the process. Those whose initial fell outside the midrange are asked
to explain their initial positions
Market test; This involves placing samples of products in several representative areas to see
how well it performs, often this is done for a new product or an improved version of an old
product. Many firms consider the market test to be the final gauge of consumer acceptance
of the new product. Market test can therefore be a highly successful sales forecasting
technique but one that should not be used
Time, series analysis; This relies on the analysis of historical data to develop a prediction for
the future. The sophistication of these analyses can vary widely. Three of these methods
moving averages exponential smoothing and decomposition.
Ref:
Kotler Phillip and Keller L.K(2008): Marketing management,11 th edition, prentice hall.