what are some common forecasting problems
- not enough data on costs or demand
- biased internal attitudes
- basing forecasts on history
- poorly executed market research
- they can be very wrong
what is scorecard?
fit
- rate product based on technical fit
- product fit for company
- market acceptance fit
- financial risk assessment
product extensions have ___ risk but __ return
low, low
steps in product life cycle
- intro
- growth
- maturity
- decline
what stages of the product life cycle are sales constantly increasing?
between intro and growth
curve of sales equation
equation: Y = a+bx
what does a what if analysis require?
prototype
what is a what if analysis?
simulating different scenarios to predict the potential outcomes of marketing strategies or decisions
within expected value analysis, the riskier the product, the ___ the rate of the return
higher
what is the issue with expected value analysis?
hard to be accurate at new product beginnings
when to use expected value analysis?
- To quantify uncertainty and make informed decisions.
- To evaluate risks and rewards objectively.
- To choose the option with the best expected outcome over time.
what does net present value measure?
how much is it worth today?
what is new product diffusion?
not everyone adopts products at the same rate (innovators, early adopters, early majority, late majority, laggards)
When do you use the bass model?
use with completely new product adoption
what does the bass model estimate?
The adoption curve of a new product over time by considering two types of adopters: innovators and imitators.
peak sales, timing of peak sales
