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1. Estimate the current and future demand for one of the following items utilizing two different methods for current demand and two different methods for future demand as outlined in the textbook. Defend your answer with a detailed evaluation that is clear and insightful critical thinking
a. Car GPS navigation systems
b. Smart phones
c. Electric cars
d. E-readers
e. Juicers
f. DVRs
2. Your initial post should be 200 to 300 words in length, include two academic sources that are properly cited according to APA style.
Expert Answer
The current demand of smart phones can be estimated using various methods including total marketing demand, area market demand, and actual sales and market shares. The total market demand methods estimates the total volume of smartphones that would be bought by the defined consumer group in a given geographic area in a specific period of time. Total market demand of smartphones is not a defined number but it depends on the resources and marketing strategies of the marketing teams of the smartphones companies. The total market demand for smartphone is high and the demand has been increasing across the world.
The second method to determine the current demand for smartphones is estimating the area market demand. The marketers estimate the market potential for different markets and they employ the use of two methods which include market-buildup method and market factor index method (Mentzer & Moon, 2004). The market-buildup method is used mainly by business goods firms while market-factor index method is used by consumer goods firms. Therefore, the smartphone producers will estimate the current demand using market factor index to estimate the area market potentials.
The future demand for smart phones can be estimated using various methods including environmental forecast, industry forecast and company sales forecast. The environmental forecast method involves projection of the inflation rate, unemployment rate, interest rate, and government expenditures (McIntosh, Goeldner & Ritchie, 1995).
The next method is company sales forecast. The Smart phones companies use various sales forecasting techniques like survey of consumer’s intention, expert opinions, test markets, time series analysis, statistical demand analysis, and composite sales force opinion.
References
Mentzer, J. T., & Moon, M. A. (2004). Sales forecasting management: a demand management approach. Sage.
McIntosh, R. W., Goeldner, C. R., & Ritchie, J. R. B. (1995). Measuring and forecasting demand. Tourism: principles, practices, philosophies., (Ed. 7), 297-309.
