Published on Feb 03, 2016
It is detailed study of market potential performance to detect strengths and weaknesses. The gathering, classifying, comparing & studying of company‟s sales data, strictly speaking, gathering of sales data is not a part of analytical effort s but it substantially and vitally affects the quality of market potential.Market potential provides additional information. For example that the increased sales volume came from product carrying a lower than average gross margin.
Through sales analysis, management seeks insight on strong and weak territories, high volume, low volume products and type of customers providing satisfactory and unsatisfactory sales volume. It uncovers details that otherwise lie hidden in the sales record. It provides information that management needs to allocate sales efforts effectively.
If sales management relies on the raw data, the result may be misleading. It depends solely on summary of the sales data. It has no way to evaluate the effectiveness of its own activities and those of the sales force if we say that sales have gone up by 5% over previous year‟s with 1% decline profit.
Market potential provide the management with additional information make an in-depth study of why the margin is insufficient though sales management seeks insight on the sales territories with the most satisfactory and the least satisfactory sales volume .Market potential will then uncover significant details why it is so. It provide necessary information, management need in order to allocate future sales effort effectively. The role of sales manager in market potential is to make a detailed analysis of the available data ad use them properly to initiate action.
Objectives of the Study
In Today‟s competitive market, every company wants to know the reasons how one can have the potential market, which factors enhance the sales & shape the buying motives of the Drugs (Inhaler) system. The said information will be much useful for devising potential market & shaping buying decisions of customers. This research is also devoted towards estimating market share & buying motives for increasing sales of the Cipla‟s Asthalin Inhaler.
The research objectives to be studied in this research are as follows:
1. To study the various product range & forms of Asthalin..
2. To study the market potential of Asthalin to other similar products of Cipla‟s competitors.
3. To study the customer buying motives towards Asthalin.
4. To study the market share of Asthalin.
As per the objectives under study, the following research work will lead to the following results :-
1. Cipla‟s Asthalin comes in various formsas per the consumers convenience like Inhaler, Rotahaler.
2. Consumers show positive buying attitude towards Asthalin than other similar products.
3. Asthalin has huge market share in Buldana district.
4. Consumers are very much satisfied with the Asthalin‟s results.
The sample selection process requires the form of sample be specified. For this purpose, researcher has subjectively decided which particular group will be part of the study. In a sample survey a small part of the entire population is subjected to the research. This sample is considered to be the true representative of the entire universe and decided upon certain criteria.
The sample size has been kept to 100 as it was considered large enough to reliable result. The sampling procedure is Simple random sampling within Cluster sampling. The data is to be collected from 04 clusters namely Shegaon, Khamgaon, Malkapur & Buldana. Out of 100 respondents, 40 Pharmacists, 40 Customers comprising 10 from each cluster & 20 Doctors comprising 5 from each cluster are selected for this survey which truly represents the area under study. After the sample size is decided, the next step was to meet the respondent personally and to collect data from them through personal interviews. Data was collected in the form of Response to the well framed Questionnaire from all the 03 players in the market viz. Doctors, Pharmacists & actual customers.
How market potential is Estimated ?
Data for market potential : Market potential is nothing but to collect, classify, study the company sales data. Collection of data is not part of analytical part, but it vitally affect the quality of the sales analysis. Market potential is generally based on data already in existence. It is called secondary data. Secondary data may be gathered either from internal sources such as invoice or shipping records or from external sources such as marketing research agencies, government agencies, trade association and trade journals. Secondary data are often readily available but their use should be with caution. The sales management has to rearrange them according to their needs.
Some companies maintain their internal sales records in some detailed manner showing individuals sales, sales by products, by classes of customers, by size of order and other pertinent break downs of sales data. Data are sometimes especially collected for the purpose of finding the market potential. This may be called primary data and may be collected under the control of sales management according to its needs.
The main purpose of market potential is to convert raw sales data into actionable information for sales manager. The process involving editing, tabulating and cross tabulating and also breaking them down into various way to make them comparable. A number of comparisons are possible such as:
1. Current data can be compared with the past result measuring trend over the years.
2. Current results of different territories, product or class of customers can be compared with each other.
3. Internal performance data can be used for compared with each other .Different ratio and percentages or variances can be used for comparison purposes. The final step in the analysis process is interpretation or drawing conclusion from the compiled data.
When the sales planning is done, the sales manager finds out the potential market. Sales manager collects the information and analyses it and then compare the actual one with standards. An evaluation program review both the nature and extend of sales force efforts and influence of external variables, once the degree of influence of controllable and uncontrollable factors are determined. Sales management can decide whether to corrective action or to revise the sales plan or both.
Market Potential Analysis:
This is an important aspect of marketing since one has to do market research related to their industry product which can be business to consumer or business to business. Market potential is basically carried out to know the strength in the industry also to allocate the target to the sales force based on optimum market research which normally includes the customer requirement, there expansion plans, investment etc. With optimum information sales manager knows the amount of investment a company is going to make for the coming years. Based on this authentic information a company can take steps.
Before going for market potential analysis you need to initially know on which products you are carrying out market potential and then go for it. Market potential is carried out by visiting to your customer or consumer site asking them questions about your products.
Most important thing to note is market potential is very essential for the company, so it should be carried out seriously and effectively. Now biggest question arises that what you will be asking. You know market potential basically gives company position in the market by finding how many players are there in the Anti-Asthmatic Pharma Drugs market and finding who all are their customers. Now to know about company's future position you need to ask what are your future plans, investment, expansion plans, and accordingly you need to arrange data and handed over to marketing department they will be deciding about allocating the targets to sales force .
Chunawalla S A., Commentry on Consumer Behavior, Himalayan Publishing House,2005.
Leon G. Schiffman & Leslie Lazar Kanuk, Consumer Behaviour, 9th Edition, Peayon Prentice Hall, 2007.