1. Why is the application of a Marketing Concept useful to a small business?

Because it allows small business to compete with well known, larger corporations and develop
marketing strategies that satisfy the needs of customers and accomplish the goals of the
business. It would also use for improvements in the quality of production. Allows to connect
with potential customers and inform them of all the services you offer. It boosts sales, helps
you construct a consist client-base, and helps you make you mark on the world.

2. How is the probable market share of a company determined?

To determine the company's market share, first determine a period you want to examine. It can be a
fiscal quarter, year or multiple years. Next, calculate the company's total sales over that period. Then,
find out the total sales of the company's industry. Finally, divide the company's total revenues by its
industry's total sales.

3. What are the various methods of forecasting? Discuss.

Qualitative Models

Qualitative forecasts can be thought of as expert-driven, in that they depend on market mavens
or the market as a whole to weigh in with an informed consensus. Qualitative models can be
useful in predicting the short-term success of companies, products, and services, but
has limitations due to its reliance on opinion over measurable data. Qualitative models include:

• Market Research: Polling many people on a specific product or service to predict how
many people will buy or use it once launched.
• Delphi Method: Asking field experts for general opinions and then compiling them into
a forecast.

Quantitative Models

These approaches are concerned solely with data and avoid the fickleness of the people
underlying the numbers. These approaches also try to predict where variables such as sales,
gross domestic product, housing prices, and so on, will be in the long term, measured in months
or years. Quantitative models include:

• The indicator approach: The indicator approach depends on the relationship between
certain indicators, for example, GDP and the unemployment rate remaining relatively
unchanged over time. By following the relationships and then following leading
 indicators, you can estimate the performance of the lagging indicators by using the
leading indicator data.

• Econometric modeling: This is a more mathematically rigorous version of the indicator

approach. Instead of if relationships stay the same, econometric modeling tests the
internal consistency of datasets over time and the significance or strength of the
relationship between datasets. Econometric modeling is applied to create custom
indicators for a more targeted approach. However, econometric models are more often
used in academic fields to evaluate economic policies.

• Time Series Methods: Time series use past data to predict future events. The difference
between the time series methodologies lies in the fine details, for example, giving more
recent data more weight or discounting certain outlier points. By tracking what
happened in the past, the forecaster hopes to get at least a better than average view of
the future. This is the most common type of business forecasting because it is
inexpensive and no better or worse than other methods.