MK 8324 SALES MANAGEMENT II

REVIEW QUESTIONS – SEMINAR QUESTIONS

LECTURE NO. 3: FORECASTING SALES AND DEVELOPING BUDGETS

1. Indicate what market factor or factors you would use to estimate the market potentials for each of the
following products: Toyota RAV 4, School textbooks, Pampus, Bodaboda, projectors, PCs and medical
insurances.
SOLUTION
Here are the market factors that could be used to estimate the market potentials for each of the following
products:
Toyota RAV 4: demographic factors such as age, income, and lifestyle, as well as market trends in the
automobile industry, and competition analysis.
School textbooks: the number of schools in the market, the level of government investment in education,
the population of students in the area, and competition analysis.
Pampus: demographics of potential buyers, market trends in the clothing industry, and competition
analysis.
Bodaboda: Demographics, Transportation infrastructure, Consumer behavior, Competition, Economic
conditions, Regulatory environment:
Projectors: demographic factors such as income and education level, trends in the education and
entertainment industries, and competition analysis.
PCs: the size and growth rate of the market, demographic factors such as age and income, and
competition analysis.
Medical insurances: the number of people with health insurance, the level of government investment in
healthcare, demographic factors such as age and income, and competition analysis.

2. After one year of market testing, the manufacturer of a new food product had sold 4,800 packages in the
test city of Dar es Salaam, Tanga. Assuming that the test market is representative of the whole nation,
determine national sales of the product.
SOLUTION
 National sales = (Test city sales / Population of test city) x Population of the entire country.
 Let's assume that the population of Dar es Salaam is 6 million, and the population of Tanga is 2
million. Therefore, the population of the test city is 8 million.
 National sales = (4,800 / 8,000,000) x Population of the entire country.
 Let's assume that the population of the entire country is 60 million.
 National sales = (4,800 / 8,000,000) x 60,000,000 = 36,000
Therefore, the national sales of the new food product would be approximately 36,000 packages.