The paper illustrates how techniques, developed for monitoring sales of one 'fast-moving' product - petrol - have been adapted and translated to another 'fast moving' product - gramophone records - within the retail environment as a result of technical innovation. It is not intended that this method will wholly replace the diary system for all shops, but that it shall be used in those outlets in which a diary is not totally suitable. The importance to the research operation is to improve the representation of the sample and to make the operation even more robust by expanding the data base.
One of the most important and, at the same time, one of the most difficult problems of marketing is an efficient marketing budget allocation on the instruments of sale. The present study is aiming to do just that. 'Market Mechanics 2' ('MM2') is examining some of the most important variables which influence the market trends of fast moving consumer goods. We developed a partial model, that explains the market trends by calculating the effectiveness of the most important marketing variables on the basis of empirical data, i.e. advertising, mediamix, pricing, changes in prices, promotions activities, distribution and changes in distribution.
One of the most important and, at the same time, one of the most difficult problems of marketing is an efficient marketing budget allocation on the instruments of sale. The present study is aiming to do just that. 'Market Mechanics 2' ('MM2') is examining some of the most important variables which influence the market trends of fast moving consumer goods. We developed a partial model, that explains the market trends by calculating the effectiveness of the most important marketing variables on the basis of empirical data, i.e. advertising, mediamix, pricing, changes in prices, promotions activities, distribution and changes in distribution.
The author has been asked to raise some points about magazine circulation, about the marketing of magazines as fast-moving consumer products and - most importantly - about the current role and possible future role which marketing research plays, or could play, in all this.
Market researchers have long been arrogant enough to believe that market research can find ideas for new products and market segmentation techniques have often been advocated for this purpose. Yet research has proved not cost effective in the initial new product search for the following reasons: 1) consumers are not bristling with needs and do not know what they like till they see it; 2) segmentation techniques have been expensive and difficult to interpret; 3) the results have usually been obvious or not actionable. Criticism of research in idea generation does not remove its need for validation. Following identification of the market opportunity, search for a concept and development of shortlisted concepts, research is most useful in testing the developed concepts which should ideally include a representation of the product and the packaging. If the approach outlined is accepted, there is clearly need for much reorganisation both among clients and among market research organisations. Market research should be more closely integrated into the marketing and financial process of new product development and should be assessed entirely on its cost effectiveness.
The study I am reporting on is meant to bridge the gap between the conceptual systematics of export marketing research, as found in textbooks, and concrete marketing analysis. This study was developed purely as a model of instruction, if served no economic purpose. The study was conducted in 5 EEC countries, in France, Holland, Belgium, Italy, and the Federal Republic of Germany. The Committee chose the market for vacuum cleaners as a reference model. Its purpose was to show to wide circles interested in multi-national studies - how an intensive marketing analysis must be pursued methodically; - the sort of questions market research can and cannot give an answer to; and efficiency and information value of various survey techniques.
Lack of distribution can be a major cause of new product failure. But, what constitutes "adequate" distribution, and how should the manufacturer set about obtaining it. This is the subject of this paper presented in three closely-linked sections : 1. An historical review of the distribution levels achieved by 29 new food products launched nationally between 1962 and 1967 in the United Kingdom. This is mainly based on Nielsen data; 2. Why some products fail to achieve adequate distribution. This section is largely based on a pilot survey in ten large United Kingdom retail or multiple groups at Head Office buyer level. This survey was initiated by Benton & Bowles Ltd. , and carried out by Hurdle and Trew, an independent research organisation; 3. The use of sales promotion techniques to achieve initial distribution and improve it through the critical first year of the new products life. Throughout the paper we are referring to fast-moving grocery products and not to consumer durables.
A system of drawing up medium-term sales forecasts has been developed for the range of a large concern in the food industry and is intended to form part of the integrated operations planning in the logistic sector. The forecasts in this system are based on a break-down of sales volume into the following components: - level of sales; - trend; - seasonal influence; - special influences (promotions, price changes, movable feasts, etc.). Basic values for the various components are determined from past values. The forecasts of weekly sales in the stipulated period (6 months) are based on these values. The basic values are adjusted from week to week as new historical sales data become available. Basically, the exponential smoothing method is used to determine sales level, trend, and factors for seasonal and special influences. A pragmatic procedure is used to adapt the smoothing constants. The most important aim was a complete forecasting system. The system consists of a series of computer programmes which at present are run on an IBM/360-50. It contains an analysis of past data, the forecast and the up-dating of data. The output is such that the person responsible, the product manager, is able to control and correct the system. We are fully aware that this system and the methods being applied are capable of being improved. Apart from this, however, we believe that there are several basic difficulties in drawing up sales forecasts which will hardly be obviated by means of improved systems or methods. In particular, there are the well known problems connected with the quantitative forecasting (quantification) and the temporal forecasting of the various factors affecting sales. The quality of the forecasting system presented here was examined in a test involving selected products over the whole of 1968.
A system of drawing up medium-term sales forecasts has been developed for the range of a large concern in the food industry and is intended to form part of the integrated operations planning in the logistic sector. The forecasts in this system are based on a break-down of sales volume into the following components: - level of sales; - trend; - seasonal influence; - special influences (promotions, price changes, movable feasts, etc.). Basic values for the various components are determined from past values. The forecasts of weekly sales in the stipulated period (6 months) are based on these values. The basic values are adjusted from week to week as new historical sales data become available. Basically, the exponential smoothing method is used to determine sales level, trend, and factors for seasonal and special influences. A pragmatic procedure is used to adapt the smoothing constants. The most important aim was a complete forecasting system. The system consists of a series of computer programmes which at present are run on an IBM/360-50. It contains an analysis of past data, the forecast and the up-dating of data. The output is such that the person responsible, the product manager, is able to control and correct the system. We are fully aware that this system and the methods being applied are capable of being improved. Apart from this, however, we believe that there are several basic difficulties in drawing up sales forecasts which will hardly be obviated by means of improved systems or methods. In particular, there are the well known problems connected with the quantitative forecasting (quantification) and the temporal forecasting of the various factors affecting sales. The quality of the forecasting system presented here was examined in a test involving selected products over the whole of 1968.
This paper is concerned with management decisions about marketing in the consumer goods industries; and particularly with non-durables (e.g. food, drink, tobacco, household necessities) which account for a large share of total marketing activity in free enterprise societies. Illustrative decisions discussed are concerned with: - Product development policy; - Advertising policies (level of expenditure, choice of media and copy); - Sales promotion and selling policies. I should make it clear that in this paper I am trying to describe the essence of a range of considerations making up the practical background for using research in marketing decisions, and am not describing the practice of any single company.