Thema Group
New Product Forecasting
"Prediction is very difficult, especially if it is about the future
…Nils Bohr
Email: info@Themagroup.ca
FAQs & More | Glossary
| Glossary | |
|---|---|
| Business Competitor | A company in the same or similar industry which offers a similar product or service. |
| Breakeven Analysis | The calculation of the point at which revenues equal expenses. A useful tool for determining at what point a new product or service will be profitable. |
| Demand Forecast | A forecast of what the market needs; i.e., the actual demand situation in the market. |
| Growth Stage | The second stage in the product life cycle. Growth can have several different patterns: constant growth, rising growth, declining growth, or logistics growth. |
| Market Research Process | A process that takes an initial estimate of market size and calculates the size of a specific market segment, known as the target market. The size of the target market is adjusted to reflect product life cycle, level of competition, and pricing and promotion strategies. |
| Product Life Cycle | The stages a product or service goes through from when it is first thought of until it is finally removed from the market. The main stages are introduction, growth, maturity, and decline. |
| Pricing Strategy | The practice of setting a price to a product or service that takes into account market segments, ability to pay, market conditions, competitor actions, and input costs. |
| Promotion Strategy | The practice of setting a strategy to inform, persuade, and influence consumer decisions with regard to the relative merits of a product or service. |
| Sales Forecast | A projection of achievable sales revenue. An estimate of what a business is capable of selling. |
| Seasonal Variation | Fluctuations in the demand for a product or service that correspond to changes in the season. Fluctuations that may result in changes to inventory, profits, cash flow, and sales volume.. |
| Sensitivity Analysis | Testing the impact of changes to pricing and/or promotion policy on the demand for a product or service. |
| Target Market | A particular group of consumers at which a product or service is aimed; i.e., consumers or organizations that are most likely to buy your product or service. |