Sales forecasts are also useful to determine the optimum inventory level to carry. Companies in the petroleum industry closely monitor consumption patterns due to the fact that the price of crude oil changes everyday on the open market. Marketing managers should be more concerned about the product consumption of an item when the product in its introductory stage of the product life cycle. The longevity of the product is at risk during the introductory because if the product is not accepted by the public it is usually discontinued. In the retailing industry companies such as K-Mart are concerned about the consumption patterns of customers for particular brands in order to optimize the use of its shelf space. Products that have low sales should be taken off the shelves, while products with great sales numbers should be given greater exposure.
2. Do you think the company you work for or a company with which you are familiar would want a relationship with each customer? Why or why not?
Establishing a relationship with each customer is not a proposition that makes sense for companies in different industries. The problem with maintaining a relationship with all your customers is that it costs money to implement. Based on the accounting principle of materialism a company should not invest money in acquiring information when its costs outweigh the benefits. Getting information about the target market of the firm can be beneficial to the company. ...Show more