Market Segments and Sales Forecasting – Assignment Example
The paper "Market Segments and Sales Forecasting " is a wonderful example of a marketing assignment. Markets will be defined by behavioral segmentation because the purchase of artwork relies on a very specific need. The criteria analyzed for choosing market segments includes who buys the images produced by the artist, what they need, and how often they purchase the artwork. The largest buyers of imagery, such as advertising firms and businesses, make up a significant portion of the market, while smaller purchasers, usually in a non-commercial context —such as art collectors or bloggers who require image content— make up a slightly smaller percentage of the available market. Other criteria that will be considered is the frequency and sustainability of each market: while the need for ornamental art might be erratic, a long-term advertising campaign would provide a much more stable demand and is, therefore, a more profitable market. Related products can be grouped initially into “commercial” and “non-commercial.” Commercial products are mostly composed of advertising and similar artwork, which can be further broken up into long-term advertising campaigns, singular advertisements, and miscellaneous items. Non-commercial products would include decorative artwork and illustrated content. Products are defined mostly by the need for the products that are produced by the aforementioned artist. Purchasing habits, as dictated by influences such as socioeconomic status, demographics, location, and other psychologically-influenced factors will also be taken into account. The commercial art would mostly be targeted at business and advertising agencies. As the artist in question has a degree, he is, therefore, more likely to be hired by an advertising agency or business for long-term campaigns. This makes long-term campaigns the most profitable market, as individual art for businesses can be sporadic. Also, singular advertisements are not so dependent on the stipulation that the artist has a degree, making it a less-profitable, though still primary, market. Ornamental and content-based artwork will be a secondary market. Ornamental artwork and content-based artwork can be sold to individuals. The price range required in order to make decorative artwork profitable as primary limits the market to wealthier individuals, but as a secondary market, there is the opportunity for smaller works to be offered to culturally-aware individuals throughout the upper- and middle-class. Also, there is significant competition in this field, which makes it a less profitable market. Content-based artwork, which includes web-based art such as art for webcomics, also has a low profitability with high competition. The business (in this case, the artist) will be marketed as a unique commodity, even more than the associated products. The artist creates the context of their work, and even if their images are reproduced, they still represent a unique collective of experience (ie. “Southwestern artist”) and a constantly evolving producer of artwork. Market size will be discerned based on several factors: profitability, competitiveness, and distribution plausibility. While it is profitable to sell cosmetic art, there is a lot of competition for it, and the distribution is difficult. Meanwhile, though the internet provides easy distribution, the solely web-based medium does not always provide steady money. As time passes, however, the demand of the specific artist's work will likely change. As the artist becomes more recognized within certain circles, the concentration of their products must be reevaluated. Should shifts be observed in the demand of any of the different related products, market size will be adjusted to accommodate the difference in income. Sales forecasting methods will include questioning inventory requirements, making sure there is sufficient distribution, and watching the market for slumps and jumps during specific times of a year or in certain demographics. Though the market segments aren't specifically based on demographics or psychological behavior, these factors should still be monitored for their impacts on the market. As time goes on, forecasting will grow to include past sales and profits, adjusted to account for inflation and the shifts in the domestic and international economy. Analyzing inventory requirements is important because it allows for better time management on the part of the artist. Observing the market for leaps or falls in the purchase of images serves the same function. Demographics and psychology, though secondary factors remain relevant to the market, as they influence the behavior on which the segments are based. As the artist is the crux of the business, their images will have the opportunity to evolve. Should the behavior of the buyers indicate a stronger preference towards ornamental art, for instance —perhaps the artist gains recognition as a painter of landscapes— the artist will have an opportunity to develop a specific signature style, which will drastically alter the perception of the business? This will allow for the growth of the business and associated products in order to be more profitable.