Question

1. Automatic Data Processing, Inc. (ADP) handles payroll and tax-filing processing for more than 300,000 customers. In other words, firms outsource these functions to ADP. Suggest possible segmentation bases that ADP might employ in this ser- vice market. What criteria would be important to organizational buyers in mak- ing the decision to turn payroll processing over to an outside firm?

2. Sara Lee Corporation derives more than $1.5 billion of sales each year from the institutional market (for example, hospitals, schools, and restaurants). Explain how a firm such as Sara Lee or General Mills might apply the concept of market segmentation to the institutional market.

3. CompareandcontrastthesalesforcecompositeandtheDelphimethodsofdevel- oping a sales forecast.

4. As alternative methods for demand forecasting, what is the underlying logic of (1) time series and (2) regression or causal methods?

5. What features of the business market support the use of qualitative forecasting approaches? What benefits does the business market analyst gain by combining these qualitative approaches with quantitative forecasting methods?

Answer 1

Following is the answer to question 1

e company would Anis ADP would utilise more of bases for theire service because their service machosegmentation is not differentiated by diffuseatistöed by consumere they offer the Serwice belgardless of the consumate they are working with Security would definitely be a major point when making the decision to twin to a payuoll processing service the have to trust outside from with their employce Mecouds, and company manly money, Another important criteria sucould be sceliablity because a lot of companies who this service issue of paychecks eel these payeséske would need to be reliable and accurate. Most time companies utilise a service like this because they keep up with doing it themselves, so they must be able to trust this company large amount of the کی И9 longer can