Sales Forecasting
Sales Forecasting
Sales potential is larger than sales forecast.
Reason:-
• Company do not have sufficient production capacity to capitalize on full sales potential.
• No good distributive network.
• Limited financial resource.
• Company’s being more profit oriented than sales oriented.
Sales forecast is depended on how much amount of resources can sell if it implements a particular marketing programme.
Sales Forecast Methods:-
1) Qualitative method a) Expert’s opinion.
b) Survey of buyer’s expectation.
c) Sales Force composite.
d) Delphi technique.
e) Historical analogy.
2) Quantitative method a) Test Marketing.
b)Naïve method.
c)Trend method.
d)Moving average
e)Regression method.
f)Exponential smoothing.
1) Qualitative method –[/B] it based on judgments-expert/collective.
[B]a) Expert’s opinion method – Simplest method used in commercial organisation for forecasting future demand of product/service. Marketing professionals/channel members and professional bodies (market consumers) are asked to give their opinion method works in 2 days.
1) Seasoned industries.
2) Group of industries
Discussion takes place based on key executive sub their op. and discussion is done based on it and consensus is reached.
b) Delphi Method: - Improvement over expert opinion method forecast is based on likely time period of occurrence of certain future Group of exp and a Delphi coordinator. Gives their opinion include to co-ordinate. The co-or processes, complies, refers then back to the panel member. (Process is on for at least 3 rounds) Process stops when consensus is obtained and deviant opinion given with reason.
Coordinator carries out stats analysis of the response, deriving average answers, variability etc. Only coordinator is aware of the members present in the team and access to all responses. Delphi for is median forecast-Method widely used
c) Sale force composite method – Sales people come up with forecast. Since people in direct
Sales potential is larger than sales forecast.
Reason:-
• Company do not have sufficient production capacity to capitalize on full sales potential.
• No good distributive network.
• Limited financial resource.
• Company’s being more profit oriented than sales oriented.
Sales forecast is depended on how much amount of resources can sell if it implements a particular marketing programme.
Sales Forecast Methods:-
1) Qualitative method a) Expert’s opinion.
b) Survey of buyer’s expectation.
c) Sales Force composite.
d) Delphi technique.
e) Historical analogy.
2) Quantitative method a) Test Marketing.
b)Naïve method.
c)Trend method.
d)Moving average
e)Regression method.
f)Exponential smoothing.
1) Qualitative method –[/B] it based on judgments-expert/collective.
[B]a) Expert’s opinion method – Simplest method used in commercial organisation for forecasting future demand of product/service. Marketing professionals/channel members and professional bodies (market consumers) are asked to give their opinion method works in 2 days.
1) Seasoned industries.
2) Group of industries
Discussion takes place based on key executive sub their op. and discussion is done based on it and consensus is reached.
b) Delphi Method: - Improvement over expert opinion method forecast is based on likely time period of occurrence of certain future Group of exp and a Delphi coordinator. Gives their opinion include to co-ordinate. The co-or processes, complies, refers then back to the panel member. (Process is on for at least 3 rounds) Process stops when consensus is obtained and deviant opinion given with reason.
Coordinator carries out stats analysis of the response, deriving average answers, variability etc. Only coordinator is aware of the members present in the team and access to all responses. Delphi for is median forecast-Method widely used
c) Sale force composite method – Sales people come up with forecast. Since people in direct