2. A systematic attempt to probe future with the help of
known facts. It is the “analysis and interpretation of the
future conditions in relation to operations of enterprise.
Marketers argue about whether its a science or an art.
The short answer is that it is a bit of both.
2
3. Defining the objectives to be achieved.
And Dividing various products into homogenous groups.
Analyzing the importance of various factors to be studied for sales
forecasting.
Selecting the methods.
Collecting and analyzing the related information.
Drawing conclusions from the analysis made.
Implementing the decisions taken.
Reviewing and revising the sales forecasting from time to time. 3
4. Survey methods:
Based on the opinion of Expert opinion:
buyers & consumers. A company invites the opinions of
executives and consultants who
acknowledged experts in studying
sales trends.
4
5. Market test methods: Sales force opinion:
Its used for the changing Estimates the buyers
consumer behavior intention from experienced
prices,advertising,expenditure etc personnel in the sales force.
5
6. An essential element of It means estimating future
planning. sales on a systematic basis.
Significance of
Forecasting
Has assumed great importance in
the modern business world which
Almost every business is characterized by growing
executive makes sales competition, rapidity of changes
forecasting. in environment, fast technological
changes and increased
government control. 6
7. For reducing the area of
uncertainty that surrounds
management decision-
making with respect to cost,
production, profits, pricing,
etc.
Making and reviewing
on a continuous basis
For effective planning by will compel the
providing a scientific and
managers to think
reliable basis for Advantages ahead and to search
anticipating future
operations for the best possible
decisions with a
dynamic approach.
For efficient managerial
control as Forecast of sales
a must in order to control
the costs of production and
the productivity of
personnel 7
8. Managers often neglect
to examine whether the
forecasts are supported
by reliable information.
Managers must use their
All forecasts are subject knowledge, experience
to a degree of error and and available
they can never be made information with a great
with a hundred percent degree of skill and take
accuracy. care to make forecasts
more dependable.
LIMITATIONS
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