This document discusses demand forecasting, which is the process of estimating demand for a product or service for a given period of time. It describes different types of demand forecasting such as short-term, mid-term, and long-term forecasting. Various methods of demand forecasting are also presented, including opinion poll methods like expert opinion, Delphi method, and market studies/experiments. Factors that influence demand forecasting are discussed as well, such as time factors, level of forecasting, market conditions, and product classification.

1. Presented By:
Susheel Kumar Tiwari
MBA (General) Ist sem.
Demand Forecasting
Presented to :
Dr. Monika Kashyap

2. What is Demand Forecasting?
 Demand forecasting is the scientific and analytical
estimation of demand for a product (service) for a
particular period of time.
 It is the process of determining how much of what
products is needed when and where.

3. Types of Demand Forecasting
Short-
Term
Mid-Term
Long-
Term

4. For planning and production analysis.
Sales forecasting.
Inventory control.
Long term investment plan.
Helpful for planners and policy makers.
Importance of Demand
Forecasting

5. Levels of Demand Forecasting
1. Micro level : demand forecasting by individual
business firm for its products and services.
2. Industry Level : Demand Estimated for the
product of the industry.
3. Macro Level : Aggregate demand forecasting for
industrial output at the national level. It is based
on the National Income/Aggregate Expenditure of
company.

6. Factors determining Demand
Forecasting
• Time factors.
• Level of forecasting.
• Problems & methods of forecasting.
• Classification of goods.
• Knowledge of different market Conditions.
• Other factors.

7. Methods of Demand Forecasting

8. Opinion poll Method
In this method, the opinion of the buyers, sales force
experts could be gathered to determine the emerging
trend in the market
The opinion poll method include:
1. Expert-opinion method,
2. Delphi method, and
3. Market studies and experiments.

9. Expert-Opinion Method
• In this method, the firm makes an effort to obtain the opinion of
experts who have long standing experience in the field of enquiry
related to the product under consideration. If the forecast is based
on the opinion of several experts then the approach is called
forecasting through the use of panel consensus.
• This method is quite simple and less expensive.
• Sales representatives are in close touch with consumers;
therefore, they are well aware of the consumers’ future purchase
plans, their reactions to market change, and their perceptions for
other competing products. They provide an approximate estimate
of the demand for the organization’s products.

10. Delphi Method
• The Delphi method requires a panel of experts, who are
interrogated through a sequence of questionnaires in
which the responses to one questionnaire are used to
produce the next questionnaire.
• The method is used for long term forecasting to estimate
potential sales for new products.
• Delphi technique can be used for cross-checking
information on forecast.

11. Market Studies &
Experiments
• Under this method, firms first select some areas of the
representative markets (three or four cities having similar
features, viz., population, income level, culture and social
background, occupation, choices and preferences of
consumers.
• Then, they carry out market experiments by changing
prices, advt. expenses, and other controllable variables in
the demand function under the assumption that other
thimgs remain same.

12. THANK YOU