This document discusses sales forecasting methods. It defines sales forecasting as estimating future sales according to a proposed business plan. There are qualitative and quantitative methods. Qualitative methods rely on human expertise and include jury of executive opinion and sales force opinion. Quantitative methods include time-series analysis using trend, seasonal, and cyclical analysis, as well as causal methods like regression analysis. Accurate forecasting allows businesses to systematically plan production levels and cut wasteful spending.

1. Sales Forecasting and its Methods
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By-
MITHISAR

2. Sales Forecasting
It is the process of estimating future sales.
According to American Marketing Association,
“Sales forecast is an estimate of Sales, in monetary
or physical units, for a specified future period under
a proposed business plan or programme and
under an assumed set of other forces outside the
unit for which the forecast is made.”
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3. IMPORTANCE OF SALES
FORECASTING
 Enables a business organization to work systematically.
 Enables the production manager to set target for his workers.
 Helps to determine the production capacity that is actually required.
 Helps to cut down wasteful expenditure.
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4. Steps of Sales
Forecasting Process:
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Setting Goals for
Forecasting
Gathering Data
Evaluation of
forecasting
outcomes
Analysis of Data
Forecasting
Choosing the
best model for
forecasting

5. SALES FORECASTING
METHODS
QUALITATIVE METHODS
QUANTITATIVE METHODS
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6. QUALITATIVE FORECASTING
METHODS
Qualitative Methods are primarily subjective and rely on human
expertise and judgement.
Different qualitative techniques are:
 Jury of Executive Opinion
 Sales Force Opinion
 Test Marketing
 Consumers’ buying Plan
 Delphi Method
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7. QUANTITATIVE FORECASTING
METHODS
Time-Series
◦ Trend Analysis
◦ Seasonal Adjustment
◦ Cyclical Analysis
◦ Random Components
◦ Decomposition
◦ Graphical method
◦ Econometric Modelling
◦ Lifecycle Modelling
Causal
◦ Regression Analysis
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8. LIMITATION
The Tastes and preferences
Economic conditions
 Political conditions
Entry of competitors
Progress in science and technology
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9. Thank You
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