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  • Sales Forecasting: Presentation Given By: Mohsen & Abbas

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    Mohsen Raza
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    This document discusses various methods for sales forecasting. It defines sales forecasting as estimating future sales over a specified period based on a proposed marketing plan and assumed market conditions. The document then outlines 8 steps in the sales forecasting process and identifies important factors to consider like competition, economic conditions, and product life cycle stage. It also describes different methods for forecasting like executive opinion, sales force opinion, Delphi method, users' expectation method, past sales projection, and various statistical methods. The goal of sales forecasting is to estimate future sales to aid in production, budget, and operational planning.

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    This document discusses various methods for sales forecasting. It defines sales forecasting as estimating future sales over a specified period based on a proposed marketing plan and assumed market conditions. The document then outlines 8 steps in the sales forecasting process and identifies important factors to consider like competition, economic conditions, and product life cycle stage. It also describes different methods for forecasting like executive opinion, sales force opinion, Delphi method, users' expectation method, past sales projection, and various statistical methods. The goal of sales forecasting is to estimate future sales to aid in production, budget, and operational planning.

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    72 views23 pages

    Sales Forecasting: Presentation Given By: Mohsen & Abbas

    Uploaded by

    Mohsen Raza
    This document discusses various methods for sales forecasting. It defines sales forecasting as estimating future sales over a specified period based on a proposed marketing plan and assumed market conditions. The document then outlines 8 steps in the sales forecasting process and identifies important factors to consider like competition, economic conditions, and product life cycle stage. It also describes different methods for forecasting like executive opinion, sales force opinion, Delphi method, users' expectation method, past sales projection, and various statistical methods. The goal of sales forecasting is to estimate future sales to aid in production, budget, and operational planning.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 23

    Sales Forecasting

    PRESENTATION GIVEN BY:


    MOHSEN & ABBAS
    Sales Forecasting
    It is the expected level of company sales
    Based on chosen marketing plan
    Assumed environmental conditions
    It is prediction of future sales potential

    (Philip Kotler)
    Sales Forecasting
     It is an estimate of sales during specified future period
     It is made according to proposed marketing plan
     Which assume particular set of uncontrollable and
    competitive forces

    (Cundiiff and Still)


    Process of Sales Forecasting
    1. Deciding Basic Issues
    2. Identifying Important Factors
    3. Selecting Suitable Methods
    4. Deciding Length
    5. Preliminary Sales Forecast
    6. Final Sales Forecast
    7. Making Operational Program
    8. Evaluation & Revision
    Deciding Basic Issues
     Period
     Geographical Market Area
     Availability of Time & Finance
     Single Product or Full Product Line
    Identifying Important Factors
     Level of Competition
     Economic Conditions
     Marketing Strategy
     Promotion Budgets
     Stage of product life cycle
     Government Policy
    Selecting Suitable Methods
     Nature of Product
     Available Finance
     Available Time
     Experience
    Deciding Length
     Short-term : Less than a year
     Medium-term : 1 year to 5 years
     Long-term : More than 5 years
    Preliminary Sales Forecast
     Data Collection
     Data Analysis
     Experience of sales staff
     Growth trends in sales
    Final Sales Forecast
     Preliminary
    sales forecasts are presented before top
    management
     After approval of top management, Preliminary sales
    forecasts become final sales forecast
    Making Operational Program
     Determination of production level
     Determination of sales budget
     Determination of sales quota
     Determination of sales territories
    Evaluation & Revision
     Actual Sales are compared with the estimated sales
     If considerable difference
     Then reasons are to be identified
     Corrective steps to be taken
    Method of Sales Forecasting
     Executive Opinion Method
     Experts Opinion Method
     Sales Force Opinion Method
     Delphi Method
     Users’ Expectation Method
     Economic Indicators Analysis Method
     Past Sales Projection Method
     Market Test Method
     Statistical Method
    Executive Opinion Method

     A committee of top level executives


     Each member gives estimate of future sales for a
    particular period
     Estimateis based on Information,Judgement &
    Experience
     Collective decision is taken after discussion
    Experts Opinion Method

     Outside Experts
     They have best knowledge of market condition taste and
    preferences of target, level of competition etc.
     They may be Technical consultant, Distributors, Market
    research firms, Advertising Agencies, Person working in
    Media, Wholesalers, Retailers etc.
    Sales Force Opinion Method
     Opinion of Salesmen & Sales Manager
     Each Salesmen gives estimate of sales
     Of his sales territory
     For a particular period of time
     Then individual estimate are combined
     Hence Sales Forecast of whole organization is made.
    Delphi Method
     Extension of expert opinion method
     Widely used in USA
     No committee/Panel is formed
     Opinion of sales expert are presented before other sales
    expert in a chain manner
     Last sale expert form final opinion about sales forecast
    Users’ Expectation Method
     It
    is also known as survey of customer method or user
    method or survey of buyers intention method
     Actual user of product are contacted
     They are asked to give their estimated purchase for a
    period of time
     Total of all users data is our estimates sales
    Economic Indicators Analysis Method
     Growth rate
     Inflation rate
     Government policy
     Repo rate
     Reverse repo rate
    Past Sales Projection Method
     Past Sales immediate previous year is taken as base
     Average sale of past few years may also be taken as base
     Certain percentage is added keeping in view
    1. Growth trends
    2. Future changes in marketing mix
    3. Level of competition
    Market Test Method
     Particular area of market is selected for test
     Compan5product is launched there
     Sales in test is recorded for particular area of time
     It is multiplied to the whole market area
    Statistical Method
     Trend Projections
     Regression Analysis
     Exponential Trend Method
    THANK YOU
    HAVE A NICE DAY

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