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Sales Forecasting is the process of estimating what your businesss sales are going to be in the future. Sales forecasting is an integral part of business management. Without a solid idea of what your future sales are going to be, you cant manage your inventory or your cash flow or plan for growth. The purpose of sales forecasting is to provide information that you can use to make intelligent business decisions.
Types of forecasting
Macro forecasting is concerned with forecasting markets in total. This is about determining the existing level of Market Demand and considering what will happen to market demand in the future. Micro forecasting is concerned with detailed unit sales forecasts. This is about determining a products market share in a particular industry and considering what will happen to that market share in the future
Correlation techniques
This forecasting task is to predict the increase in sales given some marketing action as a sales promotion or advertising campaign. In this case, correlation techniques are used to compare how a change In one variable causes a change in another variable.
Qualitative techniques
These techniques are predicted on the idea that pattern in sales figures from previous time period will repeat. If forecaster doubts that assumption,qualitatives technique provides another forecasting tool. They tap into the expertise of people in the organization.
conclusion
As sales forecasting is the prediction of expected demand given a set of