Demand Forecasting

&
Market Potential Analysis
 Terms Used

• Market Potential / Industry Potential

• Company Potential / Sales Potential

• Market Demand / Industry Demand

• Company Demand / Company Sales Possibilities

• Market Forecast / Industry Forecast

• Company Forecast / Sales Forecast

 Anti Bacterial Soap

• Market Potential / Industry Potential 300 Lakhs

• Company Potential / Sales Potential 140 Lakhs

• Market Demand / Industry Demand 200 Lakhs

• Company Demand / Company Sales Possibilities 80 Lakhs

• Market Forecast / Industry Forecast 170 Lakhs

• Company Forecast / Sales Forecast 60 Lakhs

 Forecasting Demand / Sales

A very Difficult & Complex Exercise

‘About the future we can be certain of only three things

• It cannot be know with certainty!

• It will be different from what it is now!

• It will be different from what we expect it to be!’

- Peter Drucker
 Tasks
• Measuring Market Demand

• Current Market Demand

» Total Demand
» Area Demand

• Future Market Demand

• Forecasting Company Sales

 Period Range of Demand / Sales Forecasts

• Short-Range Forecast

• Long Range Forecast

• Perspective Planning Forecast

Methods used for Forecasting Sales / Demand
Analytical & Statistical Methods
Improving the Reliability of Sales Forecasting

• By Combining Methods

• Having an Efficient MIS

• Evaluating the sales forecasting system

from time to time

• Breaking down forecasts by territories and

time spans