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Sales Forecasting - Why is it necessary?
To raise the necessary cash for investment and operations to establish capacity and output levels to acquire and stock the right amount of supplies to hire the required number of people
A set of all actual and potential buyers of a product or service Potential Market A set of consumers who profess a sufficient level of interest in a product or service
A set of consumers who have interest , income and access to a particular product or service
Qualified Available Market
A set of consumers who have interest, income, access and qualifications for the particular product or service
Part of the qualified available market the company decides to pursue
A set of consumers who are buying the company¶s product or service
Total volume that would be bought by a defined customer group geographical area time period marketing environment marketing programme
Boom period Recession
The market potential of the product with minimum marketing effort of the industry
Market demand corresponding to the industry marketing expenditure This would be lower than the market potential
Company Sales Forecast
Expected level of company sales based on a chosen marketing plan and an assumed marketing environment.
Sales goal for a product line,company division or a sales rep.It is a benchmark to evaluate achievements against goals set.
Conservative estimate of the expected volume of sales and is used for purchasing.production and cash flow decisions
Estimating Future Demand
Survey of buyer¶s intentions Composite of sales force opinions Expert opinion Past sales analysis Market test method
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