QUALITATIVE FORECASTING-

 Qualitative forecasting is a method of forecasting which is based on the

subjective opinion and the judgment of consumers and experts;
 Qualitative forecasting methods rely on expert judgment, subjective opinions, and
qualitative data to make predictions about the future.

 This method relies on expert judgment, market research, and subjective

information to make predictions. It is used when historical data is limited or
unreliable.

 Qualitative techniques are more subjective and less reliant on numerical data.

Methods-

 DELPHI METHOD-: In this method, a panel of experts is asked to independently

provide their opinions on the future situation. These opinions are then collected,
summarized, and redistributed to the experts for further rounds of feedback. This
process continues until a consensus is reached
This technique gathers and synthesizes opinions from a group of experts
anonymously. It involves multiple rounds of surveys or questionnaires, allowing
experts to revise their forecasts based on the group's collective input.

Market Research: Qualitative market research techniques involve surveys, interviews,
focus groups, and observations to gather information about consumer preferences
and behaviors. These insights are used to make predictions about future market
trends.
involves gathering information directly from consumers, potential customers, or
stakeholders to understand their preferences, behaviors, and opinions
By analyzing and interpreting the data gathered from these market research
techniques, businesses can make informed decisions about product development,
marketing strategies, and future market conditions.

 Expert Opinion: Experts in a particular field provide their subjective judgments

based on their knowledge and experience. This method is often used when no other
data is available.
Involves gathering insights and predictions from knowledgeable individuals or a
panel of experts in the field. This technique relies on their experience, intuition, and
understanding of market trends to make forecasts.

Combining expert insights with quantitative data analysis can lead to more
robust and reliable forecasts, especially in situations where historical data
might be insufficient or unreliable.
  Historical Analogy: This approach involves comparing the current situation to similar
situations in the past and using the outcomes of those past situations to make
predictions. . By extrapolating insights from these historical parallels, forecasters
make educated predictions about potential future trends or developments.

QUANTITATIVE FORECASTING-
 Quantitative forecasting methods, on the other hand, rely on historical data and
mathematical models to make predictions. These methods are more objective and
data-driven

METHODS-
 Time Series Analysis: Time series data is a sequence of observations taken at regular
intervals. Quantitative forecasting methods like moving averages, exponential
smoothing, and autoregressive integrated moving average (ARIMA) analyze historical
time series data to identify patterns and trends for making future predictions.
This method focuses on analyzing the sequential order of data points, looking for
trends, seasonality, cyclical patterns, and irregular fluctuations.
It revolves around the idea that future outcomes can be forecasted based on patterns
and behaviors observed within the historical data.

 Regression Analysis: Regression analysis assesses the relationship between one or

more independent variables and a dependent variable. This technique is often used
to predict future values based on historical data and the identified relationships.
The process involves fitting a regression model to historical data, identifying patterns,
and establishing the strength and direction of relationships between variables. By
analyzing these relationships, the technique enables forecasters to make predictions
about future outcomes or values of the dependent variable based on changes in the
independent variables.

 Barometric Method or Economic Indicator Method

This method is based on the past demands of the product and tries to
project the past into the future. The economic indicators are used to
predict the future trends of the business. Based on future trends, the
demand for the product is forecasted. An index of economic
indicators is formed
Instead of relying solely on sales data, this method incorporates broader economic factors
that tend to influence consumer behavior and purchasing patterns.

Key economic indicators such as consumer confidence, disposable income levels, interest
rates, employment trends, and overall economic growth are monitored. Changes or trends in
these indicators can provide insights into potential shifts in consumer behavior and overall
market demand.

 Machine Learning and Artificial Intelligence

 Machine learning and AI methods for sales forecasting leverage advanced algorithms
to analyze large volumes of data and identify complex patterns and relationships that
might not be immediately evident through traditional methods. These techniques use
historical sales data along with a wide array of variables such as market trends,
customer behavior, economic indicators, seasonality, and even external factors like
social media activity or weather patterns

 : Advanced statistical and machine learning models, such as neural networks and
support vector machines, are used to analyze large datasets and make predictions.
These models can handle complex relationships and non-linear patterns.