DEMAND

FORCASTING
Synopsis
 Introduction-
 Method of Demand Forecasting
 Significance /Importance of D.F.
 Criteria or Features of Demand
Forecasting
Definitions
 Demand Forecasting is the process of
finding values for demand in future time
period
 Kotler remarked “ Forecasting is like trying
to drive a car blind fold and following
directions given by a person whose is
looking out of the back window.”
Levels of D.F.
1. Firm Level
2. Industry Level
3. Macro Level
Methods Of D.F.
Survey Methods Statistical Methods
Time Series

Census Sample Market Sales force Expert

Experimentation opinion opinion

Test Marketing Controlled Experimentation

Methods Of D.F.
Survey Methods Statistical Methods

Trend Projection Regression Moving Avg.

Graphical Least Square Simple Multiple

Significance/Importance of D.F.
 Production Scheduling
 Plan for future needs for various resources
 Appropriate price policy
 Sales promotion programmes
 Financial Requirements
 Planning of New Investments
 Uncertain Future
Criteria or Features of Demand
Forecasting
 Accuracy
 Simplicity
 Economy
 Durability
 Flexibility
 Availability
 Plausibility