Sales forcecasting ppt
- 1. A Presentation on “ Sales Forecasting” Presented By Rubeena.Sk
- 2. Sales Forecasting “Sales forecasting is the process of a company predicting what its future sales will be.” Forecasting “Forecasting is a tool used for predicting future demand based on past demand information.”
- 3. Steps in Sales Forecasting • Defining the objectives to be achieved. • Dividing various products into homogenous groups. • Analyzing the importance of various factors to be studied for sales forecasting. • Selecting the methods. • Collecting and analyzing the related information. • Implementing the decisions taken. • Reviewing and revising the sales forecasting from time to time.
- 5. Qualitative methods Executive opinion In this method the executives are well informed about the industry outlook, capabilities and marketing programs .they express their opinion as to what according to them is the sales expected in future. Delphi method It is a forecasting method based on the results of questionnaires sent to a panel of experts. It seeks to aggregate opinions from experts.
- 6. Qualitative methods Sales force composite In this method a production manager estimates future demand for a product or service by aggregating what each member of the sales force experts to be able to sell in his/her region. Survey of buyer’s intentions customer intention can be used in forecasting demand for new or existing product. Questionnaires are filled by customers on their intentions to buy the product.
- 7. Qualitative methods Test marketing It is a tool used by the companies to check the viability of their new product before it is being launched in the market on a large scale. Test marketing are two types 1.Consumer goods 2.Industrial goods a) Alpha test b) Beta test
- 8. Quantitative methods Moving averages It is a time series analysis. It is based on past prices the two basic and commonly used MA’s are 1.Simple moving average(SMA) 2.Exponential moving average(EMA) Exponential smoothing This method is used when the forecast of large number of products is made , it also takes into account the changes in the responses of the buyers.
- 9. Quantitative methods Decomposition This method translates a constraint satisfaction problem into another constraint satisfaction problem. It work by grouping variables into sets and solving a sub problem for each set. Ratio method It is the most cost-effective forecasting model and provides a bench mark against which more sophisticated models can be compared. By using this method , forecasts are produced that are equal to the last observed value.
- 10. Quantitative methods Regression analysis This technique is used to analyze the interrelationship among the variables from the historical data and then used to forecast dependent variable values which can effects the sales. Econometric model It is also one of the analytical tool used in sales forecasting. It is used in economic theories and transforms into mathematical which shows different variables that effect the sales.
- 11. Conclusion It is an important tool for any growing business . It can help to increase the revenue, profitability and customer base. In order to retain more and more customers. It provides source of information that allows you to manage in every aspects of your business.
- 12. References 1. www.techniques ofsalesforecasting.com 2. www.salesforecasting.weebly.com/why-sales- forecasting-is-necessary.html 3. www.yourarticlelibrary.com/sales/sales- forecasting...importance.../50997 4. www.methodsofsalesforecasting.weebly.com/why-sales- forecasting-is necessary.html
- 13. Thank You I welcome your Suggestions !!!