Sales forecasting is the prediction of expected sales , by product or price for a number of months or years

1. SALES FORCASTING
CLASSES BY VIJYATA

2. DEFINITION
Sales forecasting is prediction of expected sales , by
product and price , for a number of months or
years.
According to AMA, sales forecasting is an estimate
of sales , in dollars or physical units for all specific
future periods under a proposed marketing plan or
programme and under an assumed set of
economic and other forces outside the unit for
which the forecast is made.

3. Factors of assessment for sales forecasting
Uncontrollable factors Controllable factors
 The outside factors
which can influence
sales like weather,
government activity
and competitive
behavior.
 The internal marketing
methods or practices of
the firm that are likely to
affect its sales, such as
product quality , price
advertising , distribution
and service

4. BENEFITS OF FORECASTING
 Enables the managers to analyse future and discount it to the present
 Identifies areas which need maximum attention of managers to avoid
bad planning or framing ill-objectives
 Helps in coordination of plans
 Increases organisational and managerial efficiency in terms of
organisational planning
 Helps in measuring sales efficiency of sales department
 Reallocation of sales territories
 Helps in averaging out production and employment over the year

5. SALES FORECASTING STEPS
Determine the sales
forecasting objective
Divide company’s
products into
homogeneous groups
Select the appropriate
Sales forecasting
method
Collect and analyse
the sales and derive
conclusions therefrom
Covert the Conclusion
into specific forecast
relating to the product
and territories involved
Apply these forecasts
and periodically review

6. APPROCHES TO SALES FORECASTING
Top – down
Approach
Bottom –up
approach

7. METHODS OF SALES FORCASTING
Projection
of past
sales
Jury of
Executive
Opinion
Methods
Poll of
Sales
force
Opinion
User’s
Expectation
Method
Regressio
n Analysis
Correlation
Analysis
Time
Series
Method
Trend
Analysis
Method
Group
Methods
Graphical
Methods

8. CHOICE OF FORECASTING METHODS
Factors
affecting
the
choice
Flexible
Efficient
Timeliness
Accurate
Availability
of
information
and
personnel

9. THANK YOU
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