|
|
This is only a preview of the paper
Click here to register and get the full text.
Existing members click here to login
|
|
|
The sales forecast for a company is the building block for any estimates for the future. The accounting and finance departments use this to help make plans for cash flow, setting up terms for sales on credit as well as many other functions. ... The sales forecast for a company is the foundation for any future plans and is a vital piece of information that the whole company needs. This forecast also provides a basis to measure success and failure for a sales and marketing department in any company.
The sales forecast usually is divided into three classifications. ...
There are two broad categories that all sales forecasting falls into: Qualitative Forecasting and Quantitative Forecasting. Qualitative forecasting techniques are more subjective and focus on the opinions of those involved and experts in this area to make predictions on the future. Quantitative forecasting techniques are based on historical data and industry trends.
Taking into consideration the qualitative forecasting techniques, there are four main methods utilized. The first method used by companies to make sales forecasts is the Jury of Executive Opinion. ... This is most useful when these top executives are knowledgeable about the company situation, the economic conditions and essentially are aware of what has been occurring with the sales and marketing department. This method has limited usefulness though because quiet often the top executives at a company may not be aware of all of the factors that will effect sales in the future.
The second method used by companies that fall under the qualitative forecasting technique is the Delphi Method. ...
Another common method used in sales forecasting is the Sales Force Composite. This method is typically a bottom up approach to forecasting. ... This is most effectively used to determine the short run and intermediate sales of a company. ...
Qualitative Sales Forecasting has three main methods in making their predictions in the future. ...
Another common Quantitative method used to make sales predictions is Trend Analysis. ... This method generally will take the sales for the last period and consider them through statistical analysis and historical sales patterns. For example if a company had X amount of sales last year and over the past few years averaged a Y amount of growth they would take: X *(XY) = Sales Forecast. ...
The most elaborate and difficult method to use in order to make sales forecasts is Exponential Smoothing. This method utilizes sales data from previous years or periods and assigns weighted averages to them to give more weight to the most recent data available.
Approximate Word count = 2070
Approximate Pages = 8.3
(250 words per page double spaced)
|
|
|
|
|
|