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    Demand Forecasting: Prof. R.K. Vijayasarathy Director - IFIM B-School

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    Jitender Kumar
    This document discusses demand forecasting and sales forecasting. It provides an overview of why forecasting is important, outlining that it promotes proper business functioning, influences operations, and is used for budgeting and market controls. It also describes some common forecasting methods like using a customer-product matrix, analyzing trends over time, and applying seasonal variation indexes to past sales. The goal of forecasting is to aid in integrated planning and setting achievable targets and goals.

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    Demand Forecasting: Prof. R.K. Vijayasarathy Director - IFIM B-School

    Uploaded by

    Jitender Kumar
    65 views10 pages
    This document discusses demand forecasting and sales forecasting. It provides an overview of why forecasting is important, outlining that it promotes proper business functioning, influences operations, and is used for budgeting and market controls. It also describes some common forecasting methods like using a customer-product matrix, analyzing trends over time, and applying seasonal variation indexes to past sales. The goal of forecasting is to aid in integrated planning and setting achievable targets and goals.

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    Demand Forecasting

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    This document discusses demand forecasting and sales forecasting. It provides an overview of why forecasting is important, outlining that it promotes proper business functioning, influences operations, and is used for budgeting and market controls. It also describes some common forecasting methods like using a customer-product matrix, analyzing trends over time, and applying seasonal variation indexes to past sales. The goal of forecasting is to aid in integrated planning and setting achievable targets and goals.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    65 views10 pages

    Demand Forecasting: Prof. R.K. Vijayasarathy Director - IFIM B-School

    Uploaded by

    Jitender Kumar
    This document discusses demand forecasting and sales forecasting. It provides an overview of why forecasting is important, outlining that it promotes proper business functioning, influences operations, and is used for budgeting and market controls. It also describes some common forecasting methods like using a customer-product matrix, analyzing trends over time, and applying seasonal variation indexes to past sales. The goal of forecasting is to aid in integrated planning and setting achievable targets and goals.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 10

    Demand Forecasting

    Prof. R.K. Vijayasarathy


    Director - IFIM B-School

    Management Development Program: IFIM B-School, Bangalore


    December 12th & 13th 2003
    I DO THINK YOU
    CAN DO
    TODAY’S JOB WITH
    YESTERDAY’S METHODS
    AND BE IN
    BUSINESS TOMORROW
    - NELSON JACKSON
    SALES (DEMAND) FORECASTING

    1.Promotes and facilitates the proper functioning of the many


    segments of a firm’s total spectrum of business and marketing
    activities.

    2.Influences almost every other prediction of operations.

    3.Used in establishing budgets and market controls.

    4.A useful tool for coordinating the integral aspects of business


    operations.

    - Acts as a component of the marketing planning process


    The Customer-Product Matrix

    Convergence New business


    New selling development

    Customers

    Account Leverage
    management selling
    Current

    Current New
    Products
    The Customer-Product Matrix
    Market potential
    Industry
    forecast

    Basic
    demand
    gap

    Industry Sales

    Company potential

    Company
    forecast

    Company Act ual


    demand Forecast
    gap

    1 2 3 4 5 6 7 8 9 10 11 12
    Custom time period

    Relations Among Market Potential, Industry Sales, and Company Sales


    FORECASTING THE INTEGRATED PLANNING
    Sales
    Forecast

    Marketing goals Related company


    and programs goals and programs

    TARGETS GOALS
    Marketing •Budgets
    •ROI
    Mix •Personnel
    •Profit •Sales •Financing
    •Volume •Product •Purchasing
    •Budgets •Territory •Manufacturing
    •Salesmen •Capital expansion
    •Customer •Inventory
    •Distribution

    Planned business
    achievement
    Marketing planning

    Analysis Judgement Prediction

    Marketing related
    information

    Past information Future information

    Feedback
    Sales forecasting
    Company

    Short
    Published data
    Intermediate
    Survey data

    Experiments Long
    SALES FORECASTING PROCESS
    Last Year’s Total
    sales Volume
    Long-Term Trend in Recent Months’ Trend
    Total Sales Volume in Total Sales Volume
    Initial Expected Increase
    in Total Sales Volume
    General Economic Trends Local Economic Trends
    and Forecasts Anticipated Change in and Forecasts
    Market Demand
    Target Market Trends Other Factors Affecting
    and Forecasts Target Market Segment
    Anticipated Change
    in Sales Potential
    Anticipated Change in Anticipated Change in
    Competitors Strategies Anticipated Change Own Strategy
    in Market Share

    SALES FORECAST
    SEASONAL VARIATIONS METHOD
    MONTH PREVIOUS SEASONALITY NEW
    YEAR SALES INDEX ESTIMATE

    JAN 100 0.4 120


    FEB 200 0.8 240
    MAR 300 1.2 360
    APR 400 1.6 480
    MAY 500 2.0 600
    JUN 400 1.6 480
    JUL 300 1.2 360
    AUG 250 1.0 300
    SEP 200 0.8 240
    OCT 200 0.8 240
    NOV 100 0.4 120
    DEC 100 0.4 120

    AVG 250
    THE NEW YEAR ESTIMATED AVERAGE IS
    OBTAINEDBY EXTRAPOLATING PREVIOUS
    YEARLY AVERAGES

    2000 100
    2001 150
    2002 200
    2003 250

    NEW AVERAGE 2004 300

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