Sales Forecasting

The art of predicting future demand by anticipating future trends.

• Production 
• Targets
• HR
• Financial
• Purchases
• Promotion
• Resources
• Budgets
• Cashflow

• Decisions
• Seasonal variation
• No suprises
• Planning

• Inaccurate data
• Past isn't always a guide
• Peer pressure
• External

• Economic
• Consumer
• Competition

Extends past evidence into the future.

Predict sales and change prediction depending on the country.

Asks the people closest to the product.

Tests consumer responses pre-release.

Changes in the economy and markets that indicate future chnages in a firms' market.

Uses past sales to predict future sales.

Not useful for long term predictions.

Includes seasonal/trend/cycle/random

Cheap but requires experience.

Gives specialised insight but can be bias.

Encourages creative thinking but requires a variety of people and is often subjective.

1. Panel answers questionnaire.

2. Second questionnaire is created based on the results of the first.

3. Panel answers second questionaire.

• Expert consensus
• Flexible use
• Not rushed
• Structured group
• Creates a record

• Time consuming
• Assumes experts are willing to come to a consensus
• Bribes would cause bias