Forecasting Sales

Posted in Marketing and Strategy Terms, Total Reads: 1798
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Definition: Forecasting Sales

Forecasting or (better known as) Sales Forecasting is the process of estimating what your business’s sales are going to be in the future. It is based on historical sales data, analysis of market surveys and trends, and salespersons' estimates.

It forms the basis of a business plan that one can use to make intelligent business decisions.

The process of doing a sales forecast involves understanding and researching the target market, segment, external environment, competition analysis and trends.

Some of the reasons for undertaking sales forecasts are to decide upon:

  • Headcount
  • Promotional mix
  • Capacity and utilization

There are two major types of forecasting:

  • Macro forecasting is concerned with forecasting markets in total.
  • Micro forecasting is concerned with detailed unit sales forecasts.

 

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