Describe the sales forecasting process?

Prediction: (It is an attempt by the administration established to finding what will be the status of future demand for goods and services produced by the facility units or values, or both, during a certain period of time or at the end of that period). Why do we predict the volume of sales in the future:1 - to assist in the development of plans for future sales2 - to assist in the allocation of available resources3 - support in identifying the functions of the other entity and to ensure continuity of production, such as identification - inventory and software stores - automated processing appropriate - the quality of labor required - costs and expected revenues. Levels of prediction:1 - General economic level: The starting point to reach the demand estimates.2 - the level of the industry: So you can estimate the facility of demand for its products has to be to estimate the expected demand or predict sales of the industry to which it belongs, and it requires the analysis of indicators related to: industry growth and competition-based and pattern of use or consumption.3 - at the enterprise level: The organization or entity to identify where the market share, taking into account the strengths and weaknesses of their own compared to its competitors or other facilities that operate in the same activity. Important facts about the prediction:1 - whatever the scientific method used in forecasting processes, it is certain that we will not get to the correct estimate of100% of the sales or otherwise due to the nature of the process to predict where there should be a percentage of error.2 - whatever techniques and methods used in the forecasting process must be accompanied by her personal experience of the researcher and appreciation, at least when interpreting the results.3 - The longer the forecast period of time, the less the degree of confidence in the expected results. Importance of sales forecasting:1 - regarded as number of sales estimated number necessary to do the planning and oversight for all aspects of the activity facility where it should be relied upon in the preparation of plans of production or import (buy) and storage and needs assessment of the manpower, money and cash and raw materials and equipment .... etc..2 - based planning budgets established in the estimate of sales since the production budget and the money and the purchase, storage and manpower are considered an extension of the budget expected sales.3 - helps sales forecasting to make decisions other marketing campaigns such decisions can determine the profitability of these sectors and take appropriate decisions in the field of product planning, distribution, pricing and promotion.4 - sales forecasting helps in determining the distribution of marketing expenses actual number of indirect private sales estimated by various market sectors when relying on the method of ability to pay.5 - sales forecasting helps in the preparation of an effective integrated marketing program for the facility or at the level of a product or group of products.6 - Adoption of the profit planning of projects and expansion of the sales forecasting process in the future7 - showing the importance of sales forecasting process when you add forms and new types of products that are created by having produced or imported through the motions or through the study of the expected demand for products and services.8 - the adoption of the budget on the number of sales sales sales, where he compares the estimated estimated expenditure for the various sectors of the marketing of products and areas of sale and customers can determine how profitable these sectors and take appropriate decisions in the areas of product planning, distribution and pricing.

 agree with answers, I would like to add in a few lines  that sales forecast is the most important part of  marketing strategy which leads and guide the general strategy of the organization, because  

  all departments and sections such as: production, finance, human resources, development, etc. ..depend heavily on the results of sales forecasting and begin to draw the plans and programs through this process ( sales forecasting ) for example : If the forecast demand for next year is two million piece of a particular product , production management will determine its needs of raw materials, the number of shifts etc. ..  as well as financial management will determine its needs how much money to produce that quantity, and what are the appropriate sources of financing , the same thing for other departments

- Setting your goals

- Analyse previous performance

- What do you expect from the market? (Market demand, trends, competition, ...)

- Understand the variables (What will effect your market, what will change in your environment/ company, 

- What will your company do? Campaigns, Promotions, New Products, Repricing, ,....

- Do you have sales outlets (Agents, distributors, ...)? If yes, what do you expect from them?

- Set up your expected sales (FORECASTING)

- Identify your needs such as extra sales force, sales tools (cars, leaflets, ...)

- Calculate the costs

Agree with all experts. 

It has been explained expansively by M/S Bassam and Nasir

I believe mr. Kamran Anjum has provided a well defined and detailed explanation of what sales forecasting is about.

 

Sales forecast is a projection into the future of expecting demand given a stated set of environmental conditions     

·Setting goals for forecasting

·   Gathering data

·   Data analysis

·  Choose forecast best mode

·  Forecast evaluate forecast

agreed with all

Sales forecasting is a process of estimating that what a company will sell  in future. It is an integral part of business management. Without a solid idea of what future sales are going to be, we cannot manage our inventory or our cash flow or plan for growth. The purpose of sales forecasting is to provide information that we can use to make intelligent business decisions.

 

By Simple Way

Sales Forecasting it is the operation of sales predication which you have to prepare by accurate way for what we are planning vice verse to what happened at the past so we have to follow the below process:-

 

1- Study of Economic Variables Conditions

2- Market Trend

3- Competition Activities.

4- Market share Status

5- Analyzing Business Past performance

6- Creating Sales Forecasting

Good Day!!!

Sales forecasting is a process to predict or estimate expected sales trend over a given period of time (month, quarter or year). This comprises of a few critical reviews of history and planning to achieve the set targets with the help of:

ANALYSIS & SEGMENTATION of the trends of Product, its category and buying behavior of customer.

DESIGN new strategy after reviewing the last sales result vs last forecast & strategy.

ACTION steps for the implementation of strategy & contingency plans for the shortfall of budget, adding new activity & events

MONITORING of the forecast & strategy with an activity tracking plan.