SALES FORECAST

Sales forecast

Sales forecast and Hurricane: case study

A sales forecast is the estimate or forecast sales of a product (good or service) during a given period ahead. The demand market for a product is the total volume likely to be bought by a certain group of consumers in a particular geographical area, for a given period, defined in a marketing environment and under a specific program of marketing. Sales forecasts are indicators of economic and business realities (basically the situation of the market and the company's participation in that market.) The outcome determines what can be sold based on reality, and sales plan that actually hypothetical allowed to materialize, leading the rest of the company's operating plans. The main objective of forecasts is then transformed to become the input for the rest of the operational plans.

The sales trend analysis shows a significant change in month of December each year. In month of December, sales volume boost up to 10-12% and even more then that each year. Thus, the cost of sales is much more for the month of December, where company can gain a comparative edge. Further, trend of sales is good for Carlson stores for last 48 months. They can achieve an increase sales volume o if there were no hurricane. But, unfortunately, they tend to got damage due to hurricane. However, there in durance claim is justified by the figures as the lost in two ways.

Potential way: there tread of increased sales on an average

Opportunity cost: the increase in sales due to hurricane cannot be entertained by them effectively.

The sales forecast is the projection on the future of expected demand by giving a set of environmental restrictions. Many companies confuse the role of planning forecasts. The definition of sales plan does not include activities to projected levels of demand and that is one of the most important distinctions in this regard. Thus, the forecasting system is configured as a "learning system." It aims to determine the errors in predictions based on environmental changes that caused them to thereby improve accuracy in the future.

Factor market: a market view that

1) Exists in the market,

2) Is finite and measurable, and

3) Is related to the demand for a good or service. For example the number of restaurants is a market factor as it relates to the demand for raw food, dishes, etc.

Sales potential of a market: the total sales of a product of all the companies that market it under optimal conditions, over a given period. This means two things:

1) Marketing plans are designed and executed to perfection and

2) All members of the market wanting to buy the product and the money to do it, they did.

Market share: The portion of the market that cover the total sales of a particular product. You can refer to a company or more, as well as to a product or more.

Sales Forecasting and Demand for the company: the sales estimates a company makes for ...