Sales presentation

BY ANKITA KAKATY

SALESFORCASTING IS PREDICTING THE FUTURE SALES IN AN ORGANISATION

QUALITATIVE METHODS:Survey Method- It is based on the opinion of buyers and consumers. It is useful with respect to industrial products but not as far as consumer goods are concerned. According to this method, a company first of all selects potential buyers/consumers. It then collects their opinions for forecasting

Expert OpinionExpert Opinion- According to this - According to this method, a company invites the method, a company invites the opinions of executives and consultants opinions of executives and consultants who are acknowledged experts in who are acknowledged experts in studying sales trend. On the basis of studying sales trend. On the basis of their opinions, it forecasts future their opinions, it forecasts future sales. This estimate is also made on sales. This estimate is also made on the basis of past performance. But it the basis of past performance. But it doesn’t take into consideration of the doesn’t take into consideration of the future trendsfuture trends

Market Studies Method- Market Studies Method- This method is This method is commonly used by marketers for commonly used by marketers for consumer goods. It is also known as consumer goods. It is also known as The Market Test Method. A market test The Market Test Method. A market test provides data about consumers and provides data about consumers and the marketing mix. Some people use the marketing mix. Some people use this method as a market experiment this method as a market experiment method. According to this method method. According to this method market experiments are conducted on market experiments are conducted on changing consumer behaviour, price, changing consumer behaviour, price, advertising expenditure etc.advertising expenditure etc.

Sales Force Opinion Method- Sales Force Opinion Method- This This method estimates the buyer’s method estimates the buyer’s intention from experienced personnel intention from experienced personnel in the sales force. They can easily in the sales force. They can easily forecast for their respective forecast for their respective territories. Territory wised forecast are territories. Territory wised forecast are consolidated at the branch level and consolidated at the branch level and the branch level forecast are the branch level forecast are consolidated at the corporate level. consolidated at the corporate level. This method can be used only when This method can be used only when the firm has competent high calibered the firm has competent high calibered sales personnel.sales personnel.

QUANTITATIVE METHODSQUANTITATIVE METHODS Trend MethodTrend Method- This method provides a - This method provides a

rough trend of the forecast on the rough trend of the forecast on the basis of past experience. It does not, basis of past experience. It does not, however, take into account the however, take into account the changing environment. It is a simple changing environment. It is a simple method for business forecasting on the method for business forecasting on the basis of past performancebasis of past performance

Graphical Method- Graphical Method- In this method the In this method the data's are plotted on a graph paper data's are plotted on a graph paper and a graph is drawn for a number of and a graph is drawn for a number of years. This is a simple and inexpensive years. This is a simple and inexpensive method.method.

Time Series Method-Time Series Method-The time series The time series analysis method predicts the future analysis method predicts the future sales by analyzing the historical sales by analyzing the historical relationship between sales and time. relationship between sales and time. Although the actual number of years Although the actual number of years included in a time series analysis will included in a time series analysis will vary from company to company, as a vary from company to company, as a general rule, managers should include general rule, managers should include as many years as possible to ensure as many years as possible to ensure that important sales trends do not get that important sales trends do not get undetected. They are divided intoundetected. They are divided into

1.1.Free hold or graphical methodFree hold or graphical method2.2.Semi-Average MethodSemi-Average Method3.3.Moving Average MethodMoving Average Method4.4.Least Square Method(sales/years)Least Square Method(sales/years)Yc=a + bxYc=a + bx

Through sales forecasting the Through sales forecasting the companies can make their sales companies can make their sales people better forecasters, by people better forecasters, by training them to better interpret training them to better interpret  their interactions with the  their interactions with the customers.customers.