DEMAND FORECASTING & MARKET POTENTIAL ANALYSIS.

What People Say?

Survey of Buyers Intentions Composite Of Sales Force Opinions Expert Opinion

What People Do?

Market Test Method

What people Have Done ?

Time Series Analysis Statistical Method

Market Demand
It is Aggregate of the demands of all Potential Customers for a Specific Product over a Specific Period in a Specific market under a Specific Marketing Program .

Measuring Market Demand

Potential Market Available Market Served / Target Market Penetrated Market

Demand Measurement
Market Demand Market Potential Market Forecast Company Demand Company Sales Potential Company Sales Forecast

What People Have Done

Time Series Analysis: It Consists of Breaking Down Past Time Series Into Four Components (Trends,Cycle,Seasonal & Erratic) & Projecting these components into Future

STATISTICAL METHOD
Trend Projection Method /Expert Opinion

METHODS USED IN SALES FORECASTING

1) 2) 3) 4) 5) Jury Method/Executive Opinion Survey of Experts Opinions The Delphi Method Sales Force Composite Method User Expectation Method/End Use Method /Survey Of Buyers 6)Market Share Method 7)Substitution /Replacement Method

8) Market Test /Test Marketing 9)Survey Method 10)Analytical & Statistical Methods

ANALYTICAL & STATISTICAL METHODS

Simple Projection Extrapolation Moving Averages Exponential Smoothing Time Series Analysis Regression Analysis Complex econometric models