FORECASTING TECHNIQUE

WHAT IS FORECASTING??
Forecasting is the process of making predictions
of the future based on past and present data and
most commonly by analysis of trends
 METHODS OF FORECASTING
1.Qualitative forecasting
Qualitative forecasting techniques are subjective, based on the opinion and judgment of
consumers and experts; they are appropriate when past data are not available

2.Quantitative forecasting
Quantitative forecasting models are used to forecast future data as a function of past data
QUALITATIVE METHODS

 Jury of executive opinion

This is based on the inputs and decisions of high-level experts or management
 Delphi method
Decision makers, staff, and respondents all meet to develop the forecast. Every shareholder in
the process provides input.
 Sales force composite
Each sales person provides an individual estimate which is reviewed for realism by
management, and then combined for a big picture view.
 Consumer market survey
This is surveying the prospective customer base to determine demand for existing products and
can also be used for new products
QUANTITATIVE FORECASTING
REGRESSION ANALYSIS
THANK YOU 