 An activity of determining qty. of goods to be purchased in Future  Necessity for forecasting Demand  Stock Effects  Market Response effects 

Slides:

Advertisements

Similar presentations

CH:6 MARKET SEGMENTATION METHODS OF SALES FORECASTING

Advertisements

SEZER KOÇ  DEU  İndustrial Engineering.

Forecasting Methods & Importance

What is Forecasting? A forecast is an estimate of what is likely to happen in the future. Forecasts are concerned with determining what the future will.

Chapter 5. MARKET MEASUREMENT BA L.P.Chew

Marketing Plans n Strategic Marketing Plans – based on careful examination of a firm’s core business strategy and primary marketing objectives n Tactical.

Forecasting 5 June Introduction What: Forecasting Techniques Where: Determine Trends Why: Make better decisions.

Supply Chain Operations: Planning and Sourcing

1 Marketing Plans Strategic Marketing Plans – based on careful examination of a firm’s core business strategy and primary marketing objectives Tactical.

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. C H A P T E R Market Potential and Sales Forecasting 6.

Macroeconomics. 1. Circular flow – the movement of output and income from one sector of the economy to another.

CAPACITY AND LOCATION PLANNING Chapter 5 Forecasting demand –Forecasting methods. 197 –Formal v. Informal –Qualitative v. Quantitative –Qualitative methods:

1.Explain role of demand management 2.Differentiate between demand management and forecasting 3.Describe various forecasting procedures 4.Develop forecast.

The Strategic Role of Information in Sales Management

INTERNATIONAL PRODUCT PLANNING: STANDARDISATION vs. ADAPTATION.

Session 5: Demand forecasting

Demand Planning: Forecasting and Demand Management

DEMAND FORECASTING A forecast is a prediction or estimation of future situation. It is an objective assessment of future course of action. Since future.

Measuring Market Opportunities Potentials and Forecasts.

Marketing Management Indicator 1.03 Employ marketing-information to develop a marketing plan.

Human Resource Planning

Demand Forecasting By Prof. Jharna Lulla.

Samuel H. Huang, Winter 2012 Basic Concepts and Constant Process Overview of demand forecasting Constant process –Average and moving average method –Exponential.

Measuring and Forecasting Demand

McGraw-Hill/Irwin Copyright 2006 by The McGraw-Hill Companies, Inc.

Planning and Budgeting

20041 CE Management and Planning Diane Bishton – K229 Planning & Forecasting - Nature & purpose.

Sales Management 8 Estimating Demand. Time Sales 0 Market Potential Industry Forecast Company Potential Company Forecast (Industry Forecast ≤ Market Potential)

CHAPTER 5: MARKETING RESEARCH Hudson Rogers Florida Gulf Coast University.

Chapter 2 – Business Forecasting Takesh Luckho. What is Business Forecasting?  Forecasting is about predicting the future as accurately as possible,

PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2006 Thomson Business & Professional Publishing. All rights reserved.

APPLIED MARKETING STRATEGIES Lecture 8 MGT 681. Marketing Ecology Part 2.

Data on demands of the market may be needed for a number of purposes to assist an organization in its long-term, medium and short-term decisions. Forecasting.

Selling in the Marketing Environment. The Nature, Development and Functions of Marketing Marketing is the performance of business activities that directs.

Demand Planning: Forecasting and Demand Management CHAPTER TWELVE McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

1 Financial Planning and Forecasting: Cash Flows and Financial Statement Analysis Corporate Finance Dr. A. DeMaskey.

Financial Projections Forecast—Budget—Analyze. Three Methods of Analyzing Financial Statements Vertical analysis Horizontal analysis Ratio analysis.

10B11PD311 Economics. Process of predicting a future event on the basis of past as well as present knowledge and experience Underlying basis of all business.

Toney L Ferguson M.B.A.,M.PM..  Demand  Forecasting  Inventory Management.

Demand Forecasting General considerations:

Quantitative Techniques. QUANTITATIVE RESEARCH TECHNIQUES Quantitative Research Techniques are used to quantify the size, distribution, and association.

Sales Management 8 Estimating Demand. Time Sales 0 Market Potential Industry Forecast Company Potential Company Forecast (Industry Forecast ≤ Market Potential)

UNIT - 3 DEMAND FORECASTING. MEANING Demand forecasting refers to an estimation of most likely future demand for a product under given conditions.

 The goal of a market analysis is to determine the attractiveness of a market and to understand its evolving opportunities and threats as they related.

MARCH 15, 2012 MKGT 241 DR. DAWNE MARTIN Sales Forecasting.

Planning in production systems 2.Management production Slovak University of Technology Faculty of Material Science and Technology in Trnava.

CHAPTER 12 FORECASTING. THE CONCEPTS A prediction of future events used for planning purpose Supply chain success, resources planning, scheduling, capacity.

Demand Forecasting By: Malik Abrar Altaf.  Independent demand items are the only items demand for which needs to be forecast  These items include :

Sales Forecasts are used for: New product decisions Product scheduling Financial planning Inventory planning and procurement Distribution Human resource.

Chapter 8 Quantity and Inventory ©McGraw-Hill Education. All rights reserved.

A Framework for Marketing Management International Edition 3 Collecting Information and Forecasting Demand 1.

‘Information is the competitive advantage that drives success…just so long as the information is appropriate and adequate and we know how to use that information!

DEMAND FORECASTING METHODS Taken from: Taken from: „Demand Forecasting: Evidence-based Methods” by J. Scott Armstrong and Kesten C. Green.

DEMAND FORCASTING. Introduction: Demand forecasting means expectation about the future course of the market demand for a product. Demand forecasting is.

DEMAND FORECASTING & MARKET SEGMENTATION. Why demand forecasting?  Planning and scheduling production  Acquiring inputs  Making provision for finances.

6-1. McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved. Market Potential and Sales Forecasting Chapter 06.

Managerial Economics- An Introduction.  It is the discipline that deals with application of economic concepts, theories and methodologies to practical.

MARKETING RESEARCH.

Marketing Management 2nd Edition

MANAGERIAL ECONOMICS & FINANCIAL ANALYSIS

Supply Chain Management for Non Supply Chain Management Professionals

Analysis for Marketing Planning

Demand Estimation and Forecasting

ENGM 742: Engineering Management and Labor Relations

Applied Marketing Strategies

RAJEEV GANDHI COLLEGE OF MANAGEMENT STUDIES

6 C H A P T E R Market Potential and Sales Forecasting

INTRODUCTION TO FORECASTING

Measuring and Forecasting Demand

BEC 30325: MANAGERIAL ECONOMICS

Presentation transcript:

 An activity of determining qty. of goods to be purchased in Future  Necessity for forecasting Demand  Stock Effects  Market Response effects  Factors affecting Demand forecast

Factors involved in Demand Forecasting 1. How far ahead? a. Long term – eg., petroleum, paper, shipping. Tactical decisions. Within the limits of resources already available. b. Short-term – eg., clothes. Strategic decisions. Extending or reducing the limits of resources. 2. Undertaken at three levels: a. Macro-level b. Industry level eg., trade associations c. Firm level 3. Should the forecast be general or specific (product- wise)? 4. Problems or methods of forecasting for “new” vis-à-vis “well established” products. 5. Classification of products – producer goods, consumer durables, consumer goods, services. 6. Special factors peculiar to the product and the market – risk and uncertainty. (eg., ladies’ dresses)

 Scheduling of production to avoid problems of over production and under- production.  Proper management of inventories  Evolving suitable price strategy to maintain consistent sales  Formulating a suitable sales strategy in accordance with the changing pattern of demand and extent of competition among the firms.  Forecasting financial requirements for the short period.

 Planning for a new project, expansion and modernization of an existing unit, diversification and technological up gradation.  Assessing long term financial needs. It takes time to raise financial resources.  Arranging suitable manpower. It can help a firm to arrange for specialized labour force and personnel.  Evolving a suitable strategy for changing pattern of consumption.

1. Non-durable consumer goods: 1. Purchasing power – disposable personal income (personal income – direct taxes and other deductions). Published by C.S.O. 2. Price. 3. Demography: 2. Durable consumer goods: 1. Choice between using the goods longer by repairing it, or 2. disposing it off and replacing it with a new one. 3. Require special facilities for their use, eg., roads for automobiles. 4. Household demand vis-à-vis individual demand. 5. Family characteristics. 6. Total demand consists of a. New-owner demand and, b. Replacement demand 7. Price and credit conditions.

3. Capital goods: – used for further production. Demand will depend upon the specific markets they serve and the end uses for which they are bought. Data required for estimating the demand for capital goods: a. The growth prospects of the user industries. b. The norm of consumption of capital goods per unit of installed capacity. c. The velocity of their use.

 Qualitative Methods  Unaided Judgments/ Expert Opinion/ Hunch Method  Collective Opinion  Prediction Markets  Delphi Technique  Judgmental Bootstrapping  Simulated Interactions  Conjoint analysis  Test marketing

 Buyers’ Intentions  Consumer Clinics  Neuro Science  Market Experiments  Virtual shopping and virtual Management

 Time Series  Moving averages  Leading Indicator method  Correlation and regression Equations  Extrapolation