Essay about Issues in Sales Forecasting
James D. Jackson
There are countless issues, problems, and considerations in forecasting for new product. First, we must understand what a sales forecast is and what is designed to do. A sales forecast is an educated guess of future performance based on sales and expected market conditions. The value of the forecast is that we can predict and prepare for the future objectively. The objective is to review the past, be focused in the present and follow the trends of the past and present to predict the future.
Typically due to things that are out of our control, it is very difficult to forecast precisely. Mathematically, however, it is …show more content…
If the market manager is way off in his forecasting, on a continual basis, it will usually cost him his job. Another reason that forecasting is a difficult task is that he would also have to incorporate the weather and any major events that are scheduled. In the end, he must forecast well or lose his job.
Forecasting consist of a large number of variables. It is a way of intelligently guessing what will happen in the present, based on what happened in the past. Forecasting allows managers to prepare for the future as well. There are several things we believe about forecasting: 1. We can not be 100% certain of what the future holds. No matter what we think we know and no matter what method of forecasting we use. 2. Things that we can’t see coming, such as a snow storm or tornado, will always be a possibility. 3. Forecast can be used by any organization, corporate or governmental to help set policy or budgets for the present or the future. There are several forecasting methods out there, so I will address the ones that are most commonly used