sales
INTERNATIONAL SCIENTIFIC DAYS 2006
"Competitivness in the EU – Challenge for the V4 countries"
Faculty of Economic and Management SAU in Nitra
Nitra, May 17-18, 2006
THE SALES FORECASTING TECHNIQUES
MARTINOVIC Jelena, (SCG) - DAMNJANOVIC Vesna, (SCG)
ABSTRACT
Many sales managers do not recognize that sales forecasting is their responsibility. In this paper we summarized techniques that manager used into two types: qualitative and quantitative techniques. We also discuss the use of computer software in sales forecasting in Serbia.
KEY WORDS sales forecasting, quantitative and qualitative techniques
INTRODUCTION
Forecasting activity should help managers to make better decisions in the process of planning the business strategy.
The purpose of planning process is to allocate company resources in a manner to achieve anticipated sales.
A company can forecast sales either by forecasting market sales (called market forecasting) and determining what share of this will accrue to the company or by forecasting the company’s sales directly. In this paper we explain techniques for sales forecasting.
There are different periods when we need to predict some results.
1. Short term forecasts – there are usually for periods up to three months ahead and are really of use for tactical matters such as production planning. The general trends of sales is less important here then short term fluctuations
2. Medium term forecasts – these have direct implication for planners. They are of most importance in the area of business budgeting, the starting point for which is sales forecast.
Thus if the sales is incorrect then the entire budget is incorrect.
3. Long term forecasts – these are usually for periods of three years and upwards depending upon the type of industry being considered. For computer industry is a long period but for some other industry such as steel manufacture ten years is a typical long term horizon. Such forecasts are needed mainly by
"Competitivness in the EU – Challenge for the V4 countries"
Faculty of Economic and Management SAU in Nitra
Nitra, May 17-18, 2006
THE SALES FORECASTING TECHNIQUES
MARTINOVIC Jelena, (SCG) - DAMNJANOVIC Vesna, (SCG)
ABSTRACT
Many sales managers do not recognize that sales forecasting is their responsibility. In this paper we summarized techniques that manager used into two types: qualitative and quantitative techniques. We also discuss the use of computer software in sales forecasting in Serbia.
KEY WORDS sales forecasting, quantitative and qualitative techniques
INTRODUCTION
Forecasting activity should help managers to make better decisions in the process of planning the business strategy.
The purpose of planning process is to allocate company resources in a manner to achieve anticipated sales.
A company can forecast sales either by forecasting market sales (called market forecasting) and determining what share of this will accrue to the company or by forecasting the company’s sales directly. In this paper we explain techniques for sales forecasting.
There are different periods when we need to predict some results.
1. Short term forecasts – there are usually for periods up to three months ahead and are really of use for tactical matters such as production planning. The general trends of sales is less important here then short term fluctuations
2. Medium term forecasts – these have direct implication for planners. They are of most importance in the area of business budgeting, the starting point for which is sales forecast.
Thus if the sales is incorrect then the entire budget is incorrect.
3. Long term forecasts – these are usually for periods of three years and upwards depending upon the type of industry being considered. For computer industry is a long period but for some other industry such as steel manufacture ten years is a typical long term horizon. Such forecasts are needed mainly by