All the business owners are well aware of business research reports. Along with the information about market trends, customer behavior and existing competitors, forecasting is a major part of Industry research. Sales forecasting is an extremely difficult area of business, which needs careful management. Many experts claim that forecasting is an art that you need to master with help of accurate statistics and well-compiled market data.
Importance of Sales Forecasting
Every business owners needs strong business planning in terms of investments, product development, and product launch and product withdrawal. Sales forecasting helps you exactly with all these aspects of marketing research. As a result, sales forecast is one of the most critical parts of any business venture. Sales forecasting plays a major role in decision-making of the management. You can determine crucial aspects like employee levels, promotions and product investments. Forecasting requires thorough knowledge about business research; hence always hire a professional business market research firm like MarketsandMarkets to do the job for you.
There are two basic types of sales forecasting, namely, macro forecasting and micro forecasting. Marketing researchers are the ones who determine which type of forecasting is suitable for a particular industry research project. This selection depends on several crucial internal and external factors concerning that business. These determining factors include, the degree of accuracy, availability of data, time span determined to finish the marketing research reports and market position of that product in its life cycle. Business research experts create market demand, in order to project the sales estimations.
Market demand is the amount of product, which is bought by a customer in the defined time and marketing area. After calculating the market demand, you need to calculate the company demand. Company demand is the share of your business in the total market demand. The demand of your business depends on numerous factors including your products, packaging, service, brands, sales and other such factors. Experts then compare your product to the similar product of your key competitors. Researchers also need to use various types and methods of forecasting.
Sales forecasting for your business research mainly depends on four types of forecasting. These types are, qualitative forecast, quantitative forecast, time-series forecast and explanatory forecast. Based on these four types all the market data is carefully analyzed. Fundamental analysis and technical analysis are the two basic methods of forecasting that help researchers to collect all the information about the prices and prevailing market trends. Detailed analysis of all this data provides enough information to estimate calculated projections about the future trends and opportunities.
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