METHODS OF SALE PLAN FORECASTING

1.OPINION METHOD:

The functional manager gives the opinion of the estimated forecast based on previous data and experience. Boss gives the final decision or opinion for that forecast.

This method has the advantage of being easy, simple and it does not require any study and statistics.

This method has disadvantage of guesswork and no facts.

2.SALE-FORCE COMPOSITE METHOD:

Sales manager and salesmen give the view on sale forecast based on the data of present sale. Sales manager asks the regional manager to give present data.

Regional manager then asks the district manager which then asks the salesmen.

Advantages: Salesman being closer to the market gives first hand knowledge.

It allows every breakdown, by product, by customer or territory, valuable and useful to the organization to make a better decision.

Disadvantage: It does not forecast about future but gives information about present market conditions.

3.USERS EXPECTATIONS METHOD: In this method expectations of users are kept in mind before making decision in addition to keeping in view the number of expected users in certain area.

Empty ampoules were first manufactured at Karachi. With the passage of time, factories making injections were established in Lahore. So it was users’ need that ampoules should be manufactured in Lahore.

Soft drinks when first marketed, caps for them were imported. Later local investors pick the need and started manufacturing caps locally for the soft drink industry.

4.STATISTICAL METHOD:

It is also called as trend and cycles, co-ordination analysis.

Mathematical models are the techniques employed.

Statistical analysis based on the units/Dollar value in comparison to per one thousand populations is employed.

Co-ordination analysis is considered as co-ordination of company sales with GNP (Gross National Product) or National Income or consumer

Statistical methods have drawbacks of being difficult, technical and based on past trend and not based on future trend.