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Forecasing Definition and Market Demand

- Describe forecasting and market demand?
- Explain the impact of forecasting market demand?
- Describe the key marketing concepts and principles that are used in forecasting marketing demand?

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- Describe forecasting and market demand?
Forecasting is an essential tool in any decision making process. There are various techniques of forecasting:
Qualitative techniques involve primarily judgment, and quantitative, involving primarily historical data and mathematical models.
Qualitative techniques rely on judgment, intuition, and subjective evaluation. Among the major techniques within this category are market research (surveys), Delphi (panel consensus), historical analogy, and management estimation (guess).
Company Sales Forecast: is the expected level of company sales based on a chosen marketing plan and an assumed marketing environment. One can use the Time series and regression analysis to do sales forecast:

I Time series
Time series is one of the quantitative methods we use to determine patterns in data collected over time. Time series analysis is used to detect pattern of change in statistical information over regular intervals of time. We project these patterns to arrive at estimate for the future. Thus times series helps us cope with uncertainty about the future. There are four kinds of changes in time series analysis:
Secular trend: The value of variable tends to increase or decrease over a long period of time. The steady increase in cost of living recorded by the consumer price index is an example of secular trend.
Cyclical fluctuation: For example business cycle. Over time there are ...

Solution Summary

The solution describes key concepts and principles used in forecasting market demand.