Scribd
Upload
5 views2 pages

B2B Marketing Assignment

Demand forecasting is a predictive analysis method that helps businesses estimate future product or service demand based on historical data, aiding in inventory and supply decisions. It can be categorized into macro-level and micro-level forecasting, with various methods including qualitative approaches like the Delphi Technique and quantitative methods like trend projection. Selecting the appropriate forecasting method is crucial for accurate demand predictions.

Uploaded by

John Cena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
5 views2 pages

B2B Marketing Assignment

Demand forecasting is a predictive analysis method that helps businesses estimate future product or service demand based on historical data, aiding in inventory and supply decisions. It can be categorized into macro-level and micro-level forecasting, with various methods including qualitative approaches like the Delphi Technique and quantitative methods like trend projection. Selecting the appropriate forecasting method is crucial for accurate demand predictions.

Uploaded by

John Cena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

B2B Marketing

Demand Forecasting:
It is a method for evaluating and forecasting future demand for a product or service using predictive analysis
of historical data. Demand forecasting assists a company in making better-informed supply decisions by
estimating total sales and revenue over time.
Businesses can use forecasting demand to improve inventory by anticipating future sales based on
historical sales strategy plan’s data, helping them make better decisions about everything from inventory
planning and storage requirements to executing flash deals and meeting consumer expectations.

Types of Demand Forecasting


1. Macro-level
The macro-level considers the overall state of the economy, external influences, and other broad factors that
disturb business.
2. Micro-level
Entrepreneurs can tailor micro-level forecasting to a single sector, business, or client segment.

Methods for Demand Forecasting


The proper forecasting method selection is one of the most critical aspects. As mentioned below, you can
anticipate demand using
Qualitative approaches
The Delphi Technique
It entails appointing a panel of experts to create a Demand Forecast. Each expert must make a forecast for
the section to which you have allocated them. Each expert reads their projections following the initial
forecasting round, and other experts affect each during the process. All experts then make a new prognosis,
and you repeat the process until all experts have reached a near-consensus scenario.
Opinion of the Salesforce
You can ask each Salesperson in the team to provide insight on predicted demand by the Sales Manager.
Each Salesperson assesses their respective region and product categories, then responds to each customer's
specific needs. After management's approval, the Sales Manager collects all of the demands and generates
the final version of the Demand Forecast.
Market Research
Customer-specific surveys are used in market research to generate potential demand. These surveys usually
take the form of questionnaires that ask end-users for personal, demographic, preference, and financial
information. Because this form of research relies on random sampling, you should be cautious while
selecting survey regions, locations, and demographics for the end customer. This strategy could be
advantageous for products with little or no demand history.
Quantitative Approaches
Trend Projection Method
You can efficiently use the trend projection method for companies with a long sales data history, usually
more than 18 to 24 months. This historical data forms a "time series" that shows past sales and projected
demand for a specific product category under normal conditions.
Technique of Barometry
You can develop the barometric forecasting technique for documenting current events to forecast the future.
You do it in the forecasting process by examining statistical and economic indicators. To develop the
Demand Forecast, forecasters typically use statistical analysis such as Leading series, Concurrent series, or
Lagging series.
Econometric Forecasting
It is a technique that uses sophisticated mathematical equations and autoregressive integrated moving
averages to create correlations between demand and factors that impact the market. You derive an equation
and fine-tune it to achieve an accurate historical portrayal. Finally, you generate the forecast by plugging the
expected values of the affecting factors into the equation.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy