Once you have correctly defined your market niche, and begin to understand the dynamics of market movements, it is time to focus all your efforts on developing and compiling a sales forecast. There are currently a sufficient number of methods and software available in this area. All that remains is to choose exactly what is best for your company.
There are the following methods of sales forecasting - quantitative and qualitative. In the first case, the methodology is based on numerical indicators of information, and in the second - on data received from consumers. Sales forecasting specialists prefer to use a combination of these methods.
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Subjective methods of sales forecasting
They are based not on figures obtained empirically or taken from statistics of past sales, but on the personal point of view of the situation of specific specialists.
User Expectations
The method of user expectations has a second name – the method of potential customers’ intentions. It is based on the voiced desire of consumers to purchase a particular type of product.
When making a forecast of the volume of sales of products, the use of this method gives indicators according to which it is possible to more realistically estimate the sales potential or market capacity, rather than to forecast the level of sales. Analysis of user expectations is more attractive for use in assessing the feasibility of entering a specific market or its segment. But it is better not to use it for forecasting sales. This is explained by the fact that there is a very large difference between the desire to buy and the actual purchase, which can be overcome with the help of a marketing sales strategy. And when entering the market with an offer of new goods or services, this must not be forgotten.
This method has a number of significant shortcomings. An organization can often invest significant amounts in marketing, but despite this, sales of a new product will be low. According to calculations, the situation is different, the product should sell well. This leads to the conclusion that sales forecasting based on the analysis of buyers' intentions can give incorrect results.
User Expectations