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Demand forecasting is an estimate of demand during a specified future period based on a proposed marketing plan and particular uncontrollable and competitive forces. Cundiff and Still
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 To

produce required quantity To assess probable Demand Sales forecasting Control of Business Stability To plan Investment and Employment To help the Govt. Man power Planning

 Purchasing
Price

power of customers

Socio-Economic

conditions Credit conditions Conditions within the industry. Demography

 Step

1- Determining the objectives and the purpose for which the forecasts are to be used. Step2- Determining the relative importance of the factors which affect sale of each product. Step 3- Selecting the appropriate forecasting method

Step4- Collecting and analyzing the data. Step5-Making assumptions regarding the effects of factors. Step6- Making specific forecasts relating to the products and territories involved. Step7- Periodically reviewing and revising the forecasts.

Forecasting techniques

Simple survey methods

Complex statistical methods

Experts opinion

Consumers interview

Trend analysis

Barometric techniques

Econometric techniques

Complete enumeration survey method

Sample survey method

End-use method

Regression method

Simultaneous equation model

 Opinion

Poling Method :

 Greater

degree of accuracy More useful for new products

Disadvantages:
Expensive
Time

consuming Biased Need trained investigators.

Advantages: Less Costly Less Time Consuming Reliable

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Limitations
Chances

of errors Misleading results Shortage of trained investigators

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Joel Dean has suggested following approaches for the forecasting the demand of new product.

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 Lack

of past sales data Change in fashion Non availability of experts Psychological factors Cost

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 Simplicity Accuracy Availability Economy Quickness Effective

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