Forecasting: Basic elements of forecasting, Sales forecasting techniques

Forecasting

Forecasting means estimation of type, quantity and quality of future works e.g. sales etc. It is a calculated economic analysis.

Basic elements of forecasting

1. Trends

2. Cycles

3. Seasonal Variations

4. Irregular Variations

Sales forecasting techniques

a. Historic estimation

b. Sales force estimation

c. Trend line (or Time-series analysis) technique

d. Market survey

e. Delphi Method

f. Judge mental techniques

g. Prior knowledge

h. Forecasting by past average

i. Forecasting from last period’s sales

j. Forecasting by Moving average

k. Forecasting by weighted moving average

l. Forecasting by Exponential smoothing

m. Correlation Analysis

n. Linear Regression Analysis

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