Introducing Sales Forecasting

Name: Introducing Sales Forecasting
Author: Kersten Kelly Brunner

Discover how sales forecasting enables a business to allocate resources and predict performance.

Preview the first lesson free — get full access to all 4 lessons.

Course: On-Demand

(upbeat music) Let's discuss the fundamentals of sales forecasting by starting with some basic definitions. You'll learn what forecasting is, the importance of understanding the market that you're forecasting in, and the impact that this process has on sales. You'll also learn how sales forecasting can help your organization stay ahead of your competitors. In many places, the demand for candy is highest during October through December. Candy businesses typically plan their estimated sales for the year, knowing that there will be a seasonal increase around certain holidays like Halloween and Christmas. How can they estimate exactly how much candy to produce without having a surplus or deficit of inventory? Most manufacturers utilize forecasting to make an educated guess about how much they'll sell, basing their approximation on historical sales data. Forecasting is the process of using historical data to predict estimates of future sales and revenue. It's used to plan a budget, prioritize needs and allocate funds for expenses. Forecasting is based on the projected demand or willingness of consumers to purchase the goods or services being offered during a specific time. An accurate sales forecast enables a company to make better decisions by incorporating market knowledge, competitive insights and numerical facts into a corporate strategy. This process focuses on analyzing trends, requiring multiple points of data within a time period, as opposed to a singular insight of how goods or services are selling. This prevents significant spikes or declines in sales from drastically changing how a company plans their resources. Trends look at averages, constance and movement that provides a general indication of how a product is behaving according to consumers. To develop a good forecast, it's imperative that you understand the market you're in. In sales, the concept of a market includes potential clients, existing customers and competitors. Markets determine the price of goods and services sold within them based on the supply and demand of sellers and buyers. Forecasting helps map out projected sales based on the variables that influence how and when customers are willing to make a purchase. By using past knowledge about customers and the market, your organization can make estimates about your chances of success.

Intermediate Provider : Kersten Kelly Brunner 4 Lessons · 15m in Arabic, German, English, Spanish, French, Portuguese, Urdu, Chinese

Course Description

To develop a good forecast, it’s imperative that you understand what market your organization is in. In sales, the concept of a market includes potential clients, existing customers, and competitors. Markets determine the price of goods and services sold within them based on the supply and demand of sellers and buyers. In these lessons, you’ll learn how sales projections are based on forecasting and data. You’ll also gain a better understanding of the value that forecasting adds to your business and how useful the information is. These lessons will discuss the fundamentals of sales forecasting by introducing some basic definitions. You’ll explore what forecasting is, the importance of the market you’re forecasting in, and the impact this process has on sales. You’ll also learn each step of the forecasting process to help you make an accurate, data-driven estimate on future sales. This will ultimately help you get ahead of the competition.

What You'll Learn

Understand the sales forecasting process and each of its steps
Analyze trends to make accurate, data-driven estimates of future sales
Discover how forecasting adds value and helps a business
Source and scrub your data for reliable forecasts
Determine how sales forecasting can help predict future performance
Explore markets, including potential clients, existing customers, and competitors

Key Takeaways

Developing a good forecast requires understanding the market your organization operates in, which in sales includes potential clients, existing customers, and competitors.
Markets determine the price of goods and services based on the supply and demand of sellers and buyers.
Sales projections are based on forecasting and data, and the course covers the fundamentals through basic definitions.
Following each step of the forecasting process helps you make an accurate, data-driven estimate of future sales.
Accurate sales forecasting can help a business get ahead of the competition.

Frequently Asked Questions

What does this course cover?

It covers the fundamentals of sales forecasting, including basic definitions, what forecasting is, the importance of the market you're forecasting in, the impact of forecasting on sales, and each step of the forecasting process. Lessons include Forecasting, Markets, and Sales; How Sales Forecasting Helps a Business; and The Sales Forecasting Process.

What will I learn to do by the end of the course?

You'll learn to understand the sales forecasting process, analyze trends, discover how forecasting helps a business, source and scrub your data, and determine how sales forecasting can help you predict future performance.

How does forecasting relate to markets?

The course explains that developing a good forecast requires understanding your market, which in sales includes potential clients, existing customers, and competitors, and that markets determine the price of goods and services based on the supply and demand of sellers and buyers.

Is there a way to check what I've learned?

Yes. The course includes a Test Your Knowledge lesson.