Sales Forecasting Techniques

This activity is important because forecasting and estimating potential sales is often a key responsibility of marketing managers. Additionally, good sales forecasts help production managers optimize production schedules. While sales forecasts are unlikely to be $100$ percent accurate, sales forecasts can help firms achieve their profit objectives.

The goal of this activity is for you to identify the differences between the three main types of sales forecasting techniques: judgments of the decision maker, surveys of knowledgeable groups, and statistical methods.

Roll over each example to read the sales forecasting technique, then classify it as a judgment of the decision maker, survey of knowledgeable groups, or statistical method.

Trend

Lost$-$Horse

Extrapolation

Forecast