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 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.

Judgment of the Decision Maker

Survey of Knowledgeable Groups Knowledgeable Groups