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TERMS USED IN SALES FORECASTING


TERMS USED IN SALES FORECASTING

    It will be appropriate here to discuss the terms which are commonly used during sales forecasting. These terms are as under:

(1) Market Potential: Market potential is a quantitative estimate of combine prospective sales by all the marketing companies selling the same product in a specified market.

(2) Company Potential: Company potential is a part of market potential, which refers maximum capacity of an individual firm in terms of sales which can be achieved by it, in a given time period in the total market.

(3) Market Demand and Company Demand: Market demand and company demand refer to the part of ‘market potential’ and ‘company potential’ which can be achieved under current market situations.

(4) Market Forecast: Market forecast refers to that portion of market demand which can be achieved combine by all the firms, selling the same product in a specified market. Thus, it is a prospective total sales of a specific industry, which can be achieved by all the marketing companies.

(5) Company Forecast: At the micro level company forecast is a part of ‘market forecast’, which can be achieved by an individual firm in terms of sales, in the given conditions and in a specified the frame. Therefore, it is a part of market-share, which the marketing company wants to capture in a given period.


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