forecast

(noun)

An estimation of a future condition.

Related Terms

Examples of forecast in the following topics:

  • Streamlining Distribution

    • Demand forecast and planning with empirical knowledge (forecasts based on the demand within the previous period) use statistical data and mathematical functions.
    • It may be said that demand forecast is a one-sided process, since forecasts are used as the basis for planning only the possible customers' demand, rather than the quantity of goods that can be produced over the future period.
    • Sales planning can be defined as a process in which demand forecast is converted into a feasible operative plan that can be used by producers and salespersons.
    • Supply chain planning compares the demand forecast with the actual demand in order to develop a "master plan" (schedule), based on the multi-level sources and critical materials.

  • Creating Sales Force Structure, Territories, and Goals

    • "Sales potential forecast" can be used to determine sales targets and to help identify territories worthy of an allocation of limited resources.
    • A sales potential forecast is a forecast of the number of prospects and their buying power.
    • In a survey of nearly 200 senior marketing managers, 62% responded that they found the "sales potential forecast" metric very useful.

  • Conclude with Action Plan

    • It includes developing the content; describing the product or services and special features, creating a marketing budget that includes advertising and promotional needs, describing the business-its location any advantages or disadvantages it may have, the staffing developin a pricing strategy, forecasting the company's financial future and defining the market segment as well as the competition
    • Financial Forecast-assumptions, budgets, use of funds, monthly pro-forma, contribution margin analysis, break even analysis, prediction of future scenarios with corresponding action plan

  • Yield Management Systems

    • The models attempt to forecast the total demand for all products or services they provide, by market segment and price point.
    • With an advance forecast of demand and pricing flexibility, buyers will self-sort based on their price sensitivity (using more power in off-peak hours or going to the theater mid-week), their demand sensitivity (must have the higher cost early morning flight or must go to the Saturday night opera) or their time of purchase (usually paying a premium for booking late).
    • Good yield management maximizes (or at least significantly increases) revenue production for the same number of units, by taking advantage of the forecast of high demand and low demand periods.

  • Perishability

    • Demand can be difficult to forecast.

  • Effects of Technology on Services

    • Many SFA applications include insights into opportunities, territories, sales forecasts and workflow automation.
    • Sales analytics monitor client actions and preferences and augment sales forecasts and help measure the effectiveness of marketing campaigns.

  • Trends

    • There are thousands of forecasters who claim to be able to predict or at least determine the direction of future markets.

  • Service Marketing Management and Metrics

    • Marketing management therefore often makes use of various organizational control systems, such as sales forecasts, sales force and seller incentive programs, sales force management systems, and customer relationship management tools (CRM).

  • Analyzing Data

    • Predictive analytics focuses on application of statistical or structural models for predictive forecasting or classification.

  • Measuring Success

    • As with forecasts, the best or most realistic planning cycle will revolve around a quarterly review.