Скачать или смотреть Demand Forecasting & Steps | Economics | VNSGU | B.com sem 1 Demand

Demand forecasting:
Demand forecasting is a technique to predict and anticipate the future demand of a firm's product.

Steps Involved in Demand Forecasting:
(1) Period of Forecast :
As a first step it is necessary to decide about the length to be covered for forecasting, that is, whether it is for short period or for long period. Short term demand forecasting is made within the limits of the existing available resources, while long term demand forecasting involves the planning for additional resources.
(2) Level of Forecasting :
Demand forecasting is generally undertaken at four different levels :
macro - economic level
Industry Level
Firm Level
Product line level
(3) Purpose of Forecasting:
The firm should be clear whether it should have a general forecast or a specific forecast. It is easier for the firm to go in for general forecasting. However, it will be very useful if the general forecast is split into specific forecast with reference to products, area of sale, domestic and export market etc.
(4) Nature of the Product :
The scope of forecast varies according to the nature of the product. Thus, for example, problems and methods of demand forecasting are different for an established product and for a new product. Likewise, it is also important to classify products according to their end use like capital goods, consumer-durables and consumer non-durable goods etc. For each category of these goods, the pattern of demand may be different and therefore separate forecasting is required to ascertain their demand in the market.
(5) Nature of Competition :
It is also necessary for a firm to know the nature and extent of competition prevailing in the market.
(6) Selection of an Appropriate Method:
Selection of an appropriate method of demand forecasting is an equally important task. This may be done after taking into consi deration the nature of the product, area of investigation, resources available with the firm, availability of data etc. Likewise, different methods have to be adopted for short term and long term forecasting
(7) Interpretation of Results :
The results of demand forecasting should be very carefully analysed before any inference is drawn out of them. Efficiency of forecast depends, to a large extent, on the efficiency in the interpretation of its results. The results of demand forecasting are to be well-supported by the background factors, like government policy, general business environment, international political and economic scene etc. which have not entered the exercise of forecasting.
(8) Miscellaneous Factors :
Besides, certain other factors have also to be taken into account which influence the scope of demand forecasting. These include impact of risk and uncertainty, degree of accuracy in forecasting. special features peculiar to the product and market, socio psychological factors, changes in the composition of population, distribution of money-income etc.

#DemandForecasting
#ForecastingSteps
#BusinessPlanning
#MarketAnalysis
#SalesForecast
#PredictiveAnalytics
#BusinessStrategy
#learnwithhimanshunandwani
#himanshunandwani
#bcomsem1
#economics
#vnsgu
#educationalcontent