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Market & sales analysis research
Market potential analysis
Sales forecasting
Qualitative forecasting methods
Quantitative forecasting method
Sales analysis
 Market research forms one of the major
  function of the MR department.
 It includes market potential analysis & sales
 These forecasting are crucial to all other
  departments for planning, production,
  ordering raw material, fixing price,
  promotional, scheduling the inventory &
  assessing the cash-flow.
  Market Potential Analysis
 Market potential analysis refers to
  studies that seek to determine the sales
  potential for individual markets.
 It sometimes used interchangeably with
  the term sales analysis.
 There are two different assumptions:
 1- Market Potential is not absolute &
  depends on the appropriate
  assumptions made, 2- Assumption
  concerning products substitutes can
  also be made.
Market Potential Analysis
 Use of market potential:
- Allocation of resources
 Structuring sales territories
 Setting sales quotas
 Methods of measuring market potential:
- Direct data method
- Corollary data method
       Sales forecasting
 It is one of the most   Techniques:
  important activity of    Qualitative:
  business planning.        Judgmental & subjective
 Many decisions            in nature used for long
  depends on it, i.e.-      range strategic planning.
  production &             Quantitative:
  inventory                 mathematical in nature,
  scheduling,               used for short range
  manpower planning,        strategic planning.
  raw material
  supplies, advertising    Casual
  outlays, sales force      Relationships: Used
  expenditures, cash-       for variety of planning
  flow management.          situations & helpful in
                            middle level planning.
Qualitative forecasting methods
Qualitative methods aren’t based
 exclusively on any mathematical
 model, even hey are based on
 judgment, opinion etc.
There are some qualitative forecasting
 methods are:
 1- Delphi Method,
 2- Nominal group techniques.
Quantitative forecasting method
 Quantitative forecasting uses a
  mathematical methodology to find & utilize
  the relationships between demand &
 There are methods for forecasting i.e.-
1- Simple Moving Average
2- Weighted Moving Average
3- Exponential Smoothing
  Sales Analysis
It is defined as the collection,
 classification, comparison & evaluation
 of an organization’s sales figures.
Sales figures are the most immediately
 visible & available means for judging
 how well an organization is performing.
The process of sales analysis is
 normally initiated with a study of the
 total sales volume.----
 Sales analysis
 The total sales volume can be
  categorized on the basis of territorial
  sales & can be subdivided on the basis
  of sales persons.
 Sources of sales information
 Sales analysis by territory
 Sales analysis by sales representative
 Sales analysis by product
 Sales analysis by customer & order size.
By: Sandeep Saxena
    Faculty member marketing
   HQ, Hyderabad

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