Definition: In Substitution Method or a Replacement Method, the management first works on the sales forecast of the existing product, using any methods of forecasting and then uses this data to forecast the sales of a new product that will be launched as a substitute for the old product. Simply, the method used to forecast the sales of a new product on the basis of the sales … [Read more...] about Substitution Method
Market Share Method
Definition: The Market Share Method is yet another sales forecasting method, wherein the company first works on the industry forecast, then applies the market share factor and then finally arrive at the company’s forecast. Simply, the company’s sales forecast is deduced from the data gathered on the industry sales and from the market share of the company. The market share of … [Read more...] about Market Share Method
End Use Method
Definition: Under the End Use Method, also called as the User Expectation Method, the list of several users of the product under forecasting is prepared first, who are then asked about their individual purchasing patterns and then from such information the complete product demand forecast is ascertained. Simply, the method used to know the buyer’s likely consumption of the … [Read more...] about End Use Method
Sales Force Composite Method
Definition: The Sale Force Composite Method is a sale forecasting method wherein the sales agents forecast the sales in their respective territories, which is then consolidated at branch/region/area level, after which the aggregate of all these factors is consolidated to develop an overall company sales forecast. The sales force composite method is the bottom-up approach … [Read more...] about Sales Force Composite Method
Survey of Expert’s Opinions
Definition: In Survey of Expert's Opinions, the specialized group of people in the concerned fields, from both inside and outside the organization, are approached and asked to give their opinions on sales trend. The Survey of Expert's Opinions is the most common method of sales forecasting, employed by the organizations. This method is also based on the judgment of … [Read more...] about Survey of Expert’s Opinions
Jury Method
Definition: The Jury Method also called as an Executive Opinion Method is a sales forecasting method, wherein the executives from different departments come together and forecast sales for the given period, on the basis of their experience and specialization. The jury method is based on the judgments, the top executives of Marketing, HR, Finance, Production department come … [Read more...] about Jury Method
Sales Forecasting
Definition: Sales Forecasting is the projection of customer demand for the goods and services over a period of time. In other words, it is the process that involves the estimation of sales in a physical unit that a company expects within a plan period. There are a variety of methods available to the firm for forecasting sales or demand of a company; these are listed … [Read more...] about Sales Forecasting
Kiosk Banking
Definition: The Kiosk Banking is the initiative taken by the RBI for those living in villages or other remote areas who are deprived of banking services due to the non-availability of a bank branch in their locality. In such arrangement, the person is not required to go the bank to avail the banking services. Instead, the bank comes to the village where the person can make the … [Read more...] about Kiosk Banking
Blue Chip Stock
Definition: The Blue Chip Stock refers to the high valued shares of the well-established companies which are financially very sound and capable of successfully weathering any economic condition. Simply, the stock of nationally reputed companies which are known for their abilities to generate revenues in good or bad times and giving the dividends every time to its shareholders … [Read more...] about Blue Chip Stock
Traveler’s Cheque
Definition: The Traveler's cheque is an exchange medium that can be used as a substitute for the hard currency. As the name suggests, these cheques are issued to the individuals who travel on vacations to overseas. The Traveler's cheque provides a lot of convenience to those who travel to foreign countries, as they are not required to carry excess cash along with them and … [Read more...] about Traveler’s Cheque