MS 09 IGNOU MBA Solved Assignment - With reference to the marketing approach of demand measurement explain any two important sources of data used in demand forecasting.

With reference to the marketing approach of demand measurement explain any two important sources of data used in demand forecasting.

Ans :

demand forecast is the prediction of what will happen to your company's existing product sales. It would be best to determine the demand forecast using a multi-functional approach. The inputs from sales and marketing, finance, and production should be considered. The final demand forecast is the consensus of all participating managers. You may also want to put up a Sales and Operations Planning group composed of representatives from the different departments that will be tasked to prepare the demand forecast.

Determination of the demand forecasts is done through the following steps:

•  Determine the use of the forecast

•  Select the items to be forecast

•  Determine the time horizon of the forecast

•  Select the forecasting model(s)

•  Gather the data

•  Make the forecast

•  Validate and implement results