Subjective methods of sales forecasting
Posted: Sun Dec 22, 2024 8:54 am
They are based not on figures that are obtained empirically or taken from statistics of past sales, but on the personal point of view of the situation of specific specialists.
User Expectations
The method of user expectations has a second name – the method of potential customers’ intentions. It is based on the voiced desire of consumers to purchase a particular type of product.
When making a forecast of the volume of philippines whatsapp sales of products, the use of this method gives indicators according to which it is possible to more realistically estimate the sales potential or market capacity, rather than to forecast the level of sales. Analysis of user expectations is more attractive for use in assessing the feasibility of entering a specific market or its segment. But it is better not to use it for forecasting sales. This is explained by the fact that there is a very large difference between the desire to buy and the actual purchase, which can be overcome with the help of a marketing sales strategy. And when entering the market with an offer of new goods or services, this must not be forgotten.
This method has a number of significant shortcomings. An organization can often invest significant amounts in marketing, but despite this, sales of a new product will be low. According to calculations, the situation is different, the product should sell well. This leads to the conclusion that sales forecasting based on the analysis of buyers' intentions can give incorrect results.
User Expectations
In order to plan your future business activities, you need to know the expectations of users from goods or services. For example, buyers want to reduce the time they spend on purchases. A business can only satisfy this need if it has reliable information about demand and market preferences. The result of this may be a decision to open or build a supermarket in a residential area. You can also organize trade on an online platform with subsequent delivery.
Using the customer expectations method in forecasting the sales of a company's products is fraught not only with possible errors, but also with the collapse of the business. As an example, we can cite the Kawasaki company with its attempt to enter the jet ski market. At that time, the company was the leader in the motorboat market and decided to study consumer preferences. They received information that a model with a large legroom would be in particular demand, since at that time all jet skis were without seats.
All the company's efforts were focused on creating a product that would have maximum comfort. The result was the construction of the best equipment in its class. But while Kawasaki was designing, developing and promoting its motorcycle, competitors brought a model with a seat to the market. Naturally, all buyers preferred to take more comfortable equipment, so the competitors outplayed the Kawasaki company.
The user expectation method works well only if it is used in conjunction with other sales forecasting techniques that can help draw more accurate conclusions.
It is important to understand that the consumer is prone to subjectivity and has a limited view of the problematic situation. And this is understandable: an ordinary person cannot be a professional in developing new products. He can simply evaluate an existing product, express an opinion on what can be improved in this product. But this should in no way be considered a recommendation for solving all problems. For example, users would like to have a laundry room near their home or a car with a large interior and good cross-country ability. Henry Ford said it well: "If I did everything my consumers wanted, I would stop making cars and switch to producing fast horses."
User Expectations
The method of user expectations has a second name – the method of potential customers’ intentions. It is based on the voiced desire of consumers to purchase a particular type of product.
When making a forecast of the volume of philippines whatsapp sales of products, the use of this method gives indicators according to which it is possible to more realistically estimate the sales potential or market capacity, rather than to forecast the level of sales. Analysis of user expectations is more attractive for use in assessing the feasibility of entering a specific market or its segment. But it is better not to use it for forecasting sales. This is explained by the fact that there is a very large difference between the desire to buy and the actual purchase, which can be overcome with the help of a marketing sales strategy. And when entering the market with an offer of new goods or services, this must not be forgotten.
This method has a number of significant shortcomings. An organization can often invest significant amounts in marketing, but despite this, sales of a new product will be low. According to calculations, the situation is different, the product should sell well. This leads to the conclusion that sales forecasting based on the analysis of buyers' intentions can give incorrect results.
User Expectations
In order to plan your future business activities, you need to know the expectations of users from goods or services. For example, buyers want to reduce the time they spend on purchases. A business can only satisfy this need if it has reliable information about demand and market preferences. The result of this may be a decision to open or build a supermarket in a residential area. You can also organize trade on an online platform with subsequent delivery.
Using the customer expectations method in forecasting the sales of a company's products is fraught not only with possible errors, but also with the collapse of the business. As an example, we can cite the Kawasaki company with its attempt to enter the jet ski market. At that time, the company was the leader in the motorboat market and decided to study consumer preferences. They received information that a model with a large legroom would be in particular demand, since at that time all jet skis were without seats.
All the company's efforts were focused on creating a product that would have maximum comfort. The result was the construction of the best equipment in its class. But while Kawasaki was designing, developing and promoting its motorcycle, competitors brought a model with a seat to the market. Naturally, all buyers preferred to take more comfortable equipment, so the competitors outplayed the Kawasaki company.
The user expectation method works well only if it is used in conjunction with other sales forecasting techniques that can help draw more accurate conclusions.
It is important to understand that the consumer is prone to subjectivity and has a limited view of the problematic situation. And this is understandable: an ordinary person cannot be a professional in developing new products. He can simply evaluate an existing product, express an opinion on what can be improved in this product. But this should in no way be considered a recommendation for solving all problems. For example, users would like to have a laundry room near their home or a car with a large interior and good cross-country ability. Henry Ford said it well: "If I did everything my consumers wanted, I would stop making cars and switch to producing fast horses."