Marketing forecasting is an integral part of a successful business
Marketing forecasting is an integral part of a successful business
Forecasting is the most complex activity in the marketing research system. Its results are used by the company to plan its activities. However, companies often work according to the reaction model rather than the anticipation model: that is, the event has already happened, and only then has the company reacted to it. There is little good in that. The essence of foresight is to be able to prevent negative consequences and anticipate development opportunities. Therefore, you should not react, but analyse, identify trends and make predictions.
Aims and objectives
Forecasting is an integral part of a company's successful operation, as it allows for effective budget allocation, anticipation of competitors' actions, and reduced reaction time to market changes. Marketing forecasting aims to identify trends in the development of the business and develop effective marketing activities to maintain the sustainability of the business in an uncertain environment.
Examples of tasks that can be solved using forecasting are:
Forecasting is an integral part of a company's successful operation, as it allows for effective budget allocation, anticipation of competitors' actions, and reduced reaction time to market changes. Marketing forecasting aims to identify trends in the development of the business and develop effective marketing activities to maintain the sustainability of the business in an uncertain environment.
Examples of tasks that can be solved using forecasting are:
- Determine the next goal of the company's development;
- Identify positive and negative external factors and foresee possible scenarios for the company's response;
- Improve the efficiency of the use of resources (human, financial, raw materials, etc.);
- Determine the timing of the launch of new products or services;
- Calculate sales and profits.
Marketing forecasting consists of interrelated processes with a common goal - to gather and process all the information needed to make decisions. The nature and number of these processes will depend on the size and direction of the business. Here are the most common ones:
- Study of trends (technological, scientific, marketing, social);
- Identifying the causes and consequences of market changes;
- Evaluation of internal processes - their efficiency, relevance, necessity;
- Search for alternative development paths;
- Formulation of various development strategy scenarios;
- Finding scientific solutions to improve the quality of goods or services;
- Identifying factors influencing market conditions.
Forecasting options
The result of marketing forecasting affects different business processes: some of them take years (e.g. construction of new production facilities), others require quick decisions and regular monitoring. Depending on the planning system, one of the following forecasting options is chosen
For example, you have studied the statistics and noticed a trend: people are leaving the cities and moving to housing estates. What does this mean? A likely increase in demand for building materials, garden furniture, garden tools and everything else associated with living in the countryside. There will also be a need to develop infrastructure in the cottage settlements. This means that opening a grocery store or a beauty salon could be a promising venture. This is an example of long-term planning.
An example of operational forecasting. Your online shop is expanding, new site features are needed, so a move to a new platform is planned. You need to anticipate what problems might arise and take steps to minimise their impact. In particular, moving your site may cause your search engine rankings to drop. It is therefore necessary to prepare in advance for operational work on SEO promotion.
The result of marketing forecasting affects different business processes: some of them take years (e.g. construction of new production facilities), others require quick decisions and regular monitoring. Depending on the planning system, one of the following forecasting options is chosen
- Long term: 5 years or more;
- medium term: 2 to 5 years
- short-term: from 1 year to 1.5 years;
- operational: monthly, seasonal, weekly.
For example, you have studied the statistics and noticed a trend: people are leaving the cities and moving to housing estates. What does this mean? A likely increase in demand for building materials, garden furniture, garden tools and everything else associated with living in the countryside. There will also be a need to develop infrastructure in the cottage settlements. This means that opening a grocery store or a beauty salon could be a promising venture. This is an example of long-term planning.
An example of operational forecasting. Your online shop is expanding, new site features are needed, so a move to a new platform is planned. You need to anticipate what problems might arise and take steps to minimise their impact. In particular, moving your site may cause your search engine rankings to drop. It is therefore necessary to prepare in advance for operational work on SEO promotion.
Effective marketing forecasting
Forecasting is a prediction made by studying statistical data and past patterns. Companies use software tools and systems to analyse large amounts of data collected over time. The software then predicts future demand and trends, helping companies to make more accurate financial, marketing and operational decisions.
Selpway Trading ltd uses the latest digital technology in market research, analysis and forecasting. The methodology and experience of Selpway's specialists allows them to make highly accurate forecasts based on statistics, sales history, information on shortages of certain goods, upcoming promotions and other dynamic data.
Forecasting is a prediction made by studying statistical data and past patterns. Companies use software tools and systems to analyse large amounts of data collected over time. The software then predicts future demand and trends, helping companies to make more accurate financial, marketing and operational decisions.
Selpway Trading ltd uses the latest digital technology in market research, analysis and forecasting. The methodology and experience of Selpway's specialists allows them to make highly accurate forecasts based on statistics, sales history, information on shortages of certain goods, upcoming promotions and other dynamic data.