A well-constructed sales plan, combined with accurate sales forecasting, can allow you to spend more time developing your business rather than responding to day-to-day developments in sales and marketing. We’ve previously discussed the importance of sales forecasting and how to successfully create a sales forecasts for any business.
Often avoided, sales forecasts are still quite a popular measure of success used by many businesses, banks, and investment firms. So, it is particularly important to get it right. A solid sales plan always has a big element of market forecasting in it, and this blog is just about that.
Market forecasts what it is?
Market forecasts are a crucial part of a sales plan and overall business forecasts. Market forecasts help project the future numbers, characteristics, and trends in your target market. A standard analysis will also show the projected number of potential customers divided into segments.
Why you need a market forecast?
A good market forecast will help you reveal new market opportunities, and help improve the chance of business growth. A good market forecast will help reduce uncertainty and anticipate the change in the market as well as improve communication within a business and between a business and their customers.
It additionally helps to increase the knowledge of the market and any sales seasonality for organizations. In addition, a promising forecast can help persuade the investors who may be keen on investing in a business. Senior managers and finance use forecasts to get ready and assess financial plans, capitalize on production, and survey needs and logistics. A forecast can help educate basic choices on the most proficient method to distribute assets and set overhead levels inside a business: staff, lease, utilities, and other overheads.
Market forecast is all about substance and research that you get ready for it. Generally, a market forecast is an educated guess, however, combined with a good sales forecast it can help your business lead to a better or at least more stable future.
In order to create a good market forecast you need to look at a couple of things:
- A traditional market forecast would look at the market size and the market value.
- The market analysis should lead to developing strategic market focus. That means selecting the key target markets. This is the critical foundation of strategy.
- Set industry demand for each target market.
- Forecast the drivers of demand in each segment and project how they are likely to move.
- Subject your market forecast to a reality check. When you think you have a forecast, you need to find a way to check it for reality.
- And as usual… PESTL!
These are just some of the top-level interrogations that one needs to consider when thinking about the market forecast. Subscribe to our newsletter to learn more about running a market forecast by yourself!