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.

Substance

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:

  1. A traditional market forecast would look at the market size and the market value.
  2. The market analysis should lead to developing strategic market focus. That means selecting the key target markets. This is the critical foundation of strategy.
  3. Set industry demand for each target market.
  4. Forecast the drivers of demand in each segment and project how they are likely to move.
  5. 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.
  6. 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!

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