Process of forecasting Demand

Process of forecasting demand

There are three step is involved in forecasting demands

1. Demand depends on Microeconomics Growth :- The demand for product in most cases are directly related to microeconomics growth rate of the country. However, it is not necessary that growth rate of country must be reflected in the organization growth with same rate.

2. Industry Growth must be reflected in the growth of organization. for example a oil industry is growing with a substantial rate then it is expected that it will have positive impact on the growth of the organization.

3. Organization independent Growth objective :- we know that general growth rate and industry growth rate not necessary is to be reflected in the organization performances. The every organization has its own target and methods of achieving growth.

 The following are important aspect

1. What is current market share
2. What can attract new customer
3. What customer expectation from the market
4. how customer reacted previously