Chapter3‎ > ‎

Sales Forecast

The sales forecast indicates the expected sales to a Joined product-market during a specified-time period. The industry sales forecast is the total volume of sales expected by All firm; serving the product market. The sales forecast can be. no greater than market potential and, typically, falls short of potential, as discussed above. A forecast can be made for total sales at any product-market level (generic, product-type, variant) and for specific subsets of the product-market (e.g., market segments). A sales forecast can also be made for sales expected by a particular firm. An interesting forecasting situation is estimating the growth in sales for a product in a country where present market penetration is very low. Consider, for example, projecting the number of new telephone lines in India from 1994 to 2000. In 1994 the number of telephone lines as a percentage of the population was only 1 percent in India.16 The potential for sales is huge as India's consumers increase their ability to buy It is  likely that the number of telephone lines will grow rapidly. One forecast is that the fewer than 10 million new lines in 1994 will increase to 24 million by 2uOO