Sales and marketing are interrelated disciplines that require careful planning and execution. The role of sales forecasting in marketing is important, since marketing is used to create and drive leads into a company's sales pipeline.
Companies use sales forecasting to determine the existing level of demand in the marketplace, as well as future demand for a company’s products or services. Forecasting can be used to predict sales revenue at a company-wide level, as well as for individual business units or product lines.
Sales forecasts directly influence a company’s marketing plan. The marketing department is responsible for how customers and prospects perceive its products and services versus its competitors, and uses the sales forecast to assess how marketing spending can channel demand and increase sales.
It is common for a company to use data from past marketing campaigns to create its sales forecast. For example, an organization may look at the number of responses from an old television ad campaign that helped increase sales during a particular season or month.
- tutor2u: Sales Forecasting
- Statistical Forecasting: Importance of Sales Forecasting
- "Principles of Marketing"; Philip Kotler and Gary Armstrong; 2001
Bridgette is an aspiring yogini, newbie coder and seasoned marketing writer in the higher ed space. She's written hundreds of articles on a wide range of topics including, entrepreneurship, K-12 pedagogy and information technology. Bridgette's work has appeared on Connect: IT at NYU, Noodle Pros, QuickBooks Small Business Center, Trails.com and USA Today.