Role of Sales Forecasting in Marketing

by Bridgette Austin - Updated September 26, 2017
Sales forecasting is directly tied to a company's marketing plan.

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.

Function

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.

Significance

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.

Video of the Day

Brought to you by Techwalla
Brought to you by Techwalla

Time Frame

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.

References

About the Author

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.

Photo Credits

  • sales text green down image by Nicemonkey from Fotolia.com
Cite this Article A tool to create a citation to reference this article Cite this Article