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Regression Analysis

The document discusses different methods for sales forecasting including market tests, regression analysis, and setting sales quotas. It covers collecting data from market tests, using independent variables in linear and multiple regression analysis, and factors like accuracy, simplicity, cost, and availability for good sales forecasting methods.

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Maui Ong
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17 views1 page

Regression Analysis

The document discusses different methods for sales forecasting including market tests, regression analysis, and setting sales quotas. It covers collecting data from market tests, using independent variables in linear and multiple regression analysis, and factors like accuracy, simplicity, cost, and availability for good sales forecasting methods.

Uploaded by

Maui Ong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

A market test provides data about consumer actual purchases and


responsiveness to the various elements of the marketing mix.

2. On the basis of the response received to a sample market test, product


sales forecast is prepared.

2. Regression Analysis

1. Identifies a statistical relationship between sales (dependent variable) and


one or more influencing factors, which are termed the independent
variables.

2. When just one independent variable is considered (e.g. population


growth), it is called a linear regression, and the results can be shown as a
line graph predicting future values of sales based on changes in the
independent variable.

3. When more than one independent variable is considered, it is called a


multiple regression.

Elements of a Good Sales Forecasting:

1. Accuracy – The previous method must be checked for want of accuracy by


observing that the predictions made in the past are accurate of not.

2. Simplicity – The method must be simple and easily understandable.

3. Economy – For an undertaking, cost is a main factor so the method should


consider the minimum cost.

4. Availability – The technique must be able to produce meaningful results.

IV. Setting Quota

SALES QUOTA

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