This document provides information about an individual named Vikash Kumar and discusses market research, sales forecasting, and forecasting methods. It defines market research as determining what to produce, who will purchase items, where purchasers are located, how much to manufacture, when to sell, and how to maximize profits. Sales forecasting is defined as estimating future sales of an item or products. The document outlines short-term and long-term forecasting and their purposes, including planning production, materials, purchases, and workforce. It also discusses forecast errors.

1. Name - Vikash kumar
B.Tech (Mechanical)
Roll no - 7595

2. MARKET RESEARCH
Thus market research is a scientific method of determining what to
produce , who the purchasers are, where are these located, how
much product/goods to manufacture , when to sell and how to sell in
order to maximize the service rendered and profits earned.
This is dynamic world in which profit opportunities are constantly
changing and efficient market research can only enable a producer
/ manufacturer to earn maximum while providing maximum
satisfaction to consumer.

3. SALE FORECASTING DEFINED
 Sale forecast is the estimate of amount of sale to be expected for a item/product
or products for a future period of time.
 Except the industries based on job order almost all the enterprises product in
advance to meet the future requirements.
 According to the “American marketing association” sale forecast is defined as
“An estimate of sale I dollars or physical unit for a specified future period under
a proposed marketing plan and under an assumed set of economic and other
forces out side the unit for which the forecast is made.

4. NEED FOR FORECASTING
The management of the enterprise can take decision reading
operation planning, scheduling , production programming
inventories of various type , physical distribution and projecting
cash generation and operating profits on the basis of sale
forecast.
Relation between product and consumer in earlier day
Manufacture Consumer

5. NEED FOR FORECASTING
Long term sale s forecasts can help in deciding investment
proposals such a modernization , expansion of existing units,
diversification of product line etc.
Sale forecast are essential to make proper arrangement for
training the man-power in its own unit or sending them to other
industries in the country or abroad to meet the future needs of
expertise.

6. TYPES OF FORECASTING
There are two types of forecasting
1. short term forecasting
2. long term forecasting

7. SHORT TERM FORECASTING
It may be defined is forecasting done for a relatively shorter
period. The period may be one month to one year depending
upon the nature on product.
 Generally this type of forecasting is done for period of one
year but if the market demand fluctuates forecasting may be
done only for short period.

8. PURPOSE OF SHORT TERM FORECASTING
Product policy: by knowing the future demand the decision regarding
production policy can be taken so that there is no problem of over production and
short supply of input materials.
Material requirement planning: by knowing the future demand , the
availability of right quantity and quality of materials could be ensured.
Purchase procedure: the purchase programme could be decided depending
on the material requirement.
Man-power requirement: the decision regarding recruitment of extra labour
on full time or part time could be taken.

9. LONG TERM FORECASTING
The forecasting that cover a considerable period of time , such as
5, 10, 15, 20 year is long term forecasting.
The period no doubt depends upon the nature of business or type
of the product the firm is engaged in manufacturing.
In many industries like steel plants petroleum refinery or paper
mills where the total investment for the equipment is quite high,
long term forecasting needs.

10. PURPOSE OF LONG TERM FORECASTING
To plan for the new unit of production, or expansion of the existing
unit or diversification of lines of production or shut down of the
existing unit depending upon the level of demand.
To plan the long term financial requirement for various needs.
To make proper arrangement for training the personnel so that
man-power requirement of desired expertise can be mat in future.

11. FORECAST ERRORS
The difference between actual demand and forecast demand,
stated as an absolute value or as a percentage. E.g., average
forecast error, forecast accuracy, mean absolute deviation,
tracking signal. There are three ways to accommodate
forecasting errors: One is to try to reduce the error through
better forecasting. The second is to build more visibility and
flexibility into the supply chain. And the third is to reduce the
lead time over which forecasts are required.