EFFECT OF SALES FORECAST ON MARKETING DECISION MAKING
1.1 Background to the Study
The heart of management in all level of responsibilities is the fundamental requirement of being able to communicate sales forecast have an effect in the dissemination of business information to the target market and general public. The task of business management would be simpler if industry was not continual state of change. This change is reflected in increasing competition precipitated to a large extent by the growth of global competition which has increased over the last decade.
Accurate forecasting or prediction of an event in a business environment in which and organizations exist is important in the design of productive sales force, structure and control over cost and profit.
This makes it difficult for an organization to forecast or predict their future prospect in terms of sales, cost and profit. Forecasting itself is a realistic estimate so as to currently anticipate what a buyer is likely to do under a given set of condition.
Forecasting helps management to anticipate the future and reduce uncertainty which limit their ability to plan effectively. Successful forecasting requires a skillful blending of art and science including experience, judgment and technical expertise.
1.2 Statement Of Problem
Most manufacturing companies perform poorly in terms of sales forecast. This is why several criticisms have been leveled against them. Huge sum of money is been expended on sales forecasting through marketing managers which draws the company’s finance. In spite of the benefits from sales forecasting in an organization, there is also the view that it is expensive consuming huge amount of money.
1.3 Research Questions
This research work is intended to ask the following questions:
(i) Does forecasting have any impact in marketing decision making?
(ii) Does forecasting method of sales help in marketing decision marking of an organization?
(iii) Does sales department witness a decline in sales a result of increase in price?
1.4 Objectives Of The Study
It is said that an undertaking without a purpose is an attempt to pave way for unproductive ventures. It is in this regard that the researcher has endeavoured to design, the purpose that has strictly adhered to are:
i. To investigate the effect of sales on marketing decision making.
ii. To determine if the forecasting method adopted is used consisting by the company.
iii. To be aware if the sales manager should be familiar with the method of forecasting in marketing decision making.
iv. To know if sales forecast is relevant to marketing decision making.
1.5 Statement of the Hypotheses
The following hypothesis will be tested in the study:
- Sales forecast does not have any impact on marketing decision making.
- Sales department does not witness decline in sales when company increases price.
- The sales manager should not be familiar with sales forecasting.
1.6 Scope of the Study
The scope of this study focus mainly on the activities of sales department using the Nigeria Bottling Company located in Benin City as a case study, in marketing decision making. The study will look at the effects of sales forecast in marketing decision making and the problems associated with the administration of sales forecast in the company.
1.7 Significance of the Study
It is appropriate to say that this research work will be of great benefit to many people.
This research will benefit the producers with regard to the best forecasting techniques used in promoting their product of the target market.
Also, it will help management to know the importance of sales forecast in decision to the successful achievement of the company’s objectives with reference to their products. Finally, it brings about the experience of the consumers.
1.8 Limitations of the Study
Limitations encountered during the course of carrying out this study cannot be overemphasized. One of the problems was the problem faced with the respondents, some were not serious in answering the questions why some did not really give meaningful contributions toward this study for fear of given confidential information which could be used against them in the future.
Some of the questionnaires distributed to respondents were not returned because of their nonchalant attitude towards the study.
Another problem was inadequate time; it was not an easy task to continue this project research work with classroom work because the duration of the semester was very short.
Finally, the other important factor that limits this study is the problem of case study. In carrying out this research work, I discover that the perception of the employees toward sales forecast in their organization in relation to what is obtained in other organization are different. Because of this, the research work is strictly based on the Nigeria Bottling Company Plc, Benin City Edo State as a study.
1.9 Operational Definition of Terms
The following terms defined in this study is to aid understanding:
Forecasting: According to Katler and Keller (2006), marketing management forecasting is the act of anticipating what buyers are likely to do under a giving set of condition.
Sales Forecasting: According to Anyanwu (2000), marketing management sales forecasting is the act of predicting sales under a given set of conditions within a specified time period of one or more years.
Company Sales Forecast: According to Kotler (2006), marketing management company sales forecast is the expected level of company’s sales based on a chosen marketing plan and the assumed marketing environment.
Marketing: According to Mazur (2001), marketing is the delivery of a standard of living to society; This definition is an attempt to counter the criticisms of marketing especially by those who see it as an agent of corruption in the society.
Performance: This is the effort expended by the workers in the attainment of the desired objectives of the organization.
Organization: An organization is the co-ordination of the activities of a number of people for the achievement of the common goal through division of labour function and also through the hierarchy authority.
Management: This is a process of planning, organizing, directing and controlling activities to meet the objectives and goal of the organization