Qualitative Method:

Usually the quantitative methods are based on judgments about the casual factors that underlie the sales of particular products or services and on opinions about the relative likelihood of those factors being present in the future. These methods are sophisticated to a varying degree depending upon the opinion forming means. Some of the qualitative forecasting methods mentioned below.

Executive Committee Consensus

A committee comprising executives from various departments is formed to develop sales forecast taking inputs from all of the parts of the organization. This method leads to a compromise forecast.

Delphi Method

This is a repetitive method in which executives of a committee anonymously answer a series of questions on successive rounds which is fed back to all in the next round. This leads to an ultimate agreement in spite of initial disagreement.

Survey of Sales Force

Estimates from future regional sales forces form all of the regions are combined which are further transformed into a sales forecast by managers. This requires good communication system between the company and the sales people.

Survey of Customer

Direct estimates of future sales for purchase in different time periods from the individual customers are taken.

Historical Analogy

This method correlates the future sales demand of a product along with a similar product. This is helpful in case of forecasting sales of new products.

Market Research

Mail questionnaires, telephone interviews, or field interviews form the basis for testing hypotheses about real markets and statistical extrapolation of products marketed in targeted regions is done. This is preferred for introduction of product into new market segment.