Market forecasting is an important constituent of market analysis. It estimates applicable future values, trends and the nature of your target market based on specific attributes. A standard analysis should show the applicable number of potential customers broken down by market segments.
A market forecast is an estimate, and not a hard number. The way to arrive at a forecast is through conducting appropriate market research in order to estimate populations of target users in each segment and the annual growth rates for each.
Some forecasts may also carry an indication of market value in terms of importance of market segment based on total spending versus size of the market, specific market characteristics that are more conducive to making a sale and so on.
The values in a market forecast tabulation should necessarily include the average purchase per customer and the market potential
Market Forecast Accuracy
It is always important to verify a market forecast for accuracy. This can be achieved by extrapolating numbers to the size of individual segments, assessing competitor sales and trend analysis for market size.
An accurate market forecast can help a company determine it's market and customer segmentation, price, placement and positioning.
infoAnalytica helps companies perform accurate market forecasts using it's expertise in management consulting and primary and secondary research.