Question

Which method of demand forecasting is best suited for a new product?

Answer 1

Answer:

Collective Opinion or Sales Force Competitive Method:

Under this method, the salesman are nearest persons to the customers and are able to judge, their minds and market. They better understand the reactions of the customers to the firms products and their sales trends. The estimates of the different salesmen are collected and estimates sales are predicted.

These estimates are revised from time to time with changes in sales price, product, designs, publicity programmes, expected changes in competition, purchasing power, income distribu­tion, employment and population. It makes use of collective wisdom of salesmen, departmental heads and top executives.

disadvantage of this method :This method can be used only for short-term forecasting.

For long-term planning it is not useful

i hope it will help you

Answer 2

Answer:

Explanation:

The demand of new product can be forecasted by anyone of the following techniques:

Substitute Approach.

Evolutionary Approach.

Buyers or consumers view.

Vicarious approach (or Experts' opinion)

Sales experience approach (or Market test method)