It’s a great day in sports analytics! Sales forecasting has been a growing trend in the world of sports, where it has been used in an attempt to predict outcomes of games. Today we will be stepping into sales forecasting and the business model relating to sports analytics.
Sales forecasts are quite essential in sports analytics. The prediction markets offer a very promising approach for the prediction of future events. They are now increasingly being deployed to collect information on sporting events, fan behaviors and memorabilia, etc.
Throughout our lives, we make thousands of forecasts, most of the time without realizing or giving the deserved importance to this activity. In the case of sports organizations, this cannot be the case, as they generally cannot make sound decisions without making informed forecasts.
Sports sales forecasts are the estimate of future sales, taking into account the environmental conditions. It is carried out based on the analysis of the trends, trying to deduce to what extent the historical data of invoicing will influence in the future, and of the analysis of other influential factors: factors of the environment, evolution of the sector, potential of sales of the company, the quality and price of the product or service, analysis of the competition, etc.
When you make a sales forecast, remember that it is very important that you consider three possible scenarios:
- A positive one where sales are increasing
- A neutral one where sales are maintained
- A negative one in which sales are nosediving
The general sales forecasts seek to find out what part of the market potential we can achieve for our company, given our economic, technical and human possibilities. The forecast for sales is a process that consolidates the participation and influences of other functional areas within the organization.
Such influences can occur in two ways:
- Unidirectional: This refers to the fact that forecast sales influence the decisions taken by other functional areas
- Bidirectional: This is where the forecast is used to quantify the market effects according to the changes foreseen by other functional areas.
Therefore, we intend to define our sales potential based on:
- The total capacity of the market.
We need to ask the following while making a sales forecast.
Is there a potential market?
Is the market accessible to us? Can we overcome barriers to entry in the market? Can we achieve a sufficiently good positioning that allows us to sell?
How is the competition doing? Does it satisfy its consumers? What part of this market could we take away? Will our survival depend on just a general market growth?
How are the forecasts?
- According to time: Immediate, short, medium or long term.
- According to the type of data: Subjective (on opinions or personal intuitions), statistics (on internal historical data), economic (on external historical data).
- According to the nature of the product: The provisional methodology is different if it is a pre-existing product in the company, or in the market, or it is totally new.
According to the amplitude: We can make forecasts only about our products and sales, but also especially on the market with more or less breadth.
Benefits of carrying out a sales forecast
- It improves interdepartmental communication
- Improves the profitability of procedures
- Improves customer service
- Helps anticipate and solve future anomalous situations
- Improves the forecast of human capital
- Reduces product rotation
- Avoids breakage of stock
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