Targets and Forecast
The objective of the Sales and marketing team in any organization is to achieve the revenue targets. The targets are blue prints for the effective running of an organization.
The targets are set based on forecast and the expected growth for the organization and at a higher level. Thus the year after year revenue growth could be extrapolated and an estimate on the expected forecast are achieved. These targets are then disseminated into lower level targets resulting in fine-grained targets that are needed to be achieved at specific time frames. The sales team identifies are thus given targets and they are measured against these. The quality of this variance is used to measure the effectivness of the company performance as well as the sales promotions themselves.
The sales team are expected to be armed with many tools especially form the revenue management so that the output is contributing to the revenue. The global vs the Local View You are part of the shift in forecast Triggers are inputs to decision making The market knowledge and feedback This approach is encouraged by the reward and recognition schemes prevalent as part of the human resource programs . The two most important tools that the Sales force needs to be armed with, apart from advertising and promotion, are fares and seats, which need to be formulated in conjunction with Revenue Management.
Forecast = Model Built Forecast + Correction from last year + correction based on events + Correction based on higher level / perspectives.
Revenue Management Training
Revenue Analyst are qualified to perform
specific tests, Study process, Forecast and
build models that support revenue decsiions.
Revenue Manager are qualified to set up a revenue management section, carry out testing on revenue effectiveness and form guidelines and strategies for revenue management. They shall develop written procedure, prepare report and recommend conitinuouly to hone the objectives of the company. They can also train and supervise Level – I analyst. On the revenue plan they Obtain the concurrence of the key decision makers in the company. They will be familiar with all applicable codes, standards, and other documents that control the revenue science method being utilized.
Consultant are usually into Consultancy, Management positions in a Company.
They should be capable of establishing techniques and practice, interpreting codes, standards, and specifications,
They shall be capable of determining the particular method depending on the revenue situation and practice to be used.
They obtain the concurrence of the key decision makers in the company. They are also responsible for training and
examining Level I and Level II's.
What Can Forecasting give you and your company ?
While there are several acceptable techniques and procedures for forecasting, most forecasts utilize basic techniques such as regression or time series analysis.A forecast effort could involve a number of different techniques.
Forecast by Statistical Modeling:
Many time tested statistical models has proved to be very effective methods in determining the correct forecast. These are the regression models and Bayesian forecasting models. These automatically find relationships and forecasts.
Forecast based on last year:
Some products are highly seasonal and repeat at the same part of the year. These forecast could thus be a simple pick up of the actual of the last year with a flavor for this year based on the above models or intuition.
Forecast based on Time Series:
There are products that are more inclined towards what happened in the recent past as opposed to any thing last year. This kind of forecast takes the current growth rate more seriously while forecasting.
Forecast based on adhoc events and scenarios:
Forecast for an adhoc event (Olympics) where studying of factors related to that special event is necessary to forecast.
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