The fundamental strategy of sales forecasting can spell death or life to a business. Angelo Guadagno discusses how companies can master the science or art of sales forecasting to unleash its magic. He associates the activity to politics because of the exhaustive analysis and research that it requires (Guadagno, 16). Sales forecasting is vital to the firm since most operations or plans depend on it, be it competitive positioning, product strategy, staff choices, and budgets. The phenomenon controls the very health of a corporation. This article adopts a deeper perspective of Angelo’s excerpt concerning the usefulness of sales forecasting and suitable ways to tap its benefits.
Forecasting entails the aspect of predicting the occurrences that will take place in the future. The events are no doubt beyond the control of people. Sales managers agonize over market trends, computer data, and accounting activities. There are three ways that the executives can utilize to maximize the firm’s success: always having a backup plan, focusing on application and execution, and doing their homework. Angelo provides several assumptions that help with the understanding the information in his article. First, is that the enterprise already has a plan with quality services and goods that satisfy public demand (Guadagno, 17).
The second assumption is that the target markets are revenue-generating now and will be in the future. Thirdly, the company knows its margin goals. Lastly, the management intelligently and efficiently uses indirect and direct support and distribution channels to realize its initiatives. The writer then goes back to broaden the three strategies that can assist the corporation to increase its success. The homework for the executives is to carry out proper market research and identify partners. The management should look backwards and forwards to analyze market information explicitly (Guadagno, 18).
The partner relationships within an enterprise have an overwhelming impact. They include interactions with the distributors, suppliers, and other indirect groups. The second step is to focus on the application or execution of the data obtained in the homework exercise. The process involves giving accurate sales promotion materials and programs to the channels. The indirects or representatives must possess adequate training in the craft, in the firm’s culture, and the provision of services or products. They must express professionalism in their business dealings and presentations (Guadagno, 21).
The sales staff should be ready to cooperate so that the corporate strategy is accomplished. They should also make the headquarters aware of their activities and needs, stand by for sales calls, and return messages. The final step, that is, the Plan B, highlights that the firm has done its homework appropriately and provided its sales forecast. The query now is what they will do if the big plans and opportunities they have identified fail to materialize. The enterprise must always be ready to counteract the risk of failure by having a backup strategy or by instituting a fall-back position (Guadagno, 22).
Angelo’s ideas shed light on the proper techniques to handle sales forecasting. One of the most taxing and difficult periods of a business year is the preparation and execution of sales forecasting. The management no longer has to feel burdened with the issues that arise from the practice. They can now follow a detailed and well-articulated mechanism that can assist them to carry out sales forecasting stage by stage without leaving anything behind. The backup agenda will help the firm to prevent excessive loss of revenue or the risk of failure when their forecasting plans turn for the worst.
Work Cited
Guadagno, Angelo. Mastering the “Magic” of Sales Forecasting. The American Salesma, November 1995.
