CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The heart of management in all level of responsibilities is the fundamental requirement of being able to communicate sales forecast have an effect in the dissemination of business information to the target market and general public. The task of business management would be simpler if industry was not continual state of change. This change is reflected in increasing competition precipitated to a large extent by the growth of global competition which has increased over the last decade.
Accurate forecasting or prediction of an event in a business environment in which and organizations exist is important in the design of productive sales force, structure and control over cost and profit.
This makes it difficult for an organization to forecast or predict their future prospect in terms of sales, cost and profit. Forecasting itself is a realistic estimate so as to currently anticipate what a buyer is likely to do under a given set of condition.
Forecasting helps management to anticipate the future and reduce uncertainty which limit their ability to plan effectively. Successful forecasting requires a skillful blending of art and science including experience, judgment and technical expertise.
1.2 Statement Of Problem
Most manufacturing companies perform poorly in terms of sales forecast. This is why several criticisms have been leveled against them. Huge sum of money is been expended on sales forecasting through marketing managers which draws the company’s finance. In spite of the benefits from sales forecasting in an organization, there is also the view that it is expensive consuming huge amount of money.
1.3 Research Questions
This research work is intended to ask the following questions:
(i) Does forecasting have any impact in marketing decision making?
(ii) Does forecasting method of sales help in marketing decision marking of an organization?
(iii) Does sales department witness a decline in sales a result of increase in price?
1.4 Objectives Of The Study
It is said that an undertaking without a purpose is an attempt to pave way for unproductive ventures. It is in this regard that the researcher has endeavoured to design, the purpose that has strictly adhered to are:
i. To investigate the effect of sales on marketing decision making.
ii. To determine if the forecasting method adopted is used consisting by the company.
iii. To be aware if the sales manager should be familiar with the method of forecasting in marketing decision making.
iv. To know if sales forecast is relevant to marketing decision making.