The jury of executive opinion method for sales forecasting involves experienced managers giving their estimates for sales, either individually or as a group, and it has both pros and cons.
This method of sales forecasting relies on the opinion or judgement of a group of
experienced managers. The managers are asked to provide sales estimates for proposed
and current products. Jury of executive opinion is still one of the most frequently
used methods, since various factors generally outside the knowledge of consumers,
such as the competition, economic climate and union activities, can be taken into
account. With this method, either one executive gives an opinion (usually in smaller
organisations) or a number of executives are consulted. Two different approaches can
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be used. In the first approach, the organisation asks each of the executives to provide
a forecast for estimated sales; this data is then combined and an average determined.
In the second, all the executives meet and each provides an estimate, and then
differences are discussed by group members until consensus is reached. The method
relies on experienced executives, and the skills and experience required to provide
accurate estimates can take years to develop. Jury of executive opinion forecasting has
a number of advantages and disadvantages
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