By Ubani Blessing Nnenna
In this work, sales forecasting practices in manufacturing firms have been discussed extensively. The focus is on the effects of sales forecasting on the growth and success of selected manufacturing firms in Enugu.
The study consists of five chapters. Chapter one reviews the historical background of sales forecasting and its nature globally. It also highlights the statement of problem, objective of study, research hypothesis, scope of study, limitations to study and significance of study. In chapter two, we have a theoretical framework and literature review of relevant literature in sales forecasting. Chapter three covers the research methodology while chapter four deals with analysis of data and hypothesis testing. We have the conclusion and recommendations for further study in chapter five.
This research employed sample survey. The empirical aspect was carried out using information obtained from sales/marketing managers of selected marketing firms involved in formalsales forecasting procedures supported with in formation from related published and unpublished materials.
The research formulated four hypotheses which were tested with the Chi-square decision criterion and all tests were conducted at 5% level of significance. In case one, the null hypothesis (HO) was rejected while concluding that manufacturing firms’ operating environment has much impact on the process and outcome of sales forecasts. Hypothesis two also rejected the null hypothesis (HO) and accepts that there is a relationship between a firm’s organisational structure and the outcome of the firm’s choice of sales forecasting practice. Hypothesis three rejects the null hypothesis (HO) proving that sales forecasting practice has a direct impact on a firm’s revenue and market powers. Hypothesis four, however, fails toreject the null hypothesis (HO) but concludes that the number of persons involved in sales forecasting has no direct relationship with the frequency of error occurrence in the process.