Question

Some would argue it is the responsibility of marketing and sales to come up with the forecasts and not finance. What is your reaction to this statement? Please explain

Answer 1

I would say its the joint responsibility of both the functions in preparing forecast

Marketing & Sales roles in preparing forecast:

1) Estimate demand for goods in market by studying the past data product wise and sending the information to finance for further analysis

2) Provide useful data on how is industry responsing to product

3) Providing region wise details of sales they are capable of doing viz a viz competitors

4) Providing details of new initiatives which might impact the forecase

Finance role in preparing forecase:

1) Use the data from sales team and analyse it further

2) Communicate the sale team about the availability of funds and resources

3) Prepare draft forecase and get feedback from sales and marketing