What are some forecasting basics for product managers ?
- A general set of definitions is summarized below, where product mangers are typically responsible for the following:
- Total Addressable Market: Determining the total size of a desired market
- Attainable Market Share: Deciding what portion of that market the product can penetrate
- Figuring out the number of units or the volume that the sales team can commit to sell
- Calculating the number of units of tangible product that can be produced, which is called demand planning
- Determining realistic pricing for the product and how that pricing will vary over time
- Translating the sales and demand forecast into a realistic budget for the product
- The above sequence can be linked to product management life cycle model
Product managers will have a broad understanding of the key forecasting areas to focus on while planning.
Source: Haines, S. (n.d.). The Product Manager’s Desk Reference.