Direct survey method is relatively simple and a practical method for forecasting demands, especially for new products.

Direct survey method
The direct survey method is a technique used to forecast the sales potential of a new product. It involves conducting surveys and collecting data directly from potential customers or target market segments. This method allows businesses to gather information about customer preferences, needs, purchasing behavior, and their likelihood of buying the new product.

Process of the direct survey method:
1. Identify target market: Before conducting the survey, it is essential to identify the target market or the specific group of customers who are likely to be interested in the new product. This helps in designing the survey questions and selecting the sample population.

2. Create survey questionnaire: A well-designed survey questionnaire is crucial for obtaining relevant and reliable data. The questions should focus on understanding customer preferences, their willingness to purchase the new product, factors influencing their buying decisions, and any potential barriers or concerns they may have.

3. Select sample population: The sample population refers to the group of individuals who will be surveyed. It is important to select a representative sample that accurately reflects the characteristics of the target market. This can be done through random sampling or stratified sampling techniques.

4. Conduct the survey: Once the survey questionnaire and sample population are finalized, the survey can be conducted. This can be done through various methods such as online surveys, in-person interviews, telephone surveys, or mail surveys. The survey should be administered in a consistent and unbiased manner to ensure accurate data collection.

5. Analyze and interpret the data: After the survey responses are collected, the data needs to be analyzed and interpreted. This involves summarizing the responses, identifying trends or patterns, and drawing insights from the data. Statistical techniques such as mean, median, mode, and regression analysis can be used to analyze the data and make predictions about the sales potential of the new product.

6. Forecast sales potential: Based on the data analysis, businesses can estimate the sales potential of the new product. This involves projecting the expected demand, market share, and revenue generation for the product. The forecasted sales potential can then be used for budgeting, production planning, and marketing strategies.

The direct survey method provides valuable insights into customer preferences and buying behavior, allowing businesses to make informed decisions regarding the launch and marketing of a new product. It helps in reducing the risks associated with introducing a new product by providing a realistic assessment of its sales potential.