This chapter provides a framework for forecasting. It explains the individual steps that form part of developing a forecast covering the planning horizon. The chapter shows that there are three different levels at which forecasting take place: Market Potential, Sales Potential, and Sales Forecast. The sales forecast might be determined bottom-up or top-down. The bottom-up process relies on the product manager exploring a number of different, plausible strategies alongside a set of forecasts which can be submitted to the board for their consideration. Yet views on organized business forecasting frequently go far beyond healthy scepticism towards an attitude of outright cynicism. A good forecast helps in the planning and control of production, distribution and promotion activity. The challenge when undertaking the market forecast is to refer back to the conclusions from people environmental analysis.