2.2.1 Flashcards
1
Q
Why is Sales Forecasting useful?
(3)
A
Plan production for expected demand levels
Plan staff for demand levels
Build a cash flow forecast
1
Q
What is a Sales forecast?
A
A sales forecast is a prediction of future income based on historical data.
2
Q
What are the three factors affecting Sales forecasting?
A
Economic Variables
Consumer trends
Actions of competitors.
3
Q
What are economic variables?
A
Anything to do with economics ( Int rates, Inflation, Unemployment, disposable income)
4
Q
What are consumer trends?
A
Demographics and change in tastes.
5
Q
What are actions of competitors ?
A
Promotional changes
6
Q
What is (2) cons of sales forecasting?
A
Historical data may not repeat itself
Hard for small businesses as no historical data and requires skills workers
