2.2.1 Sales forecasting

Question 1

What are the purposes of sales forecasts?

4

Answer 1

• HR plan (amount/skill of staff employed)
• Marketing budgets (boost sales of stars)
• Profit forecasts
• Production planning to satisfy demand booms

Question 2

What may consumer trends be affected by?

4

Answer 2

• Demographics
• Globalisation (^willing to buy oversea products)
• Affluence
• YED/PED (recession)

Question 3

What individual economic variables affect sales?

3

Answer 3

• > Pound
• Tax
• ^Inflation, >demand for luxuries

Question 4

How can actions of competitors leave sales forecast being optimistic?
2

Answer 4

• Changing price

- Promo campaign, steal market share

Question 5

What is the main difficulty of sales forecasts?

1

Answer 5

• Extrapolation (expect continuation of trends)