2.2.1 - SALES FORECASTING

Question 1

What is Sales Forecasting?

Answer 1

it ESTIMATES the VOLUME or VALUE of future sales using market research or past sales data

Question 2

What are 3 Purposes of Sales Forecasting?

Answer 2

• STOCK CONTROL
• HUMAN RESOURCES - to employ more workers to cope with seasonal DEMAND
• AVOID CASH FLOW PROBLEMS

Question 3

What are 3 factors that affect Sales Forecasts?

Answer 3

1. Consumer Trends
2. Economic Variables
3. Action of Competitors

Question 4

How does Consumer Trends affect Sale Forecasting?

Answer 4

• seasonal variations
• fashion
• long term trends

Question 5

How does Economic Variables affect Sales Forecasting?

Answer 5

• interest rates

- economic growth

Question 6

What are 3 difficulties of Sales Forecasting?

Answer 6

• no guarantees
• dynamic markets
• short term thinking