2.2.1 Sales Forecasting

Question 1

What are approaches to sales forecasting

Answer 1

• market research

- backdata ( economic forecasts)

Question 2

How economic variable affect sales forecasting

Answer 2

Combine to influence the level of demand and therefor sales in the market
E.g. economic growth 
- interest rates 
- inflation 
- unemployment 
- exchange rates

Question 3

How do consumer trends have an influence on sales forecasting

Answer 3

Businesses need to understand customer needs and wants to provide suitable supply.
Need to take habits and behaviours into account

Question 4

Why are actions of competitors important

Answer 4

Because a business needs to be able to judge and react to competitors changes to either still be able to compete or deal with things like less customers cause they can’t

Question 5

What are some limitations of forecasting

Answer 5

• fluctuations in economic variable
• data used
• volatile markets ( unpredictable)
• Subjective expert opinion