2.2.1 sales forecasting

Question 1

purpose of sales forecasts

Answer 1

businesses can see if they will need to increase their productive capacity

Question 2

factors affecting sales forecasts

Answer 2

consumer trends
economic variables
actions of competitors

Question 3

consumer trends

Answer 3

ageing population, body image, ready meals

Question 4

economic variables

Answer 4

interest and tax rates
inflation
unemployment rate
GDP
can affect how a business plans its sales forecasts especially the more income elastic products

Question 5

actions of competitors

Answer 5

competitors may affect sales forecasting

Question 6

difficulties of sales forecasting

Answer 6

historical data may not reflect future performance
seasonality may affect sales
natural disasters