2.2.1 Sales forecasting Flashcards
1
Q
Give the definition of sales forecasting
A
Sales forecasting involves predicting future sales volume to inform key decisions
2
Q
What are factors affecting sales forecasting
A
- Actions of competitors
- Economic variables
- Consumer trends
3
Q
How can actions of competitors affect sales forecasts?
A
- Competitors releasing promotions or introducing new pricing strategies
4
Q
How can economic variables affect sales forecasts
A
- Inflation may lead to uncertainty in consumers, Low int rates leads to cheaper borrowing and higher unemployment leads to lower consumption
5
Q
How do consumer trends affect sales forecasting
A
- Rapid changes in demand or different buying habits
6
Q
What are some advantages of sales forecasting
A
- Helps predict staffing
- Increase or decrease stock?
- Marketing?
7
Q
What are some disadvantages of sales forecasting
A
- Consumer and economic trends may be volatile
- Data may not be accurate which they have used
8
Q
What are three purposes of sales forecasting
A
- Aids decision-making – staffing
- Does capacity need to be expanded (or reduced)?
- How much stock will be required?
