2.2.1 Sales forecasting Flashcards
What is the purpose of sales forecasting?
Sales forecasts predict future revenues based on past sales figures
This helps businesses plan and allocate resources effectively.
What are some factors affecting sales forecasting?
Consumer trends, seasonal variations, fashion, long term trends
These factors can significantly impact the accuracy of forecasts.
What does sales forecasting predict?
Volume and value of sales, size of market, sales as a result of promotional activity, sales as a result of cyclical factors
These predictions help in strategic planning.
What determines staffing needs in sales forecasting?
Sales forecasts determine how many staff will be needed
This is crucial for resource management.
What does sales forecasting help to assess regarding stock?
How much stock will be required
Accurate stock levels prevent overstocking or stockouts.
What is a potential need identified through sales forecasting?
Does capacity need to be expanded?
Expansion may be necessary to meet projected sales.
What economic variables impact sales forecasting?
Economic growth, inflation, unemployment, interest rates, exchange rates
These variables can influence consumer behavior and spending.
What competitor-related factor can affect sales forecasts?
Competitors actions
Understanding competitors can provide insights into market dynamics.
True or False: The future is always the same as the past in sales forecasting.
False
Past performance may not accurately predict future outcomes.
What are some unexpected factors that can influence sales forecasting?
Fads and fashion, taste changes, economic factors, competitors actions, unexpected events
These can lead to sudden shifts in demand.
What biases can affect sales forecasting accuracy?
Experience bias, specialist opinion
These biases can skew the forecasting process.
What constraints might impact the sales forecasting process?
Budget and time constraints, competing priorities
These constraints can limit the resources available for accurate forecasting.
Fill in the blank: Sales forecasting requires skill, time, and the accurate use of _______.
timely data
Timely data is crucial for making accurate predictions.
What types of data are used in sales forecasting?
Past sales data, government data, media coverage, trade body predictions, competitor performance
A variety of data sources enhance the robustness of forecasts.
