2.2.1 Sales forecasting Flashcards
1
Q
define sales forecasting
A
the predictions of future sales volume and trends
2
Q
purpose of sales forecasting
A
to help businesses make decisions
3
Q
A
3
Q
finance factors of sales forecasting
A
- inform cash flow
- predict sales volume and revenue
- assess break even ability
- set budgets
4
Q
marketing factors of sales forecasting
A
- identify when promotional activity is needed
- plan distribution
5
Q
people factors of sales forecasting
A
- plan workforce needs: sales team, seasonal staff
6
Q
resource management factors of sales forecasting
A
- stock management
- required levels of output
7
Q
factors affecting sales forecast
A
- consumer trends
- shopping habits
- demographics
- economic variables
8
Q
list economic variables
A
- interest rates
- employment
- consumer confidence
- stage in economic cycle
- action of competitors
- changes in price and promotion
9
Q
difficulties of sales forecasting
A
- unknown future
- changing external environment
- time frame
- past is not indication of future
10
Q
where sales forecasting is likely to be inaccurate
A
- new businesses
- market subject to disruption from tech
- fashion items
- PeD
- changes in market share
- poor management sales
11
Q
A
