2.2.1 sales forecasting Flashcards
1
Q
define sales forecasting
A
sales forecasting is predicting of future sales, volumes and trends
2
Q
what is the purpose of sales forecasting?
A
- identifying trends and patterns
- marketing
- profit forecasts and budgets
- for cash flow forecasting
- production planning
3
Q
what factors affect sales forecasting?
A
- consumer trends
- economic variables
- action of competitors
4
Q
what economic variables affect sales forecasting?
A
- economic growth
- interest rates
- inflation
- unemployment
- exchange rates
these influence the level of demand and therefore sales in a market
5
Q
how does consumer trends affect sales forecasting?
A
- seasonal variations
- fashions and trends are constantly changing
- customer tastes and preferences are volatile
6
Q
how do action of competitors affect sales forecasting?
A
- changing price
- launching new products
- promotional campaigns/ marketing
7
Q
what are some difficulties with sales forecasting?
A
- doesnt take into account of any external shocks
- accuracy of data/ information
- volatile markets
- trends
- past is not a clear indication of the future
