3.3.1 Quantitative sales forecasting Flashcards
1
Q
What is quantitative sales forecasting? (QSF)
A
QSF is a statistical technique which uses data to make predictions about the future.
1
Q
What can a business do with QSF information?
A
-Organise production
-Organise resources in the business
-Organise marketing to back up the sales predictions
2
Q
How do you calculate 3 period moving average
A
Add up 3 years and / by 3.
This = the middle years average.
3
Q
How do you calculate a four quarter moving average?
A
Sum of four quarter’s divided by 4
4
Q
What are the limitations of quantitative sales forecasting?
A
-Past performance is no guarantee of the future.
-Businesses must appreciate the SWOT + PESTLE factors that may affect future predictions.
-In high tech markets, changes happen rapidly.
-Time consuming and complex.
