Chapter 5

Question 0

Sales potential

Answer 0

Portion of the market potential that a particular firm can reasonable expect to achieve

Question 1

Market potential

Answer 1

Estimate of the possible sales of a commodity, a group of commodities, or a service for an entire industry in a market during a stated period under legal conditions

Question 2

Sales forecast

Answer 2

An estimate of the dollar or unit sales for a specified future period

Question 3

Sales quotas

Answer 3

Sales goals assigned to a marketing unit for use in managing sales efforts

Question 4

Subjective forecasting methods

Answer 4

Do not rely primarily on sophisticated quantitative analytical approaches in developing the forecast

Question 5

User expectations

Answer 5

Method of forecasting sales aka buyers intentions method

Relies on answers from customers regarding their expected consumption or purchases of the product

Question 6

Sales force composite

Answer 6

Method of forecasting sales

Initial input is the opinion job of each member of the field sales staff

Question 7

Jury of executive opinion

Answer 7

Method of forecasting
Formal or informal internal poll of key executives within the selling company in order to gain their assessment of sales possibilities

Question 8

Delphi technique

Answer 8

Method of forecasting
Uses an iterative approach with repeated measurement and controlled anonymous feedback, instead of direct confrontation and debate among the experts preparing the forecast

Question 9

Objective forecasting methods

Answer 9

Rely primarily on more sophisticated quantitative analytical approaches in developing the forecast

Question 10

Market test

Answer 10

Placing a product in several representative geographic areas to see how well it performs and then projecting that experience to the market as a whole

Question 11

Time series analysis

Answer 11

Method of forecasting

Rely on the analysis of historical data to develop a prediction for the future

Question 12

Moving average

Answer 12

Method of forecasting

Average of a number of years sales

Question 13

Exponential smoothing

Answer 13

Type of moving average

Weights most recent observations heaviest vs equally

Question 14

Decomposition method

Answer 14

Applied to monthly or quarterly data where a seasonal pattern is evident and the manger wishes to forecast sales not only for the year but also each period in the year