Demand Forecasting Flashcards
1
Q
What is “Sales Forecast” and why is it needed?
A
A sales forecast is a prediction of the number of units you believe you can sell in the year ahead.
It is needed to:
1) Ensure that you are producing enough of your products to meet the demand of your consumers
2) Avoid wasting money and factory resources in unnecessarily overproducing products
2
Q
Market Potential
A
Maximum total sales of a product by all firms to a segment during a specific time period under specific marketing efforts by those firms
3
Q
Sales Forecast (compared to Market potential)
A
total sales of a product that one firm expects to sell during a specific time period under its planned marketing efforts
