Module 3

Question 1

What is sales forecasting

Answer 1

It refers to the prediction and projections of estimated sales within a certain period of time

Question 2

What is the purpose of sales forecasting

Answer 2

1 To determine how much the business can sell
2 to determine the duration of the sales potential
3 to determine the marketing plan
● in terms of the product
● in terms of the place
● terms of the promotion
● terms of the price

Question 3

Benefits derived from sales forecasting

Answer 3

1 improves the cash flows
2 give the business knowledge regarding the consumers’ needs and wants
3 ability to determine the production capacity
4 ability to determine the marketing plan
5 ability to analyze the investment returns

Question 4

What are the factors influencing the expected sales volume

Answer 4

1 Condition within the business
● internal measure and are controllable by the business
2 Condition within the Indutry
● external and uncontrollable by the business
3 Changes in market Condition
● any changes occur due to the market characteristics surely because of the high demand ,supply etc
4 General business Condition
Caused by the politics,economics and law

Question 5

What are the sales forcasting methods

Answer 5

1 Jury of execuctive opinion
2 Delphi technique
3 Sales force compsite
4 time series analysis
5 users expectation
6 indicators

Question 6

what are the factors influencing the sales forecasting

Answer 6

1 Time Availability
2 Availability of data{information}
3 peronnel
4 accuracy
5 product of service