SALES FORCASTING

Question 1

sales forecasting

Answer 1

quantitative technique used to predict a firms levels of sales revenue over a given period of time

understaning the latest and expected market trends in the industry and the reasons behind those

based on historical sales figures an trends market analysis on the industry’s trends and the states of the economy predicting correlation

Question 2

benefits of sales forecasting

Answer 2

• supports and drives strategic planning in a business

helps identify and prepare for threats and opportunities

helps identify sales trends which helps to improve overall operational efficiency more ppl can be hired prior to peak season

Question 3

limitations of sales forecasting

Answer 3

• past data and sales trnds are not indicative of the future, the predicted results may be inaccurate as they ignore changes in the external business environment

-expensive and time consuming to collect realistic reliable data

limited uses for certain businesses (new businesses with no previous data, product oriented businesses, rapidly changing markets)