Sales Forecast 📈 Flashcards
What is the a forecast
A prediction Implemented to the business
What are the four components that are business like to identify and timeseries data?
The trend -
Raw data - figures may be hard to identify what is happening used to find trends 
Seasonal fluctuations -over years are unlikely to have constant sales
Cyclical fluctuations - highs and lows of figures
Random fluctuations- freak figure stand out from any trend taking 
Benefits of sale forecasting?
Informed for a sales forecast give businesses clearer decision
Allows the business to Plan orders- build relationship with Supplier
Enables business They have the capacity to meet orders - High sales - business can buy more equipment
Factors affecting sales forecasting? 2 types !
Difficult to compare useful for future outcomes
A) Consumer trends- aims to meet consumer needs products and services marketing- meet demands and given time
1) Seasonal variations- some products are purchased in small little greater quantities at different time
2)lower sales strategise and implement cash flow
Time series data set - an amount needed more products
3) Fashion - Consumer tastes and preferences unpredictable
4) Long-term trends - had long-term effect on products and services you provide
B) Through economical variables economic growth judged by GDP by economy
1) High economic growth business will expand due to consumer income
Consumer income - more disposable income
Opposite if opposite
2) Interest rates - charged by banks for borrowing money if lower interest rates attractive to customers opposite loans are used by consumers
3) Inflation - the rise of consumer prices over time if the company inflation increases sell less sale forecast reduced
4) Unemployment - number of people out of work less disposable income for sales forecast reduced
5) Exchange rates - rise cheaper for buyers in the UK to buy abroad increase competition demand falls sales forecasts falls
What are consumer trends?
The habits and behaviours of consumers around the product they buy and use 
What is the difficulties of sales forecasting?
Volatile consumer tastes and preferences -
use past sales to identify further sales not good for future prediction
Range of data -unemployment and your income difficulty accuracy of data
Subjective expert opinion and opinion plus knowledge can be biased and wrong 
What are the three actions of competition?
Type of strategy - short-term promotion no change annually
action of competitors affect -
reliability of timeseries data past sales - conditions of market change
Response - open New branch
What’s the technique used to predict future trends?
Timeseries analysis- Predicting the future using past data
What is the purpose of sales forecasts?
To predict future sales of the product
Avoid cash flow problems - help build a plan that could help the business Manchester production status and financing needs
Frees up management time - owners can spend more time developing that in this rather than responding to day-to-day developments as they prepared
Production capacity - Can estimate if they need to increase or decrease in production allowing them to deal with expected demand
Help them start promotional activity- is still the low it could be an indicator that they’re not getting enough demand if they’re not in the decline stage in the product life-cycle
