sales forecasting

Question 1

define sales forecasting

Answer 1

the predicting of the future sales volume and trends

Question 2

what is the purpose of sales forecasting

Answer 2

to help businesses make decisions

Question 3

list the factors affecting sales forecast include

Answer 3

finance, marketing, people, resource management, consumer trends, shopping habits, demographics, interest rates.

Question 4

list the economic variables

Answer 4

employment, consumer confidence, stage in economic cycle, action of competitors

Question 5

list the difficulties of sales forecasting

Answer 5

future is unknown and uncertain, changing external environment, unpredictable events, time frame, past is not a clear indication of the future, lack of perfect information

Question 6

when are sales forecasts likely to be inaccurate

Answer 6

new business, market subject to disruption from tech changes, demand sensitive to changes in price and income, product is a fashion item.