Sales Forecasting (2.2.1)

Question 1

What is Sales Forecasting?

Answer 1

Predicting future sales to allow a firm to make appropriate decisions in the future

Question 2

What does Sales Forecasting allow a firm to do?

Answer 2

-Employ the right amount of staff
-Accurately predict cash flow
-Accurately predict profit
-Buy the right amount of raw materials
-Find an appropriate location

Question 3

What factors might affect sales forecasting?

Answer 3

Political
Economic
Social (Trends)
Technological
Legal
Environmental
Competition

Question 4

What’s the most common way to forecast sales?

Answer 4

look at past sales trends

Question 5

Why is sales forecasting not as good when you are a new business?

Answer 5

This is because if you are a new business its much less reliable as the predictions become less reliable as you don’t have any past data to compare to

Question 6

Does the market being dynamic affect the prediction of sales?

Answer 6

Yes it makes it a lot harder to predict sales as the market is constantly changing

Question 7

Is it better to have experience when sales forecasting?

Answer 7

Its much better to have experience when doing sales forecasting because then means they can understand trends, tastes and competitors more and how it will affect their sales