Sales Forecasts Flashcards
What is a Sales Forecast?
Sales Forecasting is about predicting future sales volume and sales revenue based on past sales data and market research.
What does a Sale Forecast allows business to decide on?
Finance - needs to know if the business needs more finance to prevent running out of cash.
Marketing - if sales decline, they make decide to launch promotional campaigns to increase sales.
Resources - businesses need to make sure they have the raw materials for resources to meet demand.
Factors that affect Sales Forecasting:
Consumer Trends - can be very uncertain
Economic variables - factors like interest rates, inflation affect how much money customers have so affects how many products they buy.
Actions of Competitors - competitors could decrease their prices.
