2.2.1 Sales Forecasting

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    Created by
    Thomas Edwards

    Cards (8)

    • What is a sales forecast
      A prediction of the number of sales a business will achieve
    • What is the purpose of a sales forecast
      Planning and budgeting
      Resource allocation
      Performance allocation
      Decision making
    • Examples of factors that could impact sales
      Inflation
      Change in consumer income
      Seasonality
      Sponsorship
      Customer loyalty
      Demographics
    • Benefits of a financial forecast
      Helps to plan and make decisions
      Budgeting
      Risk management
      Performance monitoring
      Helps identify trends
    • Limitations of the financial forecast
      Time consuming
      Prediction
      Accuracy depends on data quality
    • Another name for financial forecast
      Time series analysis
    • Key factors that impact on sales forecasts 

      Consumer trends
      Seasonal variations
      Fashion
      Long term trends
      Economic growth
      Interest rates
      Inflation
      Unemployment
      Exchange rates
    • Purposes of a sale forecasts
      Financial planning
      Resource Allocation
      Strategic decision making
      Performance evaluation
      Risk management