2.2.1 sales forecasting

    Cards (8)

    • what is a sales forecast?

      predicting future sales
    • what is a sales forecast used to inform businesses for?

      is used to inform business decisions and ensure they have enough cash available
    • business decisions: finance
      -make sure salaries are paid
      -set budget for other departments
    • business decisions: marketing
      -advertisements=decide what,how,when to advertise
    • business decisions: operations
      -decide on the level of stock for product needed
      -negotiating with the suppliers and ensuring right amount is available
    • business decisions: human resources
      -decide numbers of staff
    • factors affecting sales forecast
      1. consumer trends-demand in markets changing as consumer tastes and buying habits change
      2. economic variables-interest rates ,inflation and exchange rates
      3. actions of competitors- eg a competitor launching a new product, promotional campaign or price reduction could reduce sales of your business
    • difficulties of sales forecasting
      1. dynamic market -rapid changes in the market
      2. past performance is no guarantee of future performance - just because sales have been increasing in the past, does not mean that sales with increase in the future
    See similar decks