Sales Forecasting

    Cards (25)

    • What is the purpose of sales forecasting techniques?
      To predict future demand for products
    • How do businesses use sales forecasting?
      To anticipate consumer behavior in various scenarios
    • What can businesses predict once they have accurate sales estimates?
      Human Resource Management and finance needs, production levels
    • What are the two main categories of sales forecasting methods?
      • Quantitative techniques
      • Qualitative techniques
    • When are quantitative forecasting methods used?
      When historical data is available
    • What is extrapolation in sales forecasting?
      Using historical trends to predict future sales
    • What are some examples of qualitative forecasting methods?
      The Delphi technique, brainstorming, intuition
    • Why is sales forecasting considered difficult?
      Due to unpredictable external factors
    • What external factors should be considered in sales forecasting?
      • Economic factors (e.g., inflation, unemployment)
      • Consumer factors (e.g., changing tastes)
      • Competition factors (e.g., competitor actions)
    • How does inflation affect sales forecasts?
      It can lower the sales forecast
    • What does seasonal analysis measure in time-series analysis?
      Sales on a monthly or weekly basis
    • What is the focus of trend analysis?
      Long-term data trends in sales
    • What does cycle analysis examine?
      The relationship between demand and economic activity
    • What does random factor analysis attempt to explain?
      Unusual or extreme sales figures
    • What indicates a strong positive correlation in a scatter graph?
      As one variable increases, so does the other
    • What is a negative correlation?
      One variable increases while the other decreases
    • What is brainstorming used for in qualitative forecasting?
      Generating new ideas and predicting outcomes
    • What does correlation measure in sales forecasting?
      The relationship between two variables
    • What is the focus of a brainstorming session?
      The Problem Statement
    • How many people are most effective in a brainstorming session?
      Groups of 6-12 people
    • What is intuition in forecasting?
      Using gut feelings to predict outcomes
    • Who is an example of a successful entrepreneur using intuition?
      Steve Jobs
    • What is expert opinion in forecasting?
      Insights from specialists in various fields
    • Why are panels of experts more reliable than individual experts?
      They provide a broader range of insights
    • What are the advantages and disadvantages of the Delphi method?
      Advantages:
      • Flexible for various situations
      • Structured decision-making process
      • Better quality responses

      Disadvantages:
      • Time-consuming to coordinate
      • Assumes consensus among experts
      • Potential bias from monetary payments