Sales forecast

Subdecks (2)

What is the definition of sales forecasting?
Predicting future sales using previous sales or research
Give 5 purposes of sales forecasts?
Avoid cash flow problems
Frees up management time
Production capacity
Employ more workers
Start promotional activity
Give 3 factors that affects sales forecasts?
Consumer trends
Economic variables
Action of competitors
How do consumer trends affect sales forecasts?
documents can help a business to identify a upcoming trend and research popular products
How do economic variables affect sales forecasts?
It can affect how a business plans its sales like interest rates, inflation rates and unemployment rate
How does action of competitors affect sales forecasts?
If a business is facing decline due to competitors superior product then they may try to produce or sell less of those products
Give 2 ways how you can analyse a sales forecast?
Time series data
Trends
What is time series data?
The sales revenue in time order to enable predictions based upon past data
What is meant by trend?
A general direction in what is popular