Sales forecasting Flashcards

1
Q

What is intuition

A

A gut feeling about a product used when the product has little data

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2
Q

What is brainstorming

A

Lots of people come together and give a verity of ideas on a problem shown

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3
Q

Disadvantages of delphi technique

A

1.Takes a long long time
2.Assumes people will come to agree but they may just stick with their original thoughts

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4
Q

Advantages of delphi technique

A

1.Flexible to be used in lots of different scenarios
2.Data is recorded to be used at any time
3.Provides a structure for people to make decisions

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5
Q

What is the delphi method

A

Experts answer a questionnaire independently then the results are gathered. These results are shared with everyone then they do it again and after an amount of time all experts end up coming to a agreed answer.

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6
Q

3 market data methods

A

1.Survey customers intentions - what they will do in future?
2.Direct sales information- sales staff notice change in trends of consumers
3.Test marketing- testing customers response to a product before release e.g getting a group to try new food

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7
Q

Drawbacks of time series analysis

A

1.It’s a prediction no guarantee it happens
2.Historically data is not always a good indication of future trends
3.Hard to predict future

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8
Q

Usefulness of time series analysis

A

1.Help business plan ahead
2.Financial planning
3.Hr planning , right number of employees
4.less likely of unexpected surprises
5.Production planning, right number of supply’s

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9
Q

What is correlation

A

A measure between the relationship of 2 factors plotted on a scatter graph

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10
Q

What’s the point of a 3 point moving average

A

To see the general rate of sales over time.

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11
Q

4 types of time series analysis

A

1.Seasonal analysis- see if there’s a pattern in sales and different seasons
2.Trend analysis- general trend over years
3.Cycle analysis- relationship between demand and economic cycle
4.Random factor analysis- provide exposition for unusual sales activity

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12
Q

What is time series analysis?

A

Using evidence from past sales to predict future sales patterns.

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13
Q

When to use quantitive data?

A

When there is lots of historical data available

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14
Q

2 quantitive methods of sales forecasting

A

1.Times series analysis
2.Use of market research and data

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15
Q

4 qualitative sales forecasting methods.

A

Qualative:
1.Delphi technique
2.Brainstorming
3.Intuition
4.Expert opinion

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16
Q

What is extrapolation

A

Using past business date to forecast future sales.

17
Q

Why use sales forecasting

A

To predict future sales and then can estimate supply, money, capital needed and resources needed.