Sales forecasting and Branding

Question 1

what is sales forecasting?

Answer 1

a quantitative management technique used to predict a firm’s level of sales over a given time period. It helps them identify problems and opportunities in advance.

Question 2

extrapolation

Answer 2

forecasting technique that identifies the
trend by using past data and extending this trend to predict future sales.

Question 3

market research

Answer 3

the process of gathering, analysing and reporting data related to a particular market. It helps businesses make good marketing decisions.

Question 4

times series analysis

Answer 4

technique that attempts to predict sales levels by identifying the underlying trend from a sequence of actual sales figures. The three main elements of time series analysis is cyclical random or seasonal sales variations

Question 5

benefits of sales forecasting

Answer 5

1. Improved working capital and cash flow
2. Improved stock control
3. Improved productive efficiency
4. Helps to secure external sources of finance
5. Improved budgeting

Question 6

limitations of sales forecasting

Answer 6

1. Limited information
2. Inaccuracy of predictions
3. Garbage in garbage out (GIGO)
4. External influences

Question 7

branding

Answer 7

A brand refers to a name or trademark that is identifiable with a business or product. It is a key product differentiator and an intangible asset.

Question 8

aspects of branding

Answer 8

1. Brand awareness
2. Brand development
3. Brand loyalty
4. Brand value

Question 9

brand awareness

Answer 9

measures the extent to which potential customers, or the public, recognises a
particular brand.

Question 10

brand development

Answer 10

refers to marketing process of improving and enlarging a brand name. This can be done through advertisements, offering free
samples, practicing CSR.

Question 11

brand loyalty

Answer 11

when customers become devoted to a brand and will choose it over competitors. They perceive more value from the brand and will therefore pay a higher price for it.

Question 12

brand value

Answer 12

this is what the brand is worth in terms of reputation, potential sales, and market value. This allows them to use premium pricing and gain more market share

Question 13

importance of branding

Answer 13

1. Acting as a legal instrument
2. Risk reduction
3. Image enhancement
4. Earning higher revenues
5. Premium price setting
   ability
6. Recognition and loyalty
7. Higher market share