Theme 2 - 2.1 Sales forecasting

Question 1

What is a sales forecast ?

Answer 1

A projection of achievable sale revenue based on data analysis trends, economic variables and competitor actions.

Question 2

What are consumer trends ?

Answer 2

Behaviours that consumers have towards products and services they buy/use.

Question 3

What are economic variables ?

Answer 3

These are key indicators of the economy such as inflation.

Question 4

What affects a sales forecast ?

Answer 4

• Economic variables.
• Consumer trends.
• Competitor actions.

Question 5

What are the disadvantages to a sales forecast ?

Answer 5

• historical data may be inaccurate.
• Fluctuations in demand as market is constantly changing.

Question 6

What are the advantages to a sales forecast ?

Answer 6

• Allows a business to set a budget.