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IBBusinessDPBusiness ManagementHLFlashcards4. Marketing4.3 Sales Forecasting

4.3 Sales Forecasting (DP IB Business Management)

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  • What is sales forecasting?

    Sales forecasting is predicting future revenue based on past figures.

  • In sales forecasting, what is meant by the term extrapolation ?

    Extrapolation is using historical data to identify and extend trends to predict future sales, typically using a line of best fit.

  • What is time series analysis?

    Time series analysis involves identifying underlying trends from past sales figures, considering seasonal, cyclical, and random variations.

  • True or False?

    Sales forecasts are only used to predict revenue.

    False.

    Sales forecasts are used to predict revenue, sales volumes and resource requirements.

  • What are cyclical factors in sales forecasting?

    Cyclical factors are recurring patterns in sales data that are not related to seasonal variations.

  • How can fashion or fads impact sales forecasts?

    Fashion or fads can have a short-term impact on sales, often led by celebrities' influence, requiring adjustments to sales forecasts.

  • True or False?

    Economic growth usually leads to lower sales forecasts.

    False.

    During periods of economic growth, increased consumer incomes typically lead to higher than forecast sales.

  • How might high or increasing levels of inflation affect sales forecasts?

    High or increasing levels of inflation may lead to downward revisions of sales forecasts as it reduces consumers' spending power.

  • What impact can rising interest rates have on sales forecasts?

    Rising interest rates can lead to downward adjustments in sales forecasts, especially for products often bought on credit, as borrowing becomes more expensive.

  • Define competitor actions in the context of sales forecasting.

    Competitor actions are the strategies of rival businesses that can impact sales.

  • True or False?

    Unemployment levels do not affect sales forecasts.

    False.

    Increased unemployment levels can lead to reduced spending in the economy, affecting sales forecasts, especially for lifestyle and luxury goods.

  • What is meant by experience bias?

    Experience bias is forming opinions of the future based on experiences in the past, which can affect the accuracy of sales forecasts.

  • True or False?

    Longer-term sales forecasting is generally more reliable than short-term forecasting.

    False.

    Longer-term sales forecasting is often more problematic, as it is difficult to predict factors such as changes in tastes, economic factors and competitor actions long into the future.

  • In the context of sales forecasting, what is resource planning?

    Resource planning is the use of sales forecasts to support production schedules, stock management, and determine staffing and capital equipment requirements in advance.

  • True or False?

    Reliable sales forecasts can increase the confidence of shareholders.

    True.

    Reliable sales forecasts can increase the confidence of shareholders as they improve a company's reputation and make it more attractive to potential investors

Previous:4.2 Marketing PlanningNext:4.4 Market Research

    1. Topic 1

      1.1 What is a Business?

    2. Topic 2

      1.2 Types of Business Entities

    3. Topic 3

      1.3 Business Objectives

    4. Topic 4

      1.4 Stakeholders

    5. Topic 5

      1.5 Growth & Evolution

    6. Topic 6

      1.6 Multinational Companies (MNCs)

    1. Topic 1

      2.1 Introduction to Human Resource Management

    2. Topic 2

      2.2 Organisational Structure

    3. Topic 3

      2.3 Leadership & Management

    4. Topic 4

      2.4 Motivation & Demotivation

    5. Topic 5

      2.5 Organisational (Corporate) Culture

    6. Topic 6

      2.6 Communication

    7. Topic 7

      2.7 Industrial Relations

    1. Topic 1

      3.1 Introduction to Finance

    2. Topic 2

      3.2 Sources of Finance

    3. Topic 3

      3.3 Costs & Revenues

    4. Topic 4

      3.4 Final Accounts

    5. Topic 5

      3.5 Profitability & Liquidity Ratio Analysis

    6. Topic 6

      3.6 Efficiency Ratio Analysis

    7. Topic 7

      3.7 Cash Flow

    8. Topic 8

      3.8 Investment Appraisal

    9. Topic 9

      3.9 Budgets

    1. Topic 1

      4.1 Introduction to Marketing

    2. Topic 2

      4.2 Marketing Planning

    3. Topic 3

      4.3 Sales Forecasting

    4. Topic 4

      4.4 Market Research

    5. Topic 5

      4.5 The Marketing Mix (7 P's)

    6. Topic 6

      4.6 International Marketing

    1. Topic 1

      5.1 Introduction to Operations Management

    2. Topic 2

      5.2 Operations Methods

    3. Topic 3

      5.3 Lean Production & Quality Management

    4. Topic 4

      5.4 Location

    5. Topic 5

      5.5 Break-Even Analysis

    6. Topic 6

      5.6 Production Planning

    7. Topic 7

      5.7 Crisis Management & Contingency Planning

    8. Topic 8

      5.8 Research & Development (R&D)

    9. Topic 9

      5.9 Management Information Systems

    1. Topic 1

      6.1 The Business Management Toolkit