6.4.1
Sales Forecasts
Sales Forecasts
Sales Forecasts
Sales forecasts are used to predict the level of future sales. This helps a business make decisions and anticipate performance in the short and long term.


Consumer trends
Consumer trends
- Consumer trends influence sales forecasts.
- Demand for products will be heavily influenced by consumer trends.
- If demand is affected, a business' market share may change as well.


Economic variables
Economic variables
- Economic variables influence sales forecasts.
- This is because demand for a product depends upon variables such as interest rates, indirect taxes, and exchange rates.
- An economy's overall condition (i.e. in a period of boom or bust) will influence the total level of consumption in the economy.


Competitor actions
Competitor actions
- Sometimes sales forecasts are off-kilter because they have not anticipated the actions of competitors.
- Generally, this is why sales forecasts are too high.


The limits of sales forecasting
The limits of sales forecasting
- Sales forecasting poses difficulties:
- Start-ups have no existing information to base their forecasts off.
- Forecasts depend upon the elasticity of demand.
- Forecasts cannot anticipate new entrants in the market and the influence this will have.
- Forecasting could become political as managers face shareholder pressure. This means there may be a large discrepancy between the forecast and the reality.
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
Jump to other topics
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
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