Sales Forecasting (Edexcel A-Level Business): Flashcards
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Sales forecasting definition
Sales forecasting definition
Predicting future sales revenue for a business
Time series analysis
Time series analysis
Examining historical data chronologically to identify patterns
4 components of time series data
4 components of time series data
Trend, seasonal, cyclical, random fluctuations
Seasonal variations
Seasonal variations
Predictable fluctuations in sales throughout the year
Cyclical fluctuations
Cyclical fluctuations
Highs and lows over years, linked to economic cycle
GDP stands for
GDP stands for
Gross Domestic Product - total output of economy
Effect of high interest rates on sales
Effect of high interest rates on sales
Reduces demand as borrowing becomes more expensive
Inferior goods in recession
Inferior goods in recession
Products with higher demand when incomes fall (e.g. Aldi, Lidl)
Extrapolation
Extrapolation
Predicting future trends based on past data
Key forecasting difficulty
Key forecasting difficulty
Volatile consumer tastes can change rapidly and unpredictably