1. Sales forecasting

2. Syllabus Candidates should be able to: explain the purpose of sales forecasts assess factors affecting sales forecasts: consumer trends, economic variables and actions of competitors evaluate the difficulties of sales forecasting

3. What is a sales forecast?

4. What is the purpose of sales forecasts?

5. What factors affect sales forecasts?

6. Examples: economic growth & exchange rates First half of 2014, UK’s economy grew at 3%, sales of Rolls-Royce cars rose by 33%. Assuming incomes rose by the same % as the economy. What is the income elasticity of demand? If the value of the £ fell what would happen to imports? Who would benefit?

7. Examples: actions of competitors 2010 – 2013 Samsung’s Galaxy phones outsold Apple. What happened next?

8. What are the difficulties of sales forecasting

9. Extrapolation Forecasting based on previous data is known as _______________ What is the drawback with extrapolation?