sales for

Benchmark

A point of reference

Bias

Prejudice

Budget

An estimate of income and expenses for a particular period of time

Business plan

A statement of a business’s goals and an outline of its strategies to reach those goals

Capital expenditure

A one-time purchase a business makes (e.g., land, building, equipment)

External information

Facts that come from sources outside the business (e.g., government, media)

Intermediate-range forecasting

Sales forecasting that predicts sales for periods of three months to two years; used to plan quarterly or yearly budgets or to determine whether to make capital expenditures (purchases of equipment, land, etc.)

Internal information

Facts that come from sources inside the business (e.g., accounting records, financial statements)

Inventory

The goods a business has in stock

Long-range forecasting

Sales forecasting that predicts sales for periods of more than two years; used when making strategic plans to develop new products, enter new markets, build new facilities, etc.

Market conditions

Features of the current marketplace (e.g., interest rates, level of competition, employment rates)

Market segment

A group of people who share the same characteristic(s) (e.g., age, nationality, gender)

Mass media

Sources of information that reach large audiences; television, books, magazines, newspapers, radio, movies, and the internet

Objective

Neutral; unbiased

Operating costs

The ongoing, day-to-day expenses of running a business that are not directly related to production

Periodical

A magazine or newspaper

Product life cycle

The stages through which goods and services move from the time they are introduced on the market until they are taken off the market

Production costs

Expenses directly associated with the creation of products (e.g., raw materials)

Qualitative forecasting

Sales forecasting that is based on expert opinion and personal experience

Quantitative forecasting

Sales forecasting that is based on the analysis of hard facts or numerical data

Sales forecast

A prediction of future sales over a specific period of time

Sales quotas

Specific selling goals set for members of the sales force

Segment

One of the groups into which the total market is divided; also known as market segment

Short-range forecasting

Sales forecasting that predicts sales for periods of less than three months; used to aid in day-to-day decision-making regarding planning, scheduling, staffing, inventory, etc.

Strategic plan

A long-term plan