Sales Forecasting Techniques and Analysis

Sales Forecasting

Predicting future sales levels by volume or value.

Quantitative Forecasting

Based on historical data or quantitative research.

Qualitative Forecasting

Uses subjective judgment and intuition for predictions.

Moving Average

Smoothing technique to identify sales trends.

Extrapolation

Predicting future data based on current trends.

Time-Series Analysis

Analyzing past sales figures to identify trends.

Correlation

Relationship between two variables; can be positive or negative.

Three-Point Moving Average

Average of three consecutive data points.

Scatter Graph

Visual representation of data points on axes.

Line of Best Fit

Line that best represents data trends in a scatter graph.

Delphi Method

Qualitative forecasting using expert consensus.

Intuition

Using gut feelings for decision-making in forecasting.

Brainstorming

Group creativity technique for generating ideas.

Sales-Forecast Composite

Insights from sales representatives about market trends.

Jury of Experts

Collective judgment from experienced individuals.

Dynamic Market Nature

Market conditions that frequently change and affect forecasts.

Expertise of Forecasters

Knowledge level of individuals predicting sales.

Research Methods

Techniques used to gather data for forecasting.

Sampling Techniques

Methods for selecting data points for analysis.

Cash Flow Forecasts

Estimations of future cash inflows and outflows.

Workforce Planning

Strategic alignment of workforce with business goals.

Stock Levels

Amount of inventory available for sale.

Scatter Graphs

Visual representation of relationships between two variables.

Correlation

Identifying relationships between two variables.

Positive Correlation

Both variables increase or decrease together.

Negative Correlation

One variable increases while the other decreases.

Zero Correlation

No relationship exists between the variables.

Correlation Spectrum

Range from -1 (strong negative) to +1 (strong positive).

Extrapolation

Extending trends into the future using past data.

Market Stability

Condition where market trends are predictable.

Sales Forecasting

Predicting future sales based on various techniques.

Quantitative Forecasting

Using numerical data for sales predictions.

Qualitative Forecasting

Using non-numerical data like intuition for predictions.

Intuition in Forecasting

Making predictions based on gut feelings.

Brainstorming

Collecting ideas from multiple contributors.

Delphi Technique

Gathering independent expert opinions for forecasting.

PESTLE Analysis

Framework for analyzing external factors affecting business.

Limitations of Forecasting

Challenges in predicting future sales accurately.

External Influences

Factors outside a business affecting sales forecasts.

Market Research

Gathering data to understand market conditions.

Consumer Tastes

Preferences that can change market dynamics.

Unexpected Events

Unforeseen occurrences impacting sales predictions.

Sales Volume

Total quantity of products sold in a period.

Advertising Expenditure

Money spent on promoting products or services.

Facilitator

Person controlling the sales forecasting process.

Questionnaire

Detailed survey sent to contributors for opinions.

Consensus

General agreement reached among experts.

Sales Forecasting

Projection of achievable sales revenue.

Qualitative Sales Forecasting

Forecasting based on expert opinions and insights.

Advantages of Qualitative Forecasting

Includes expert views and diverse contributor range.

Disadvantages of Qualitative Forecasting

May overlook data and external trends.

Delphi Method

Structured technique for gathering expert opinions.

Moving Averages

Sales measured over time to analyze trends.

Seasonal Analysis

Examines sales patterns during specific periods.

Trend Analysis

Identifies and projects future trends from past data.

Extrapolation

Predicts future trends based on historical data.

Time-Series Analysis

Analyzes data points collected over time.

Cyclical Analysis

Variation in sales due to economic cycles.

Scatter Graph

Visual representation of data points for analysis.

Line of Best Fit

Line that best represents data trends in graphs.

Three-Year Moving Average

Average sales calculated over three consecutive years.

Sales Revenue

Total income from sales over a period.

Safety Stock Levels

Extra inventory to prevent stockouts during demand spikes.

Sales Budget

Financial plan outlining expected sales revenue.

Correlation

Relationship between two variables, can be positive or negative.

Expert Opinions

Insights provided by knowledgeable individuals in a field.

Market Surveys

Research tools to gather consumer preferences and trends.

Line of Best Fit

A straight line representing data trends.

Sales Revenue

Total income from sales, measured in £000s.

Growth Trend

Long-term increase in sales over time.

Recovery

Period of economic improvement after recession.

Recession

Economic decline characterized by falling GDP.

Trough

Lowest point in an economic cycle.

Random Factor Analysis

Explains unusual sales figures due to external factors.

Sales Forecasting

Predicting future sales based on data.

Qualitative Sales Forecasting

Forecasting based on non-numerical factors.

Economic Factors

Influences like business cycle and exchange rates.

Consumer Factors

Changing tastes affecting sales predictions.

Competition Factors

Strategies of competitors impacting sales forecasts.

Brainstorming

Collaborative idea generation for future predictions.

Delphi Technique

Expert opinion method for forecasting outcomes.

Production Planning

Organizing resources for efficient product manufacturing.

Financial Planning

Managing finances to ensure business sustainability.

Human Resource Planning

Aligning workforce needs with business objectives.

Market Knowledge

Understanding market trends and consumer behavior.

Expert Opinion

Insights from knowledgeable individuals for predictions.

Sales Stability

Consistent sales figures without major fluctuations.

Investment Decisions

Choices made regarding resource allocation for growth.

Qualitative Factors

Non-numerical influences on business decisions.

Quantitative Factors

Numerical data used in decision-making processes.

Quantitative Factors

Elements influencing numerical data analysis.

Disadvantages of Quantitative Methods

Challenges faced in quantitative research approaches.

Expert Panels

Groups of specialists providing consensus opinions.

Market Research Reliability

Trustworthiness of data from market analysis.

Investment Appraisal

Assessment of potential investment returns.

Intuition in Business

Using gut feelings for decision-making.

Economic Impact on Predictions

Economy influences accuracy of quantitative forecasts.

Moving Average

Average calculated over specific time intervals.

3-Point Moving Average

Average of three consecutive data points.

Calculating Simple Average

Total figures divided by number of items.