4.3 Sales Forecasting (HL)

Sales Forecasting

Quantitative technique used to predict a firm’s level of sales revenue over a given time period

Extrapolation

Estimating by assuming that existing trends will continue/remain applicable

Seasonal Fluctuations

Changes in demand and supply because of the varying seasons in the year

Cyclical Fluctuations

Variations tied to the business cycle in an economy

Random Fluctuations

Irregular fluctuations in sales/revenues, caused by unexpected factors

Moving average

Sales forecasting method that identifies and emphasises the direction of a trend

Porter’s Generic Strategies

How a company pursues competitive advantage across its chosen market scope

Quality

The satisfaction consumers have for a product in relation to price

Cost Focus

Firm becomes low-cost producer of niched market

Cost Leadership

Firm becomes low-cost producer of industry

Differentiation

Firm makes their products different or better than their competitors

Differentiation Focus

Firm makes their products specialised/differentiated in a niched market