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