Answer in Management for Prince #160906
1.Explain factors affecting sales forecasting?( please give at least 10 factors in detail)
2.Describe marketing and sales forecadting? (please answer in 150 to 200 words )
1.Factors affecting sales forecasting
Sales forecasting assists in predicting the sales of a business with relative accuracy. They include factors such as the past economic performance of the business where historical data across all sectors and levels is considered in making a prediction. Current global conditions also affect sales forecasting since we are in a globalized world. The rate of inflation and current industry solutions affect forecasting as they dictate the environment that the business operates. Internal changes in an organization affect the decisions of investors hence should be considered during forecasting. Additionally, seasonal demands and marketing efforts of an organization need to be considered. The other factors include a budget allocation for particular products or services, political conditions, and the level of customer satisfaction.
2. Marketing and Sales Forecasting
Marketing is the process by which an organization ensures that potential customers or clients are made aware of their services and products. Marketing involves selling, promoting, researching, and distributing services or products. The main concern of this discipline is the study of consumer and market behaviors.
Sales forecasting is a procedure utilized by organizations in predicting sales of the future. When sales forecasts are accurate, businesses are able to make decisions that are informed and predict long-term and short-term performance. Some of the basis of forecasts include economic trends, rate of inflation, political factors, and the organizations marketing efforts.
Generally, it is easier for companies that are established to sales forecast more accurately when compared to less established companies. Older companies have the advantage of having past years’ business data. For new companies, they have to rely on information that is less verified, like competitive intelligence and market research to sales forecast their business future.
