Difficulties of Sales Forecasting
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King's College
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Summary
This document explores the challenges of sales forecasting. It examines the impact of dynamic markets, consumer trends, and short-term thinking on a company's ability to create accurate sales forecasts. The document also touches on research into consumer trends.
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Difficulties of sales forecasting Research: Consumer trends Just because a sales forecast has been written by a business - there are no guarantees that sales will meet these levels This could be down to any number of uncertain factors e.g. impact of terrorism on tourism in some coun...
Difficulties of sales forecasting Research: Consumer trends Just because a sales forecast has been written by a business - there are no guarantees that sales will meet these levels This could be down to any number of uncertain factors e.g. impact of terrorism on tourism in some countries Carry out some research, which countries currently are suffering tourism losses due to terrorism? Difficulties – dynamic markets In April of 2017 the fidget spinner was the must-have toy, by May 2017 most schools had banned them and sales were in decline The craze or fad for fidget spinners had died - meanwhile toy shops are packed to the rafters with the toy they can no longer sell Difficulties – short term thinking A sales forecast is useful for a business which can produce and sell products or services in a one year period For some businesses e.g. ship building company or a hotel, a one year forecast will not be useful or appropriate for multi- billion dollar contracts, over a longer time period
