- Created by: BakingQueen
- Created on: 24-01-19 10:29
What is Sales Forecasting?
The art of predicting future demand by anticipating future trends.
- Seasonal variation
- No suprises
- Inaccurate data
- Past isn't always a guide
- Peer pressure
Extends past evidence into the future.
Predict sales and change prediction depending on the country.
Asks the people closest to the product.
Tests consumer responses pre-release.
Changes in the economy and markets that indicate future chnages in a firms' market.
Uses past sales to predict future sales.
Not useful for long term predictions.
Cheap but requires experience.
Gives specialised insight but can be bias.
Encourages creative thinking but requires a variety of people and is often subjective.
Delphi - How does it work?
1. Panel answers questionnaire.
2. Second questionnaire is created based on the results of the first.
3. Panel answers second questionaire.
Delphi - Advantages
- Expert consensus
- Flexible use
- Not rushed
- Structured group
- Creates a record
Delphi - Disadvantages
- Time consuming
- Assumes experts are willing to come to a consensus
- Bribes would cause bias