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9. Sales forecasting is based on a variety of estimates, depending on the product or service concerned and the market involved.

Below is part of a report by Michelle Cardot, the Marketing Manager of Fastrail Ltd. Put the five parts of the report in the correct order.

Sales forecasting

1.

The sales forecaster interviews sales staff, sales managers and senior management. Talking with experts and analyzing figures from previous years helps to show trends, the relationship between price and demand, and any seasonal variations. The forecaster also considers the effects of advertising, or changes in the market. For example, if new competition arrives or old competitors disappear.

2.

Sales forecasting

Sales forecasting is an attempt to estimate the level of regular business. It includes existing contrasts, the typical volume of sales to regular customers, typical volume of non-regular business and an estimate of the volume of new business.

3.

Sales volume will be affected by the effectiveness of advertising and other promotional activities, the quality of the sales force, past sales volume and any seasonal influences.

4.

Pricing policy is affected by market conditions, competition, economic climate, industrial conditions and organizational cost structure.

5.

Factors affecting sales forecasting include pricing policy and sales volume.

10. Forecasts

Choose from the words in the box to complete the sentences. The first has been done for you.

net

sales

market

overheads

loss

expenditure

cash-flow

gross

capital

profit

1.

The forecast which predicts how much money will be gained by a business is called the profit forecast.

2.

The forecast which predicts how much money will be lost by a business is called the __________ forecast.

3.

The forecast which predicts how much money will be received or spent by a business is the __________ forecast.

4.

The forecast which predicts where most sales will be made, and what their value will be, is the __________ forecast.

5.

The forecast which predicts how much the company will sell is the __________ forecast.

6.

The forecast which predicts how much money will be spent by the company is the forecast of __________ .

7.

The forecast which predicts how much money is needed to start up a business or to increase its wealth is the __________ forecast.

8.

The forecast which predicts how much money the company will earn before tax is paid is the __________ profit forecast.

9.

The forecast which predicts how much money the company will earn after tax is paid is the __________ profit forecast.

10.

The forecast which predicts how much money the company will have to spend on salaries, heating and lighting, rent, etc., is the forecast of __________ .