Sales Forecasting Techniques Career This activity is important because forecasting and estimating potential sales are often key responsibilities of marketing managers. Additionally, good sales forecasts help production managers optimize production schedules. While sales forecasts are unlikely to be 100 percent accurate, sales forecasts can help firms achieve their profit objectives. The goal of this exercise is to identify the differences between the three main types of sales forecasting techniques: judgments of the decision maker, surveys of knowledgeable groups, and statistical methods. Read each sales forecasting technique, then classify it as a judgment of the decision maker, survey of knowledgeable groups, or statistical method.
1. After plotting the sales data from the last 13 years, the marketing manager noticed a linear pattern emerging. By extending the line beyond the observed period, the marketing manager was able to forecast sales for the next 3 years. (Click to select)
2. For simplicity's sake, Drake decides to estimate the number of eggs he should order for his corner store without any intervening steps. Quite quickly, he decides to order 50 dozen eggs to restock his shelves. Click to select)
3. A local restaurant is trying to determine whether it should add empanadas to its menu. Before they commit to the flaky mini pie, the restaurant sampled the empanadas to its customers and then asked customers if they would purchase the item if it was priced at $6.99 (Click to select)
4. At the beginning of the firm's fiscal year, Jose is asked to provide a sales forecast for its line of motorcycles. To begin the process, he determines the number of motorcycles sold last year and then evaluates both positive and negative factors to determine the forecast (Click to select)
5. Kate is the sales manager for a large pharmaceutical firm. Every month, she asks the field sales representatives to estimate the number of doctors and hospitals that will begin prescribing the firm's new drug next month. (Click to select) 6. To identify the trends present in 10 years of its sales data, the marketing manager employed the Box-Jenkins technique, which utilizes autoregression, moving averages, and seasonal differencing to make the data stationary and facilitate sales forecasting. (Click to select)