Asked by Charlotte George on Jun 14, 2024
Verified
William, owner of a small hardware store, likes to forecast sales to better prepare for seasonal fluctuations. He identifies as many target markets as possible and predicts the sales for each based on one-day sales at different times of the year. He then combines the predictions for the various segments to create a total sales forecast. Which sales forecasting method is William using?
A) build-up method
B) break-down method
C) qualitative method
D) quantitative method
Sales Forecast
An estimate of the amount of goods or services a company expects to sell over a certain period.
Target Markets
Specific groups of consumers identified as the intended recipients of a marketing strategy or campaign.
Build-up Method
A financial analysis tool used to estimate the value of a business by adding together its individual components' values.
- Recognize different sales forecasting methods and their applications.
Verified Answer
MJ
Marcia JensenJun 19, 2024
Final Answer :
A
Explanation :
William is using the build-up method by identifying various target markets and predicting sales for each, then combining these predictions to create a total sales forecast. This method involves building up the total sales forecast from the sum of its parts.
Learning Objectives
- Recognize different sales forecasting methods and their applications.
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