Question

1. Explain why sales analysis is an important component of a successful sales strategy
2. Explain the importance of accurate sales forecasting to an organization

Answer 1

Sales analysis determines about the sales of products, the reasons for its decline , what type of goods is sold and what is not sold. Knowing all these details many decisions on sales strategies can be taken. Sales analysis can determine

1. The inventory of the products.

2. Sales strategies for the upcoming period.

3. To know if the company is moving towards its goal.

4. To increase or to maintain the same level of manufacturing products

5. Effectiveness of sales targets.

Accurate sales forecasting

Sales forecasting gives an outline or indication of how a product would be sold in a certain period of time . What would be the percentage of sales can be estimated. Accurate sales forecasting is needed for a business to decide the following

1. To produce the required quantity in advance.

2. To buy and stock the required raw materials . To arrange the needed labour and machinery.

3. To decide the future target of the sales department

4. Financial needs can be decided.

5. It decides on policy updates in the organization.

6. Expansion of business can be decided on accurate sales forecasting.