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Forecasting approaches

Need help understanding the two basic approaches to forecasting market potential and sales. The two approaches are (1) extending past behavior and (2) predicting future behavior.

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Extending past behavior:
In terms of extending past behavior, trend analysis is a useful tool in analyzing historical behavior or historical sales trends to forecast market potential and sales in the near future. Sales revenues from the same month in the previous year make a good base for predicting sales for that month in the succeeding year. For example, if the trend forecasters in the economy and the industry predict a general growth of ...

Solution Summary

Forecasting approaches for market potential and sales.