MP-013 TERMS

Production costs

• Expenses directly associated with the creation of products (e.g., raw materials)

• Costs related to marketing and advertising

• Overhead costs not directly tied to production

• Employee salaries unrelated to production

Qualitative forecasting

• Sales forecasting that is based on expert opinion and personal experience

• Sales forecasting that relies on historical data and statistical methods

• Sales forecasting that uses market trends and consumer behavior analysis

• Sales forecasting that is based on random sampling and guesswork

Market segment

• A group of people who share the same characteristic(s) (e.g., age, nationality, gender)

• A marketing strategy aimed at a broad audience

• A type of product designed for a specific demographic

• A financial analysis of market trends

Intermediate-range forecasting

• Sales forecasting that predicts sales for periods of one week to three months; used for short-term planning.

• Sales forecasting that predicts sales for periods of three months to two years; used to plan quarterly or yearly budgets or to determine whether to make capital expenditures (purchases of equipment, land, etc.)

• Sales forecasting that predicts sales for periods of two to five years; used for long-term strategic planning.

• Sales forecasting that predicts sales for periods of one year to five years; used to assess market trends.

Benchmark

• A point of reference

• A type of measurement

• A statistical analysis method

• A financial report

Periodical

• A magazine or newspaper

• A type of book

• A scientific journal

• A daily news report

Inventory

• The goods a business has in stock

• The process of managing financial records

• The total amount of money a business earns

• The equipment used in production

Mass media

• Sources of information that reach large audiences; television, books, magazines, newspapers, radio, movies, and the internet

• Only refers to television and radio

• A form of social media used for personal communication

• A type of print media that includes only newspapers

Short-range forecasting

• Sales forecasting that predicts sales for periods of less than three months; used to aid in day-to-day decision-making regarding planning, scheduling, staffing, inventory, etc.

• Sales forecasting that predicts sales for periods of three to six months; primarily used for quarterly planning.

• Sales forecasting that predicts sales for periods of more than six months; focused on long-term strategic planning.

• Sales forecasting that predicts sales for periods of one year or more; used for annual budgeting and resource allocation.

Segment

• A type of marketing strategy

• One of the groups into which the total market is divided; also known as market segment

• A method of product pricing

• A promotional campaign targeting a specific audience