Chapter 17 Time Series Analysis
Measurement Need
Marketers must regularly make decisions about future marketing activities, including alignment with overall organization strategy, marketing program investments and budgets, pricing, customer development, sales projections, and production forecasts. Historical sales performance helps reveal trends that, depending on anticipated business conditions, can directly impact the marketing plan.
Solutioni
Time series analysis is a useful method for using past quantitative data to predict future performance. Three popular methods are:
–naïve forecast;
–averaging forecasts; and
–exponential smoothing.
Naïve forecast
The naïve forecast assumes the next period’s demand will match the previous period. ...
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