Sales and Market Forecasting for Entrepreneurs

Chapter 7

Strategic Interactive Model

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So far, we have assumed that a sales forecast is a simple guess at future sales. We haven’t looked at the impact of our own business decisions, much less those of our competitors. Sales will presumably be higher if we advertise more, higher if we cut our prices (unit sales, at least—although that’s a dangerous assumption) and lower if we spend less on Web search terms or advertising, or increase prices (although, again, a dangerous assumption).

Our version of an interactive model is relatively simple, used to make a point. They can be very complicated. Consider the fact that when ...