As the chief marketing officer for one of the most successful candy manufacturers in the country, you know how important Valentine's Day sales are to your organization. You are somewhat concerned about next year's sales, however, because one of your major competitors launched a new candy last year that's been tremendously popular, and you suspect they're going to roll out a bite-size version just in time for this candy lover's holiday. Is trend analysis still a good technique for you to use in forecasting sales for next year?
A) Yes, because at this point there's no reason to assume that next year's sales will be affected by the competition.
B) Yes, but you should be prepared for your forecast to be inaccurate because a major change in the marketplace could occur.
C) No, because it's a given that your competitor is going to take a huge bite out of your sales, making it impossible to accurately forecast using trend analysis.
D) No, because this has always been a deeply flawed technique that produces inaccurate results.

Question

Quizplus · Accepted Answer

Trend analysis can still be a useful tool in forecasting future sales, but it's important to be aware that significant market changes, such as a competitor launching a popular new product, could impact the accuracy of these forecasts.

As the Chief Marketing Officer for One of the Most