2. Christmas is six months away. Retailers must decide whether or not to hire extra
employees to work during the holiday season. Sales for the retail industry are expected to mirror last year’s figures (which were quite good), but, due to poor sales at the beginning of the year, the number of salespeople at Kat’s Gift Store must be reduced by 20 percent.
Change: _______________ Internal or External Increase or Decrease
Read each of the following situations to determine what change is affecting the sales

forecast of each business. The changes are:
Competitive
Distribution process
Economic
Market
Marketing strategies
Human resources
Population
Pricing
Product lines
Promotion

As sales were weak at the beginning of the year and the number of sellers at Kat's Gift Store is expected to be reduced by 20 percent, this corresponds to an internal change of reducing employees.

The situation affecting sales at Kat's Gift Store may be related to marketing strategies, as the increase in sales has been seasonal, such as during the holiday season, but sales have been weak in normal periods, where demand tends to remain stable.

Therefore, it is necessary that the company's managers monitor and review the company's marketing strategy, in order to identify the factors that have caused the reduction in sales in the company.

Reviewing the company's marketing plan can bring competitive advantages and generate value for the consumer, increasing profitability and market positioning.

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