Posted in Marketing and Strategy Terms, Total Reads: 420
Seasonality can be defined as any activity recurring over a period of time continuously.
Cyclical effects may extend to periods more than a year, whereas seasonal effects are contained with the span of one year.
The graph shows the seasonal demand of a product that dips every December.
A company that sells sweaters and woolen wear will have higher sales in winter and no sales in summer. Companies should understand the effects of seasonality to manage their sales and inventory properly.
Similarly, for an ice-cream brand, the sales would surge high during the summers but in the winters, due to low demand, seasonality would reduce the sales.