Scholarly record

THE IMPORTANCE OF FORECASTING IN BUSINESS DECISION-MAKING PROCESS - ROMANIAN MASS MEDIA INDUSTRY CASE

Marinescu F. M.

Abstract

Accurate data and information about competition, about market trends and about consumersВ’ needs and habits are essentials for any business company based on profit and efficiency objectives. Forecasting is a decision-making tool used to assess the economic trends and to allow business owners to benefit or to counteract them, in essence, to prepare business owners and management to act instead of react to conditions. This paper aim to reveal the importance of forecasting in decision-making process - with emphasis on Romanian mass media industry. Also, it aims to point out the potential and functionality of the forecasting as decision-making tool. The study uses quantitative method based on time series analysis and projection for forecasting advertising, circulation and online publishing revenues. The mass media industry has been one of the most sensitive businesses to economic crisis and to technological changes. In recent years, definitive changes occurred in consumersВ’ habits with effect in mass media companiesВ’ revenues. The consumersВ’ access to free content of any type, from written information and news to video content, meant a significant decline of the media audience which negatively impacted paid content revenues. Advertising allocated budgets are affected not only by the decline of the media audience, but also by the new non-media players emerged in direct competition, such as e-commerce companies and non-journalists content providers.

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