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McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Analysis of Sales Volume It is only through evaluation.

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Presentation on theme: "McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Analysis of Sales Volume It is only through evaluation."— Presentation transcript:

1 McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Analysis of Sales Volume It is only through evaluation that value exists: and without evaluation the nut of existence would be hollow. Friedrich Nietzsche

2 14-2 Interrelationship of Planning, Implementation, and Evaluation Planning Set goals Determine strategies & tactics Implementation Organize Staff Operate Evaluation Compare goals and results Explain variances

3 14-3 The Evaluation Process (Fig 14-2) What happened Why it happened What to do about it To Find Out:

4 Principle  80 percent of the orders, customer, territories, or products contributes only 20 percent of the sales volume or profit.  Epitomizes misplacement of marketing efforts

5 14-5 Total Sales Figures May Hide Significant Problems (Fig. 14-3) Sales Volume Time (years) Total Territory A

6 14-6 Bases for Analyzing Sales Volume  Total Sales Volume  Sales by Territories  Sales by Products  Sales by Customer Classifications

7 14-7 Information Used In Analysis of Total Sales Volume, Colorado Ski Company (Fig. 14-4)

8 14-8 Analysis of Territorial Sales Volume in Five-Territory Western Division, Colorado Ski Company (Fig. 14-5)

9 14-9 Analysis of Product Sales Performance in Two Territories, Colorado Ski Company (Fig. 14-6)

10 14-10 P1P2P3P4 C1 C2 Cn... Q1 Q2 Q3 Q4 Customers Products Timing (in Quarters) Customer Probability Cube (Fig. 14-7)  Shows salespeople what to sell, when and to whom…

11 14-11 Sales Force Automation  Typically a single part of an overall CRM (Customer Relationship Management) system  Analyzes information from a variety of the firm’s different business functions (e.g. sales, marketing, accounting, purchasing, manufacturing).  Salespeople are sometimes resistant to SFA initiatives.


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