Sales Potential and Sales Forecasting

Sales potentials, as defined earlier, are quantitative estimates of the max­imum possible sales opportunities present in particular market segments open to a specified company selling a good or service during a stated future period. They are derived from market potentials after analyses of historical market share relationships and adjustments for changes in com­panies’ and

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Sales Forecasting Methods

There are two steps in this method: (1) high-ranking executives estimate probable sales, and (2) an average estimate is calculated. The assumption is that the executives are well informed about the industry outlook and the company’s market position, capabilities, and marketing program. All should support their estimates with factual material and explain their rationales.

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Converting Industry Forecast to Company Sales Forecast

Many companies forecast both their own sales and sales of the industry. Of those using multimethod forecasting procedures, nearly all—at one or more stages—provide for the making of an industry sales forecast. In fact, of the six sales forecasting methods discussed in this chapter, only in two— the poll of sales force opinion and

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Derivation of A Sales Volume Objective

A sales volume objective for the coming operating period is the hoped-for outcome of a company’s short-range sales forecasting procedure. A sales forecast (1) contains an estimate of sales tied to a proposed marketing plan or program and (2) assumes a particular set of economic and other forces outside the unit for which the

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Evaluation of Sales Forecasts

Before submitting forecasts to higher management, sales executives eval­uate them carefully, regardless of the extent of their personal involvement in the preparation. Every forecast contains elements of uncertainty. All are based on assumptions. So a first step in evaluating a sales forecast is to examine the assumptions (including any hidden ones) on which it

Product Policies – What to Sell

The products a company sells determine its basic nature. As its organiz­ers visualize opportunities to make and/or market certain products, the company comes into existence. As it grows, management makes key deci­sions on products—whether to drop old ones, whether to add new ones, whether to expand the product line or add new lines—and on

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Distribution Policies – Who to Sell

Distribution policies are important determinants of the functions of the sales department. The choice of a particular marketing channel, or chan­nels, sets the pattern for sales force operations, both geographically and as to the customers from whom sales personnel solicit orders. The decision on the number of outlets at each distribution level affects the

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Pricing Policies

The sales executive’s role in formulating pricing policies is advisory, but all sales executives are responsible for implementing pricing policies. Field sales personnel are the company employees whose jobs consist most directly of persuading buyers to accept the products at the prices asked. Field sales personnel do the actual implementing of pricing policies, but

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Competitive Settings and Personal-Selling Strategy

Individual companies operate in different competitive settings. Industries dif­fer as to the maturity level and the number of competitors. These differences result in different competitive settings. Economists identify four basic kinds: [1] pure competition, (2) monopolistic competition, (3) oligopolistic com­petition, and (4) no direct competition. Assuming different levels of impor­tance in each competitive setting

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Personal-Selling Objectives and Personal-Selling Strategy

The qualitative personal-selling objectives vary with the kind of competitive setting. These objectives concern the nature of the contribution management expects personal selling to make in achieving long-term company objectives. These objectives influence both the nature of the sales job (that is, the kind of sales personnel needed) and the size of the sales

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Sales-Related Marketing Policies and Personal-Selling Strategy

Sales-related marketing policies are the guidelines within which the company seeks to reach both qualitative and quantitative personal-selling objectives. They provide guidance on what to sell (product policies) and to whom to sell (distribution policies). Decisions on what to sell and to whom to sell shape the fundamental nature of a company and are

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Determining the Kind of Sales Personnel

One key decision on personal-selling strategy is that on the kind of sales personnel. Making this decision requires consideration of qualitative per­sonal-selling objectives—what contributions toward the company’s long­term overall objectives should be expected from those performing selling jobs? What should be the duties and responsibilities of these individuals? How should their job performance be

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Determining the Size of the Sales Force

Management makes its second key decision on personal-selling strat­egy when it decides the size of the sales force. Having determined the kind of salesperson that best fits the company’s needs, management now determines how many are required to meet the sales volume and profit objectives. If the company has too few salespersons, opportunities for

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Individualizing Selling Strategies to Customers Conclusion

The acid test of the appropriateness of personal-selling strategy comes when particular salespeople interact with particular customers. From the composite of all such interactions evolves the company’s achievement of its personal­selling objectives. Management makes its first key decision on personal­selling strategy when it determines the kind of salesperson needed. It makes its second key

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Aurore Cosmetics: Customer faith and business restoration

Mayank Chopra is a new sales representative for Aurore Cosmetics (Aurore). Besides his other responsibilities, Mayank has a very important task at hand. A year ago, his company lost a prime customer and major retailer, Jabby, following an issue with a former sales representative. It is important for him to get Jabby back on

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Sales and Marketing Executives of Greater Boston, Inc.

The Executive Committee of Sales and Marketing Executives of Greater Boston, Inc., was considering a proposal under which students from sev­eral area colleges would each spend a day with SME-member company sales personnel to gain better insight into the world of selling. SME-Boston was a local chapter of SME-International, a worldwide association with about

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Phillips Company: Manufacturer of Steam Power Plants – The Role of the Sales Force in the Company Image

Sam McDonald, Vice-President of Sales of the Phillips Company, was con­cerned with the potential role of his sales force in correcting his company’s image in the electric utility industry. The Phillips Company, one of the lead­ing manufacturers of steam power plants in the United States, was located in Philadelphia. The company was started by

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Plastics Industries, Inc.: Manufacturer of Plastic Pipe – The Role of Personal Selling in Creating a Market

Management of Plastics Industries, Inc., was faced with the problem of promoting a new product to the market. The company had been organized in Beaumont, Texas, to manufacture pipe. It was founded by a group of wealthy individuals from the community, and total capitalization had been set with the expectation of four years of

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United Airflow, Inc.: Manufacturer of Household Appliances – Salesperson’s Job

United Airflow, Inc., was a manufacturer of air conditioners, dehumidifiers, humidifiers, vaporizers, and a variety of other small household appliances. The United sales force consisted of 200 people, accounting for about $125 million net sales volume annually. Thomas Rogers had been a salesperson for United Airflow for eight years, calling on department stores, discount

Graham Manufacturing Company: Distributor of Highway Construction Equipment – Sale of a Truck-Mounted Power Shovel

In January 2017, Shattuck Construction Company was awarded a $60 mil­lion contract for building a section of interstate highway crossing New York State. The contract called for clearing, paving, bridge building, blast-ing, and landscaping 50 miles of roadway, two lanes in each direction, in the vicinity of Syracuse. Over a period of six months

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