0
Sales Potential Method.
This method is based on the assumption that performance of the set of activities contained in the job description represents one sales personne unit. A particular sales person may represent either more or less than one sales personal unit.
If the individual's performance is excellent, that individual may do the job of more than one unit, if the individual performance is below par, he or she may do less. If management expects all company sales personnel to perform as specified in the job description, then the number of salespersons required equals the number of units of sales personnel required.
Generally it is observed sales descriptions are constructed on management's assumption that they describ what the average sales person with average performance with accomplish.
What else can I help you with?
Define company sales potential?
•Sales Potential: Sales limit approached by company demand as company marketing effort increase relative to that of competitors. Limit is the market potential and sales potential = market potential if market share = 100%. Based on Marketing Management 12e, Kotler, Keller
What is the difference between marketing potential and sales potentials?
Marketing Potential is the total amount of product customers will purchase in a specified period and Sales potential is the maximum percentage of market share a firm can expect for a product. In other words market potential is the total market value of your product and sales potential is the percent of the market your product can take over
The percent-of- sales method can be used to forecast?
Direct costs
Discuss the shortcomings of the percent of sales method of financial forecasting?
The percent of sales method of forecasting needs to based on a series of assumptions, and the forecasting would heavily relay on the percent of sales as the key tool for forecasting. Furthermore, the percentage of sales for the next period cannot prevent the forecasting result from the expectations of the investors.
Relationship between market demand market potential and sales forecasting?
demand forecasting is crucial for sales forecast
Define company sales potential?
•Sales Potential: Sales limit approached by company demand as company marketing effort increase relative to that of competitors. Limit is the market potential and sales potential = market potential if market share = 100%. Based on Marketing Management 12e, Kotler, Keller
Installment Sales Method?
Installment sales method is a sales method used to determine revenue when a sales or service is purchased on a long term payment plan. Revenue recognition is delayed until the payment is actually made, not at the time of the sale or service delivery.
What is the formula for percentage of sales method?
The formula used for percentage of sales is quite simple. It entails figuring out the total amount of sales which is equal to one hundred percent. The particular method used is a portion of the total sales.
Mention the method of sales forecasting?
There are many methods of sales forecasting. One method is to look at what has happened in the past and based on that, predict the future.
What are the advantages of the must do sales forecasting method?
The advantages of the "must do" sales forecasting method include increased accuracy due to focusing on essential sales activities, better alignment with business goals, and improved predictability of future sales performance. This method helps prioritize key activities and resources, leading to more efficient sales planning and execution.
What is the difference between marketing potential and sales potentials?
Marketing Potential is the total amount of product customers will purchase in a specified period and Sales potential is the maximum percentage of market share a firm can expect for a product. In other words market potential is the total market value of your product and sales potential is the percent of the market your product can take over
Why is the percent of sales method known as the income statement method?
bacause its lower the sale price
What is computerized sales inventory system?
Acomputerized Sales and Inventory is a method performed through the use of computers.
Why would you use the percentage of sales method for calculating doubtful accounts?
The percentage of sales method for calculating doubtful accounts is beneficial because it provides a straightforward and systematic way to estimate potential bad debts based on historical sales data. This method aligns bad debt expenses with revenues generated during a specific period, enhancing the accuracy of financial reporting. Additionally, it allows businesses to anticipate future losses and manage cash flow more effectively. By using a consistent percentage, companies can also simplify budgeting and forecasting processes.
The percent-of- sales method can be used to forecast?
Direct costs
Why do sale people restate the customer objections?
Sales people and customer service reps use this tactic to show the customer that they understand their concerns. It is a method of calming down the upset customer, and defuse a potential problem.
What is the Percentage-of-Sales Method?
It is the method of budgeting promotions based on current revenues through sales. The basic advantage to this marketing budget setting is the simplicity and ability for marketing management to watch the relationship between promotion and sales. This method does receive more scrutiny than most other methods however. The debate is that this method shows cause and effect when in reality it is effect and cause.
