Definite concepts

Question 1

Sales forecasting

Answer 1

is an estimate of sales (in dollar or unit) that an individual from expects to achieve in a stated market under a proposed marketing plan.

Question 2

Factors influencing sales forecasting

Answer 2

1. Marketing plan
   - changes in price structure
   - channels of distribution
   - promotion mix
   - internal marketing
2. Conditions in the Industry
   - competition
   - new products
   - raw materials
3. Market conditions
   - the oil market
4. General Market conditions
   - overall economy
   - serious surprise events (black swan corona virus)
   –> sales forecasting methods (method survey)
   a. executive opinion
   b. sales force composite
   c. buyers intention

Question 3

Sales territories

Answer 3

comprises a number of present and potential customers located within a given geographical area and assigned to a salesperson, branch, or intermediary (retailer or wholesaler)

Question 4

Sales territories - benifits of correct assignments

Answer 4

• enhance customer coverage
• reduce travel time and selling costs
• provides more equitable rewards
• aids in evaluating the sales force
• increases sales for an organization
• increases morale

Question 5

Designing territories 6 steps

Answer 5

1. select a control unit for territorial boundaries
2. Determine location of potential customers.
3. Determine basic territories
4. Assign sales people to the territories
5. Set up territorial coverage plans for the sales force team
6. Evaluate