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Analysis of Sales Volume: Evaluating Strategies, Territories, and Products

Learn how to effectively analyze sales volume to determine successful strategies, identify underperforming territories, and optimize product sales. Discover the 80-20 principle and how it can help maximize profits. Explore the importance of sales force automation in sales analysis.

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Analysis of Sales Volume: Evaluating Strategies, Territories, and Products

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  1. 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. Interrelationship of planning, implementation, and evaluation • Planning • Set goals • Determine strategies & tactics • Implementation • Organize • Staff • Operate • Evaluation • Compare goals and results • Explain variances

  3. The Evaluation Process (Fig 14-2) To Find Out: Whathappened Whatto do about it Whyit happened

  4. 80-20 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. Total Sales Figures May Hide Significant Problems (Fig. 14-3) Total Sales Volume Territory A Time (years)

  6. Bases for Analyzing Sales Volume • Total Sales Volume • Sales by Territories • Sales by Products • Sales by Customer Classifications

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

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

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

  10. 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, marekting, accounting, purchasing, manufacturing). • Salespeople are sometimes resistant to SFA initiatives.

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