Copyright © 2003 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
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Interrelationship of planning, implementation, and evaluation Planning Set goals Determine strategies & tactics Implementation Organize Staff Operate Evaluation Compare goals and results Explain variances
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Evaluation Process (Fig 14-2) What happened Why it happened What to do about it To Find Out:
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved 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
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Total Sales Figures May Hide Significant Problems (Fig. 14-3) Sales Volume Time (years) Total Territory A
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Bases for Analyzing Sales Volume Total Sales Volume Sales by Territories Sales by Products Sales by Customer Classifications
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Information Used In Analysis Of Total Sales Volume, Colorado Ski Company (Fig. 14-4)
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Analysis of Territorial Sales Volume in five-Territory Western Division, Colorado Ski Company (Fig. 14-5)
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Analysis of Product Sales Performance in Two Territories, Colorado Ski Company (Fig. 14-6)
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 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.