1. 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

2. 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

3. 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:

4. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 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. 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

6. 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

7. 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)

8. 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)

9. 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)

10. 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.