* Some commonly used sales forecasting methods: 1. Jury of executive opinion method. 2. Sales force composite method. 3. Customer expectations method. 4. Time-series analysis. 5. Correlation analysis 6. Other quantitative techniques. 3. Managing the Sales and Relationship-Building Process * (2) establishing sales territories and quotas It is much easier to pinpoint customers and prospects and to determine who should call on them when the market is geographically divided than when the market is considered a large aggregate of potential accounts. Sales quotas represent specific sales goals assigned to each territory or unit over a designated time period. 3. Managing the Sales and Relationship-Building Process * Sales quotas provide three main benefits. quotas provide incentives for salespeople. quotas provide a quantitative standard against which the performance of individual sales representatives or other marketing units can be measured. quotas can be used not only to evaluate salespersons’ performances but also to evaluate and control their efforts. 3. Managing the Sales and Relationship-Building Process * (3) Analyzing Expenses Sales forecasts should include a sales expense budget. In some companies, sales expense budgets are developed from the bottom up. These estimates are usually prepared for a period of a year and then broken down into quarters and months. 3. Managing the Sales and Relationship-Building Process * (4) Motivating and Compensating Performance There are two basic types of compensation: salary and commission. Salary usually refers to a specific amount of monetary compensation at an agreed rate for definite time periods. Commission is usually monetary compensation provided for each unit of sales and expressed as a percentage of sales. 3. Managing the Sales and Relationship-Building Process * other forms of incentives that can be used to motivate the sales force 3. Managing the Sales and Relationship-Building Process *
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