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D099 Module 12
Forecasting & Quota Development
| Question | Answer |
|---|---|
| Market potential | An estimate of the possible sales for a product or service for an entire industry in a market in a stated time period under ideal conditions |
| Sales potential | The maximum or total sales from all perspective buyers of a product for a single firm, generally a percentage of total market potential |
| Market share | The portion of a market controlled by a particular company or product; expressed in dollars or units |
| Sales pipeline | A way of tracking the progress of sales deals that a sales team is currently working on and expects to close within a reasonable period of time |
| Expert opinion | Gathered from knowledgeable experts who work outside a company |
| Sales force composite | A forecast generated from estimates of sales over a period of time and gathered from a company's sales representatives |
| Executive opinion | The estimates of all the company's executives are averaged to form an overall forecast |
| Delphi technique | A group of experts provide an anonymous forecast, which are all collated and then sent to the entire group |
| Decomposition | A time series analysis that adjusts for seasonality and is predictable |
| Rollover technique | A technique that takes the previous period's sales, copies them, and uses them for the current period's forecast |
| Moving average | Calculated by taking a subset of sales figure data and averaging them |
| Exponential smoothing | Factors in all sales data but calculates the most recent observations most heavily |
| Activity quotas | Require that salespeople reach a certain quota, such as a number of new clients, make a specified number of phone calls, or land a predetermined number of deals |
| Revenue quotas | Require salespeople to sell enough units of a good to generate a certain amount of profit or margin |
| Combination quotas | Combine the different types of quotas |
| Volume quotas | Entail the registration of new users or moving inventory, not landing new clients or accounts |
| Incremental method | Sales representatives are added to the workforce as long as revenue generated exceeds costs |
| Workload method | All sales representatives have an equal share of the workload |
| Breakdown method | Divides the forecasted sales volume by the average productivity of one sales representative |
| Time series technique | Make forecasts based solely on the historical pattern of data |
| Weighted moving average | A weighted average of the last “n” prices, where the weighting decreases with each previous price |
| Direct quota | A quota set for people who are in the front line of sales and have the power to impact their quota results |
| Expected value analysis | The value at some point in the future which Is calculated by multiplying each of the possible outcomes by the likelihood each outcome will occur and then adding up those values |
| Overlay quotas | Assigned to people who supervise the sales representatives |
Created by:
kim.miller