WGU D099 Module 12 Forecasting & Quota Development & 11 Budgeting & Planning

D099 Module 12 Forecasting & Quota Development & 11 Budgeting & Planning Leave the first rating Students also studied Terms in this set (49) Social SciencesBusinessBusiness management Save D099 Module 12 22 terms cvda00Preview Sales Management Module 6 & 7 58 terms jyasin89Preview

Unit 7: Sales Planning Process Test

16 terms rthor74Preview Sales M 70 terms Tiff Practice questions for this set Learn1 / 7Study using Learn Combine the different types of quotas Market potentialAn 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 potentialThe maximum or total sales from all perspective buyers of a product for a single firm, generally a percentage of total market potential Choose an answer 1Activity quotas2Overlay quotas 3Financial quotas4Combination quotas Don't know?

Market shareThe portion of a market controlled by a particular company or product; expressed in dollars or units Sales pipelineA 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 opinionGathered from knowledgeable experts who work outside a company Sales force compositeA forecast generated from estimates of sales over a period of time and gathered from a company's sales representatives Executive opinionThe estimates of all the company's executives are averaged to form an overall forecast What is Delphi technique?A group of experts provide an anonymous forecast, which are all collated and then sent to the entire group DecompositionA time series analysis that adjusts for seasonality and is predictable what is a Rollover technique?A technique that takes the previous period's sales, copies them, and uses them for the current period's forecast Moving averageCalculated by taking a subset of sales figure data and averaging them Exponential smoothingFactors in all sales data but calculates the most recent observations most heavily Activity quotasRequire 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 quotasRequire salespeople to sell enough units of a good to generate a certain amount of profit or margin Combination quotasCombine the different types of quotas Volume quotas isEntail the registration of new users or moving inventory, not landing new clients or accounts Incremental methodSales representatives are added to the workforce until marginal cost is greater than marginal revenue Workload methodAll sales representatives have an equal share of the workload Breakdown methodDivides the forecasted sales volume by the average productivity of one sales representative Time series techniqueMake forecasts based solely on the historical pattern of data

Weighted moving averageA weighted average of the last "n" prices, where the weighting decreases with each previous price Direct quotaA quota set for people who are in the front line of sales and have the power to impact their quota results Expected value analysisThe 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 quotasAssigned to people who supervise the sales representatives Master budgetConsists of financial budgets, such as the balance sheet and cash budgets, and its operating budgets, which include the income statement developed from sales and production forecasts Sales budgetConsiders numbers sold, expected budgeted price, and values of sales Administrative budgetDetermined by looking at functions such as office expenses, office rent, research and development costs, and legal costs Production budgetDetermines how much money is needed for production by using the sales forecast, required number of units for inventory, and the units in inventory OutsourcingOccurs when a business hires a third party to perform some of its tasks, such as production, customer service, and marketing FreelancingHappens when a self-employed person performs work for a business DownsizingOccurs when a business reduces the size of its workforce CostingOccurs when the cost of performing an element of business is assigned Activity-based costingA costing method that first assigns costs to activities, then assigns costs to products based on their consumption of activities Cost driverA cost driver is an activity or transaction that causes costs to be incurred Activity centerAn activity center is a unit of the organization that performs some activity Aggressive customersnot only demand the highest product quality and the best service but also want the lowest prices Passive customersDo not generate high costs, but they are willing to accept high prices Bargain basement customersDo not require much service, but they also do not generate high profits Carriage trade customersGenerate high revenue but could also be expensive to serve

UpsellingThe practice of selling an item that is a higher-end product in order to generate more revenue Cross-sellingOccurs when a customer is encouraged to purchase an additional product that can be used in conjunction with the original product Contribution marginAllows costs to be assessed to determine how much is available from each division to cover fixed costs, as contribution margin analyzes sales' less variable costs Full costingA costing method in which the complete end-to-end costs of producing products and services are determined Balance sheetA balance sheet is a statement of assets, liabilities, and capital for an organization at a particular point in time ControlMonitoring the behavior of organizational members and the effectiveness of the organization itself to determine whether organizational goals are being achieved, and taking corrective action if necessary Return on Assets ManagedMeasurement of profit used to evaluate marketing proposals Customer profitability analysisGrouping customers into profitability segments and determining the costs associated with each group.Sales potential forecastDescribes the number of prospects and their buying power RACI matrixA responsibility assignment chart that maps out tasks, milestones, and key decisions and assigns the roles of responsible, accountable, consulted, and informed