WGU D099 Unit 7

D099 Unit 7 ssumm68 Created 25/09/23 Save Share Market Potential Definition Sales Potential Definition Market Share Definition Sales Pipeline Definition Sales Forecasting Techniques 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 • The maximum or total sales from all perspective buyers of a product for a single firm, generally a percentage of total market potential • The portion of a market controlled by a particular company or product; expressed in dollars or units • 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 • Give it a go

Expert Opinion Sales Force Composite Executive Opinion Delphi Technique Decomposition Rollover Technique Moving Average Exponential Smoothing Time Series Technique Weighted Moving Average Gathered from knowledgeable experts who work outside a company• A forecast generated from estimates of sales over a period of time and gathered from a company's sales representatives • The estimates of all the company's executives are averaged to form an overall forecast • A group of experts provide an anonymous forecast, which are all collated and then sent to the entire group • A time series analysis that adjusts for seasonality and is predictable• A technique that takes the previous period's sales, copies them, and uses them for the current period's forecast • Calculated by taking a subset of sales figure data and averaging them• Factors in all sales data but calculates the most recent observations most heavily• Make forecasts based solely on the historical pattern of data• A weighted average of the last “n” prices, where the weighting decreases with each previous price •

Sales Quotas Activity Quotas Revenue Quotas Combination Quotas Volume Quotas Direct Quota Sales Forecasting Methods Incremental Method Workload Method Breakdown Method Expected Value Analysis 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 • Require salespeople to sell enough units of a good to generate a certain amount of profit or margin • Combine the different types of quotas• Entail the registration of new users or moving inventory, not landing new clients or accounts • A quota set for people who are in the front line of sales and have the power to impact their quota results • Sales representatives are added to the workforce until marginal cost is greater than marginal revenue • All sales representatives have an equal share of the workload• Divides the forecasted sales volume by the average productivity of one sales representative •

Overlay Quotas Budgeting Master Budget Sales Budget Administrative Budget Production Budget Business Strategies Outsourcing Freelancing Downsizing 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 • Assigned to people who supervise the sales representatives• Consists 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 • Considers numbers sold, expected budgeted price, and values of sales• Determined by looking at functions such as office expenses, office rent, research and development costs, and legal costs • Determines how much money is needed for production by using the sales forecast, required number of units for inventory, and the units in inventory • Occurs when a business hires a third party to perform some of its tasks, such as production, customer service, and marketing • Happens when a self-employed person performs work for a business•