December 2017
Intermediate to advanced
390 pages
7h 51m
English
Content preview from Measuring Marketing
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Chapter 94 Percent of Sales
Measurement Need
To determine the optimal sales force size as a percentage of total sales.
Solutioni
The percent of sales measurement is calculated using the following steps:
- Forecast planned revenues
- Determine percent of sales based on industry standards, the firm’s own historical performance, or a combination of both
- Budget for management and field sales roles
Let’s assume that a Sydney-based food manufacturer of classic Fish and Chips had sales of $50 million last year and anticipates 20% growth next year, to $60 million in sales. It sells to retail chains and individual sidewalk vendors, and the industry average for the cost of the sales force as a percentage of total sales is 3.6%. The company’s sales ...
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