Chapter 98 Breakdown Approach
Measurement Need
They must determine how many salespeople are needed to service existing customers and also attract new customers.
Solutioni
To determine sales force size using the breakdown approach, sales professionals must know their previous sales history, projections of their own new sales for the upcoming year, and market forecasts.1 It is calculated using this formula2:
Where
SFS = sales force size
FS = forecasted sales
SPP = average sales per person
To determine sales force size, sales management must first develop total forecast sales for the year. To illustrate,3 let’s assume that a beverage company specializing in herbal soft drinks has sales of $100 million. Due to the nature of the ...
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