From the course: Sales Management Foundations
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Forecasting sales performance
From the course: Sales Management Foundations
Forecasting sales performance
- To create territories, you first need to forecast both the market potential and the sales potential in your areas. Market potential is what you and all the companies like you expect to sell in that area. It's the potential sales for your entire industry in that area. Sales potential, on the other hand, is what your company expects to earn out of that total market potential. In other words, it's your share of the market. Now, forecasts can be based on objective data or subjective data. Objective methods look at past historical data as an indicator of future performance. For example, you might look at the last several years of company sales, and this would tell you if the company's sales are growing, staying flat, or perhaps declining. And based on that, you'll have to decide where those trends will continue, or if there is something you're planning to do that will change those trends. Subjective techniques are based…
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