This document discusses setting sales objectives for a sales force. It outlines qualitative and quantitative objectives, with qualitative objectives being long-term like maintaining customer contacts and quantitative objectives including sales volume. Sales volume is the key quantitative objective that other metrics like market share and profitability derive from. The document also discusses determining market potential, sales potential, and sales forecasts, with sales potential being the maximum sales open to a company and forecasts being lower due to constraints. Several methods for sales forecasting are listed.

1. SALES FORCE
MANAGEMENT
Setting Sales Objective30 March 2015
BY: YAZAD UMRIGAR

2. Hierarchy of Objective Setting
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Personal Selling Strategy
Role of Personal Selling in Total
Promotional Programme
Qualitative Objectives for
Personal Selling
Quantitative Objectives for
Personal Selling
 The qualitative personal-
selling objectives are long
term and are carried over
from one year to other.
 The sales volume
objective is the key
quantitative objective. All
other quantitative
objective derives from or
is related to the sales
volume objectives.

3. Some Qualitative Sales
Objectives
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 To maintain contacts with present customers
 To search out and obtain new customers
 To keep customers informed on changes in
product line and other aspects of marketing
strategy
 To provide technical advice and assistance to
customers
 To assist in training customers employees related
to product
 To collect and report market information of interest
and use to company management

4. Some Quantitative Sales
Objectives
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 The sales volume objective i.e. the dollar or
unit sales volume is the key quantitative
objective.
This objective govern other quantitative
objectives like
 Market share expansion
 Profitability of orders
 Product diversification
 Control personnel selling expenses
 To capture wallet share

5. Market Potential, Sales Potential
&
Sales Forecast
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 A market potential is an estimate of
the maximum possible sales
opportunities present in a particular
market segment and open to all
players during a stated future period
 A sales potential is an estimate of
the maximum possible sales
opportunities present in a particular
market segment open to a specified
company during a period.
 A sales forecast is an estimate of
sales, in dollars or physical units, in
a future period under assumed set of
internal and external factors
MP
SP
SF

6. Example – Maruti Alto
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MP – All potential buyers
of small petrol cars
SP – All
potential buyers
of Alto
SF –
Expected
Sales of Alto
Market Share =
SF/MP

7. Market Definitions
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8. Market for Maruti Small Cars
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All
passenge
r cars
SUVs,
big cars
Small
Cars
Electric
Small
Cars
Petrol
Small
Cars

9. Finding Market Potential
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Market
Identification
• Who buys the
product?
• Who can buy
the product?
Market
Motivation
• Why do people
buy?
• Why people
don’t buy?
Market Factors
• What affect
product
demand
• Relevant
Market Indexes
For Maruti Alto’s market potential, market factors could be
person
reaching certain age in a year, fuel prices and interest rates.
Market
indexes could be GDP growth, per capita income etc.

10. Why Sales Potential is not
Forecast
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Sales potential is how much company can sell if
it has
all the necessary resources and desired to use
them.
Sales forecast is lesser than sales potential
because:
 Production capacity limitations
 Distribution network constraints
 Limited Financial Resources
 Whole market is not profitable

11. Sales Forecasting Methods
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 Jury of Executive Opinion
 Poll of Sales Opinion
 Projection of Past Sales
 Time series analysis – Mathematical model
based on cyclical trends, seasonal changes
and fluctuations
 Survey of Customer’s buying Plans
 Regression Analysis
 Econometric Model Building

12. Industry Forecast and Company
Sales Forecast
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 The link between industry market forecast and
company forecast is Market Share
 Market Share determination is as tricky as
determining sales forecast
 Information on competitors' plans to launch
new models, advertising and selling strategies
is needed
 Forecasting a company’s market share varies
in complexity from one industry to other

13. Deciding Sales Volume
Objective
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 A sales forecast do not automatically become
company's sales volume objective but acts as
an starting point
 The sales volume objective should be
consistent with management's profit
aspirations and company’s marketing
capabilities.
 Provision for eventuality, local factors and
capability plays an important role in
determining sales objective.

14. Steam Turbine Example
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Projections from 12th and 13th Five Year Plan. Gestation Period.
Historical Achievements in Previous Plans
Share of various technologies, fuel types and efficiency level. Various
segments
Company’s own expansion plans, new product launches, competitor’s
product launches. Potential customers’ capex plans
Sales objective of a given year.

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.....cntd....Steam Turbine
Example
Power capacity installation in Year 2015 50 GW
Coal Based power capacity installation in Year 2015 30 GW
Retirements coal based power generation in year 2015 5 GW
Total coal based installation in year 2015 35 GW
Gestation Period 2 years
Market of coal based power generation in 2013 35 GW
Market of coal based power generation of capacity upto 250
MW
10 GW
Price/GW Rs 1000,000
Total Market Potential in 2013 Rs 10,000,000
Expected Market Sahre in 2013 50%
Sales Potential in 2013 Rs 5,000,000
Sales Forecast in 2013 Rs 3,000,000
Sales Objective in 2013 Rs 2,500,000