Using the exhibits in Chapter 5, you can provide your assessment of the size of the market you believe the company should achieve. You should describe your markets economic environment, your estimate of the gross sales to be achieved and then select one or more of the forecasting methods described in Chapter 5 to establish high level sales quotas. The exhibit on “Sales Forecasting” methods provides a good description of each method’s techniques and their advantages and disadvantages. For existing products, a review of past performance should be considered. For new products, predictive models will be needed. Both should be supported by external research. With this information you can set the top level sales quotas, a preliminary description of the sales force size and the allocations you will assign by person, region, product or customer group that aligns with your strategy and needs of the market.
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