Explain the concept of a marketing profitability analysis

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Assignment:

1. What control unit would you recommend in establishing sales territories for the following companies? Support your recommendation.

a) Manufacturer of laptops.

b) Food broker.

c) Appliance wholesaler.

d) Manufacturer of textile machinery.

e) Manufacturer of outboard motors.

2. Salespeople normally are prohibited from going outside their territorial boundaries in search of business. Sometimes, however, a customer located in one district will voluntarily seek out a sales rep or branch office located in another district. Perhaps this customer can realize a price advantage by buying outside his or her home area. What should be the position of the seller in these situations? Should it reject such business? Should it insist the order be placed in the territory where the customer is located? If the order is placed in the foreign territory, should the salesperson in the customer's home territory be given any commission or other credit?

3. Assume that a territory's potential has increased to the point where the district should be realigned to form two territories. Properly developed, each of the two new units should bring an income equal to what was previously earned in the one large district. Should management assign the same salesperson, who formerly had the combined territory, to one of the new districts? Or should the rep be transferred to an entirely different area before the division is attempted?

4. What can sales managers do to ensure that their salespeople readily accept and properly use sales force automation (SFA) software?

5. Explain the relationship between planning and evaluation in the management process.

6. Explain the concept of a marketing profitability analysis.

7. What is the 80-20 principle, and how does it apply to sales performance evaluation?

8. If a firm's volume is increasing each year by a satisfactory percentage, is there any reason for the firm to go to the expense of a volume analysis?

Reference no: EM133211770

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