Question

The manager at a local recreational vehicle store, Recreational Outfitters, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a ____ approach to estimating sales potential.

Answer 1

Answer:

The correct is breakdown.

Explanation:

The sales forecast is the central part of the strategic planning process since it becomes the cornerstone of all the company's planning, budgeting and operational decision making. Sales managers care about five levels to calculate demand. Market capacity is the maximum amount of a product or service that the market could use regardless of the price of the product. The potential of the market is the largest possible sale in an entire industry of a product or service over a given period. The sales potential is the potential of the greater market share that a given company can expect to achieve. The sales forecast is the best estimate of the company's dollar or unit sales to be achieved during a given period under a proposed marketing plan. Sales quotas are the sales goals or objectives that are assigned to individual sellers or to the entire sales force.

Answer 2

Answer:

The correct word for the blank space is: breakdown.

Explanation:

The breakdown approach is a sales forecast analysis based on economic events that could help the firm identify its market potential. With this forecast, companies can determine the number of employees that should be added to their salesforce or if they already have enough labor hand to meet their sales level expectations.

The approach also assumes each sales representative of the firm has the same skills, thus, relatively similar productivity.