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Assessing ASales Area's Potential
an outline of six methods of arriving at logical sales targets
Directories. It should be a matter of course for sales-teams to screen hardcopy, CD-ROM or on-line directories for
companies which fit the class of industry to which they sell. The source can vary from the maps and lists sold by Market
Location, to Kompass, the Commercial Classified directories and the appropriate trade journals. A straight count of the
companies within a region may be a guide to the potential for a product. If, for example, one knows from experience that
lithographic printers use a certain number of printer's blankets per year, then a company marketing these products can
obtain a rough approximation of the area's salespotential by simple multiplication. This means of assessingsales
potential is most suited to industrial products sold to end users who are thick on the ground and generally of small size -
like printers, foundries, general engineering workshops and schools, to name but a few.
By association. Many industrial products are used in association with others on which published data is readily available.
Using a known ratio of sales between the two products an association can be used to provide a guide to the salesareas
potential. A sales-person selling work rolls to strip rolling mills would not be able to find published figures showing the
annual consumption of his products. However, it is relatively easy to establish the number of work rolls used per
thousand tonnes of strip produced. Statistics abound on the output of steel strip from which a calculation can easily be
made to show the salespotential for rolls. The imagination can run wild in seeking associations. The output of sand and
gravel influences the consumption of screening meshes, sales of industrial bobbins are linked to the output of cloth, and
sales of guillotine knives depend on paper production.
Employment statistics. The Central Statistical Office, in their publication Regional Statistics, produce comprehensive and
up to date statistics showing the number of employees by Standard Region, within broad industrial classifications:
agriculture, forestry and fishing; manufacturing industries; and service industries. A more detailed breakdown of
employment by Minimum List Heading of the Standard Industrial Classification can be obtained from the Census of
Great Britain. In the same way that ratios can be established between strip output and work roll consumption, it is
possible for example to calculate, by region, the number of overalls consumed per employee in woodworking, metal
manufacturing or construction. The regional breakdown provided by the Census enables analyses of potential to be
carried out by Standard Region, including major conurbation's. The ratios will be more valid if they relate to products
which are consumed by employees themselves (such as personal safety equipment). Nevertheless, there may be scope
for using the same economic activity statistics to calculate the regional demand for drive belts in the textile industry or
the consumption of cement in the construction industry. Statistics are also available providing regional analyses showing
the number of companies, by their size, measured in employment terms. Lists of companies within various industry
sectors, are commercially available classified by size and geographical area. This could be of value to an industrial
caterer who defines his target as those companies employing 500 people or more. It may help a supplier of copiers to
decide how many models of different sizes he can sell in a region based on his knowledge of the popularity of models to
certain sized businesses.
Population statistics. More general population statistics published in the Census of Population are not as useful to the
industrial marketer as employment figures. Nevertheless they can be of value to certain types of companies. A
manufacturer of house bricks (or window frames) may be able to use the statistics to establish the approximate potential
for his products regionally in the knowledge that most members of the population are likely to be housed in dwellings
constructed with his products. Producers of goods purchased by local authorities (from dustbins to wheelbarrows) can
obtain a reasonable estimate of demand within an area by the population that the authority serves.
The opportunities for assessingpotentialsales is almost as wide as the ingenuity of the researcher. The miles of roads
within a county council's domain will indicate to a manufacturer of safety reflectors the current potential the sales-person
can aim for, as there is an obvious relationship between the two variables. In some circumstances, estimates as to the
potential for industrial goods may be calculable from the regionally available rateable values of industrial properties.
Even the regional incidence of sunlight and population may be found useful to some industrialists, for example, if they
produce solar water heaters.
Fieldwork. There are many manufacturers who cannot make broad assessments of the potential for their sales-team
from readily available data. For them the answer may be an interview programme in which a sample of carefully selected
companies provides an estimate of the regional potential. As our interest is in industrial marketing, it must be recognised
that random samples are impracticable owing to the different sizes of consuming companies. The omission of a large
end user would clearly bias the result and in a random sample such a company has an equal chance of being missed.
This means a high level of discretion must be given to the interviewers who could be directed to research only the
largest companies in the area. The approach may seem unscientific and it may even be messy, but it is the only one
which works. Given resourceful and diligent interviewers, the results can be very acceptable indeed - even though it may
not be possible to measure the accuracy within statistical confidence limits.
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THE METHODS that have been discussed for measuring the potential of a sales-person's region are not precise
marketing tools. In many instances the opportunity exists for the calculation of the salespotential by more than one
method, so providing crosschecks.
Obviously the awareness of the potential in a region does not in itself set the sales target. This may be open to debate
depending on views of what is attainable. However, the assessment of the area’s salespotential does put the sales-
person’s target in perspective; it shows the total business to go for and it may well indicate a much greater opportunity
than had previously been recognised. Indeed, the sales-person and sales manager may otherwise be under the
misapprehension that an extra 10 per cent is good enough.
. Tài liệu tham khảo – www.marketingchienluoc.com
Assessing A Sales Area's Potential
an outline of six methods of arriving at logical sales targets. wheelbarrows) can
obtain a reasonable estimate of demand within an area by the population that the authority serves.
The opportunities for assessing potential sales