Question

Margie noticed that sales of her company's newest bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who ride long distance.

Refer to Scenario 2.6. What method of analysis is Margie using?

a. performance assessment
b. sales analysis
c. marketing cost analysis
d. performance comparison
e. strategic analysis

Answer 1

It is B, ‘Sales Analysis’.

Companies usually go for the sales analysis every year. They evaluate the whole sales process just to determine the increase or decrease in the sales during a fiscal year.

Sales managers analyze the causes and reasons for the increased or decreased sales volume over a period of time.

Large companies usually go for the sales analysis once in a year whereas small companies tend to analyze their performance quarterly or after six months to have a look at a possible sales outcome.

Answer 2

The answer is "b. sales analysis".

Sales analysis analyzes deals reports to perceive what goods and services have and have not sold well. The investigation is utilized to decide how to stock, how to gauge the viability of a business drive, how to set assembling limit and to perceive how the organization is performing against its objectives.

Normally a sales analysis will contrast one time span with a comparable period before.