Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e
- Implementing and
Controlling Marketing
Plans: Evolution and
Revolution
Text © The McGraw−Hill
Companies, 2002
Implementing and Controlling Marketing Plans: Evolution and Revolution 561
- Price or discount class.
- Method of sale—online, telephone, or sales rep.
- Financial arrangement—cash or charge.
- Size of order.
- Commission class.
While some sales analysis is better than none—or better than getting data too
late for action—sales breakdowns that are too detailed can drown a manager in
reports. Computers can spew out data faster than any manager can read. So wise
managers only ask for breakdowns that will help them make decisions. Further, they
use computer programs that draw graphs and figures to make it easy to see patterns
that otherwise might be hidden scrolling through online tables with a browser. But
to avoid coping with mountains of data—much of which may be irrelevant—most
managers move on to performance analysis.
Too much data can
drown a manager
Information Resources, Inc.,
developed the DataServer
Analyzer Software, illustrated
here, to make it easy to do sales
analysis and produce graphs that
make it easy to see patterns that
might otherwise be hidden in a
table of numbers.
Performance Analysis Looks for Differences
Performance analysislooks for exceptions or variations from planned performance.
In simple sales analysis, the figures are merely listed or graphed—they aren’t com-
pared against standards. In performance analysis, managers make comparisons. They
might compare one territory against another, against the same territory’s performance
last year, or against expected performance.
The purpose of performance analysis is to improve operations. The salesperson,
territory, or other factors showing poor performance can be identified and singled
out for detailed analysis and corrective action. Or outstanding performances can be
analyzed to see if the successes can be explained and made the general rule.
Performance analysis doesn’t have to be limited to sales. Other data can be ana-
lyzed too. This data may include inventory required, number of calls made, number
of orders, or the cost of various tasks.
Numbers are compared