A Proposal to Measure the Size of an Underpenetrated Target Market in Order to Improve the Efficiency of Sales Planning in Regions Cover Image

Propozycja pomiaru wielkości słabo spenetrowanego rynku docelowego w celu poprawy efektywności planowania sprzedaży w regionach
A Proposal to Measure the Size of an Underpenetrated Target Market in Order to Improve the Efficiency of Sales Planning in Regions

Author(s): Marcin Wojciel
Subject(s): Micro-Economics, Methodology and research technology, Economic development
Published by: Społeczna Akademia Nauk
Keywords: sales planning; regional market modelling; market penetration; metrics;

Summary/Abstract: The purpose of this paper is to introduce a metrics which measures the size of an underpenetrated target market in order to improve the efficiency of regional sales planning. Sales planning is an important internal process for companies which offer their goods or services on the market. In the case of enterprises operating on the market through sales representatives in allocated regions, sales planning is also carried out on a regional basis. The basic method of territorial sales planning is adjusting regional sales targets to the capacity of target markets in the regions. On the basis of information about the capacity of regional markets and the data on the company’s own sales, it is possible to estimate the scale of ineffectiveness of the sales to date. The introduction of a metric that measures the size of the market where the penetration of the target market is lower than the average can be the starting point for improving the efficiency of the territorial sales planning process, which should develop sales and, as a result, increase the company’s revenues. This method may be applied on markets such as insurance or FMCG market where sales volume is a result of regional sales force activity.

  • Issue Year: 19/2018
  • Issue No: 3.2
  • Page Range: 353-364
  • Page Count: 12
  • Language: Polish