Parkin Laboratories: Sales Target Dilemma
(4 pages of text)
At the end of the year’s third quarter, the sales team at a generic-pharmaceutical company has achieved just 91 per cent of its sales target, and growth is less than what was anticipated. The general manager of sales needs to decide whether he can revise the sales targets for the last quarter of the year without compromising growth. He also needs to address the impact of launching a new product when the sales team is striving to achieve its budgets and devise strategies the sales team can use to achieve their sales targets during a selling downturn.
- To understand the various factors affecting sales management.
- To discuss how sales targets can be decided by considering a firm’s internal and external factors.
- To discuss how sales targets can be used to motivate the sales force.
- To discuss the role of other strategies, such as sales promotions, when achieving the targets.
This case is suitable for an advanced undergraduate, an MBA or an executive education marketing class on sales management, sales performance management or sales targets. The case explores the various factors to consider when deciding on sales targets, including industry growth, segment growth, previous-year sales, additional sales force, launch of new products and promotional plans. Students will work out the strategic choices available to an organization, by evaluating the options and devising strategies for successful sales performance.
India, Large, 2012
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