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Provide a 12 pages analysis while answering the following question: Marketing Analysis of Zenith Computer Terminals. Prepare this assignment according to the guidelines found in the APA Style Guide. A
Provide a 12 pages analysis while answering the following question: Marketing Analysis of Zenith Computer Terminals. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. To achieve the net profit of at least $1 million, sales volume must be increased by 21% from $10 million to $12,125,000. Of this amount, $11 million must be generated by the existing 20 sales representatives by increasing their annual sales 10% for the current year. For the present 20 sales representatives, this is achievable because the next year is projected as a normal year and a 10% sales increase is a normal trend in this industry.
While the existing sales representatives can generate $11 million of the needed $12,125,000, to produce the additional $1million plus needed in sales, it is necessary to hire additional sales representatives. It is expected that new sales representatives can generate $300,000 in sales annually compared to $500,000 in sales for existing sales representatives. This is due to the sales learning curve and the need to build client relations. It is important to note that even if the new sales representatives are recruited as early as the beginning of the new year, it will take them at least three months to be productive.
The first month is used for recruitment, and the second month is used for classroom training and the final and third month is reserved for on-job-coaching in the field by senior representatives. Therefore, the $300,000 of expected sales calculated for a 12-month period must, in reality, be calculated over an available 9 month period. Taking this factor into account, officials forecast sales for the new sales representatives at an estimated $225,000 instead of $300,000.
Several areas of expense have increased for the company. Sales expenses have increased by 19% to address the expenses related to these new representatives. Therefore, the annual cost of $75,000 for a sales representative must be considered a factor in the bottom line. This is calculated at a cost of $6,250 per month per representative. In computing expenses, officials forecasted 9 months of this amount as an expense relative to each new sales representative getting on board after completing field coaching. No expenses related to training has been imputed as these are shouldered by .the Administration Department. .