NIVRAHA151_00189 
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MARKETING 135 )n a few correlation is + 1 . If no relationship is found to exist, the correlation is 0. rude, has If the highest in sales is the lowest in the economic factor, and so on for every [justified territory, the correlation is —1. Actual correlation coefficients may be at territory. any point between the extremes. By means of multiple and partial correlaic for the tion, the various factors found to correlate with sales may be assigned weights, ler broad so that their combined index will have the highest correspondence with sales. This method has in the past ten years been tried out by market statisticians tribution for different types of companies—life insurance, chain stores, meat packing, r. and others. It would probably prove useful in companies, the sales data of f specific which lend themselves to this method. customer Some of its weaknesses may be illustrated with the experience of a life r may be insurance company which in 1920 used the correlation method for determining il groups, sales quotas of all their agencies for the following year. The relationships ng power discovered existed for 1918 and 1919, but abrupt changes in economic trends in ich value. 1920 and 1921 overturned them. based on Relationships between sales and other data measured in terms of corïscription relation coefficients may be applied to the future by assuming that these xisting in external forces will continue to maintain their positions relative to the company's sales and that the future sales efforts of the company will be exerted sis which in the same way. As a matter of fact, both the external and internal factors ! belongs. are like streams flowing in somewhat different directions, with different vola relative umes and rates of flow, sometimes abruptly changing, so that the exact relationships discovered may not continue to exist, ercentage There are so many uncontrolled variables when correlations of business ', in each data are figured, that the coefficients usually have been found to be low, and compute the "probable error" is high. This has been found the case in chain store bave been data. When the territorial units used in the correlations are states or terrihas been tories of any considerable area, the number of cases tabulated is so small that 0 account it indicates a high probable error. The assumptions underlying the use of correlation methods for sales ir secured quotas under many conditions may be questioned. As a practical tool, this le Kansas statistical method would measure sales relationships in terms of millimeters s year, at while practical working forces playing upon the situation would call for rritory. measurements in meters. Correlation methods may be useful for research jasis than in sales problems rather than for current quota operations, available Promotional Factors Locally Considered. Economic statistics and past '.hanges in sales records may furnish the skeleton for sales quotas, but if they are ever mpetitors to take on the forms of life they must be filled in with the flesh and blood of is basis of local conditions locally appreciated. Some of these elements of considerable 3 on what importance are qualitative, and cannot be statistically expressed. Some of ts of each them are psychological and exist in the habit structures of people in the community. '.ployed to Other local considerations for many lines of business, have to do with lie series. the location of the sales unit on the street or in the city, and the building sales is bs' and equipment to be used for sales or sales offices. The amount of space ie second available for selling purposes, its shape, use of basements or upper floors, wn to tli6 positions of doors and stairways, amount and character of windowdisplay ,ctor^—the space, and many other physical elements affecting potential sales may vary 4
Beschrijving voorwerp
Titel  Handbook of business administration 
Jaartal  1931 
Collectienaam  NIVRA Historisch Archief, UBVU gedigitaliseerd 
PPN  344556336 
Toegangsgegevens (URL)  http://imagebase.ubvu.vu.nl/getobj.php?ppn=344556336 
Signatuur origineel  NIVRAHA151 
Evaluatie 
Beschrijving
Titel  NIVRAHA151_00189 
Transcript  MARKETING 135 )n a few correlation is + 1 . If no relationship is found to exist, the correlation is 0. rude, has If the highest in sales is the lowest in the economic factor, and so on for every [justified territory, the correlation is —1. Actual correlation coefficients may be at territory. any point between the extremes. By means of multiple and partial correlaic for the tion, the various factors found to correlate with sales may be assigned weights, ler broad so that their combined index will have the highest correspondence with sales. This method has in the past ten years been tried out by market statisticians tribution for different types of companies—life insurance, chain stores, meat packing, r. and others. It would probably prove useful in companies, the sales data of f specific which lend themselves to this method. customer Some of its weaknesses may be illustrated with the experience of a life r may be insurance company which in 1920 used the correlation method for determining il groups, sales quotas of all their agencies for the following year. The relationships ng power discovered existed for 1918 and 1919, but abrupt changes in economic trends in ich value. 1920 and 1921 overturned them. based on Relationships between sales and other data measured in terms of corïscription relation coefficients may be applied to the future by assuming that these xisting in external forces will continue to maintain their positions relative to the company's sales and that the future sales efforts of the company will be exerted sis which in the same way. As a matter of fact, both the external and internal factors ! belongs. are like streams flowing in somewhat different directions, with different vola relative umes and rates of flow, sometimes abruptly changing, so that the exact relationships discovered may not continue to exist, ercentage There are so many uncontrolled variables when correlations of business ', in each data are figured, that the coefficients usually have been found to be low, and compute the "probable error" is high. This has been found the case in chain store bave been data. When the territorial units used in the correlations are states or terrihas been tories of any considerable area, the number of cases tabulated is so small that 0 account it indicates a high probable error. The assumptions underlying the use of correlation methods for sales ir secured quotas under many conditions may be questioned. As a practical tool, this le Kansas statistical method would measure sales relationships in terms of millimeters s year, at while practical working forces playing upon the situation would call for rritory. measurements in meters. Correlation methods may be useful for research jasis than in sales problems rather than for current quota operations, available Promotional Factors Locally Considered. Economic statistics and past '.hanges in sales records may furnish the skeleton for sales quotas, but if they are ever mpetitors to take on the forms of life they must be filled in with the flesh and blood of is basis of local conditions locally appreciated. Some of these elements of considerable 3 on what importance are qualitative, and cannot be statistically expressed. Some of ts of each them are psychological and exist in the habit structures of people in the community. '.ployed to Other local considerations for many lines of business, have to do with lie series. the location of the sales unit on the street or in the city, and the building sales is bs' and equipment to be used for sales or sales offices. The amount of space ie second available for selling purposes, its shape, use of basements or upper floors, wn to tli6 positions of doors and stairways, amount and character of windowdisplay ,ctor^—the space, and many other physical elements affecting potential sales may vary 4 
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