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Page 10 of 14
Selling
How do I set sales targets?
Sales objectives or targets usually serve at least 2 functions:
- They form the essential foundation for the budgets and activities of the business for a future period
- They specify to the sales force the level and timings of sales to be achieved
Sales targets are the decision based on a sales forecast. The decision takes into account a range of other factors such as the level of the business fixed costs and expectations for growth. It is all too easy to set targets that, with hindsight, prove to be unrealistic.
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