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crm:metrics:sales_growth
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Sales growth

Sales can be defined as the valuated turnover of the economic goods in the operating area of the business at hand. It results from the multiplication of quantity by price1):

S = Q x P (with: S = Sales; Q = Quantity; P = Price)

The growth of sales then means its percentage increase in the applicable year compared to the prior year.

However, it is important to distinguish between monetary unit sales growth and real sales growth. The first case simply refers to the monetary unit increase in sales, whereas the latter term refers to the rise in sales less the amount that is due to inflation.2)

Sales growth can be used as a Key Performance Indicator (KPI) for individual products or product groups to assesses market level trends and give guidance to the whole industry.

1) Cf. Schierenbeck, Henner (2002) “Value Controlling: Grundlagen Wertorientierter Unternehmensführung”, 2. Auflage, Oldenbourg Wissenschaftsverlag
2) Cf. Koschnick, Wolfgang J. “Dictionary of Marketing and Market Research”, http://www.medialine.de/deutsch/wissen/dictionary-of-marketing.html
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crm/metrics/sales_growth.txt · Last modified: 2013/05/29 21:19 (external edit)