How can SPPD indicate productivity in sales?

Sales Per Point of Distribution (SPPD) is a metric that helps to assess how well a product is performing in terms of sales relative to its availability on store shelves. By focusing on the dollar sales generated per point of distribution, this metric gives retailers and manufacturers insight into which items are more productive in generating revenue where they are stocked.

When SPPD highlights items with larger dollar sales per distribution point, it essentially shows which products not only have a strong market presence but also a high turnover rate, indicating effective demand and success in reaching customers. This information can be vital for making strategic decisions about inventory management, promotion, distribution allocation, and resource investment.

The other options, while related to sales and productivity, do not provide the same direct insight into how effectively a product is selling per distribution point. For instance, comparing average sales across all brands does not specifically focus on the efficiency of distribution. Similarly, showing total market sales or calculating total promotional costs does not necessarily reflect sales productivity in relation to distribution. Hence, the focus on dollar sales per distribution point is essential for evaluating and optimizing sales productivity effectively.