5 - Sales Planning

7/30/2019 5 - Sales Planning

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Sales Planning

Planning is essential to the sales function.

Without it, sales managers lack the benefitof long prospective.


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Sales PlanningThe process of combining all businessplans into one integrated set of planswhich becomes the Company GamePlan


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Sales PlanningThe Nature & Importance

Planning means deciding what to do inthe future, involves setting objectivesand determining ways to achieve them.

Poor Managers Work on yesterdays problems

Good Managers Todays problemsExcellent Managers Tomorrows problems


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Sales PlanningAnticipating environmental developments & preparing to

meet or capitalize them

- Controlling events instead of being overwhelmed

- Environmental forces can act as threats oropportunities

- Adaptation is the most frequent mode of coping with

environmental changes

- Sales Planning is particularly crucial and challenging

when it comes to the introduction of new products

1. Newness

2. Additional selling efforts required

3. Buyers resistance


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Sales Planning

Is important to all members of sales organization.

A well conceived sales plan generates

excitement and enthusiasm when put into action. It provides the direction and framework of sales

activities.

It helps sales personnel understand where the

sales organization is headed, how it is expectedto get there and what specific actions are to be

taken, by whom and when.


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Sales Planning Corporate Context

Sales management planning must be

implemented in concert with other

components of a companys planningsystem. Fine tuning is best achieved bymeans of corporate planning departmentor planning committee.


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Planning Hierarchy

Statement ofcorporate mission

Business plan

(strategic plan)

Strategicmarketing plan

Short-run plan forimplementing sales

strategy

Long-range plan

for Sales activities

Long-range planfor specific

products, markets

Long-range plan foroverall resource

allocation to market

Reason for being

Tactical sales plan

Strategic sales plan


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Sales Planning Process

Where do we stand now?

- Situation analysis, sales force audit, present position

respect to markets, products, cost, competition andother environmental factors.

What will the future be like?

- Trend analysis, future condition for the company,opportunities, threats, potential surprises.

Where should we heading?

- Sales objectives and strategies required to respond toopportunities and threats.

Who is going to do what, and when?

- Assignment of responsibilities and deadlines.

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How much will be the plan cost? What do thesecost cover?

- Preparation of sales budget and financial plan.

What are the results?- Collection and analysis of data required to monitor the

sales strategies and action chosen.

What changes need to made?

- Revision in sales strategies and action if the sales

organization is not on its planned course OR changes inconditions have occurred

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Analysis

Settingsales

objectives

Strategies

Tactics

implementation

Control


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Analysis Phase

Last five years

- How have specific products, territories

and accounts developed in terms of salesprofitability?

- How has the market evolved during thisperiod?

- How did we perform against competition?- What about our market share?

- What can be learned from the past?


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Analysis Phase

Last five years

- Any significant changes in behavior patterns of

our clientele?- What new technologies appear on the horizon?

- Is the political, legal and economic climatechanging?

- What new initiative our competitors are taking?

- What are strengths and weaknesses ?


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Analysis

Last five years

- What new technology, capabilities should we useor develop?

- What emerging opportunities could we profitablyseize upon?

Macro environment technological, economical,political, legal, socio cultural &demographic trends

SWOT Analysis


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REMEMBER

Analysis of external and internal

forces and trends lead to a salesforecast.


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Setting sales objectives

Objectives are desired ends, conditions or occurrencesthat provide motivation and orientation for purposefulaction.

They provide the specific direction for salesorganizations activities and answer the question wheredo we want to go?.

Clearly, a sales organizations objectives must beconsistent with the mission and marketing objectives of

the company.

Sales objectives serve as guideline and yardsticks forsales managers and salespeople. The level of attainmentthen used to evaluate the success of sales efforts.


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Process for setting sales objectives

Corporate mission

Sales forecast

Corporate objectives

Marketing objectives

Marketing strategies

Marketing mix

Marketing execution

Marketing control

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direct Sales Objective

Sales StrategiesRSM/ASM

Sales objectivescoordinatecoordinate

coordinate

coordinatecoordinate

coordinate

reportreport

Sales tactics

Implementation

Sales control

RSM/ASMSales strategies

RSM/ASM

Sales tacticsPersonal salesquotas & plans

Reviewand

revise


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Strategies

Blueprints of for action that reconcile salesmanagements resources with environmentalconstraints


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Strategies

Overall cost leadership

- Lower production and distribution cost

competitive price, larger market share Differentiation

- Quality leader, style leader, technology leaderFirm must use its strength to create competitive advantage in the

chosen customer benefit area

Focus

- Product segmentation, market segmentationspecific market, develop targeted marketing strategy sales specialist


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Tactics

Activities required to implement salesstrategies to achieve sales objectives


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Tactics

Push Tactics- trained, skilled, motivated field force use

all promotional tools effectively to move merchandise into thedistribution channel distribution depth & width

Pull tactics Creation of end user demand through ATL &BTL activities that force the trade to carry and keep restocking

a firms products extensive market coverage


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Implementation

Plans must be strongly & clearly

communicated to Regional, Districtand Supervisory level

Close follow up at all levels


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Control

Effective daily reporting system

Comparison/Monitoring

(Actual versus Planned)

Joint field visits (direction)

Timely corrective measures(Resetting objectives)


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Elements of sales & marketing plan

1 Introduction

2 Mission

3 Company outlook

(strengths, weaknesses, opportunities, threats)

4 Market status(industry, markets, key factors, purchase

criteria, price analysis, competition)

5 Objectives & strategies(by market segment, target product/service,

promotional programs. Publicity, direct mail, ATL/BTL

trade shows, presentations)


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Elements of sales & marketing plan

6 Sales Plan(Forecast by market, target accounts, distributionby product, current account status)

7 Organization

(Administration, sales /account service, marketing

services)

8 - Financial


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5 - Sales Planning

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