Sales Planning

Planning is essential to the sales function. Without it, sales managers lack the benefit of long prospective.

Sales Planning
The process of combining all business plans into one integrated set of plans which becomes the Company Game Plan

Sales Planning
The Nature & Importance

Planning means deciding what to do in the future, involves setting objectives and determining ways to achieve them. Poor Managers Work on yesterdays problems Good Managers Todays problems Excellent Managers Tomorrows problems

Sales Planning
Anticipating environmental developments & preparing to meet or capitalize them - Controlling events instead of being overwhelmed - Environmental forces can act as threats or opportunities - 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 expected to 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 planning system. Fine tuning is best achieved by means of corporate planning department or planning committee.

Planning Hierarchy
Statement of corporate mission Reason for being Long-range plan for overall resource allocation to market Long-range plan for specific products, markets Long-range plan for Sales activities Short-run plan for implementing sales strategy
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Business plan (strategic plan)

Strategic marketing plan Strategic sales plan

Tactical sales plan

Sales Plan
The development of the future objectives of a sales department in order to improve performance and increase sales. A sales plan is a form of business plan that sets out the short And long-term opportunities for the sales department, concentrating on building on the department's strengths and analyzing and avoiding weaknesses. It also includes the setting of future sales objectives, based on realistic projections, looking at future costs, and taking into account the objectives of other departments.

Sales Planning Process

Where do we stand now? - Situation analysis, sales force audit, present position respect to markets, products, cost, competition and other 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 to opportunities and threats. Who is going to do what, and when? - Assignment of responsibilities and deadlines.
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Sales Planning Process

How much will be the plan cost? What do these cost 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 in conditions have occurred

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Sales Planning Process

Analysis

Control

Setting sales objectives

implement ation

Strategies

Tactics

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Sales Planning Process

Analysis Phase

Last five years

- How have specific products, territories and accounts developed in terms of sales profitability? - How has the market evolved during this period? - How did we perform against competition? - What about our market share? - What can be learned from the past?

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Sales Planning Process

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 climate changing? - What new initiative our competitors are taking? - What are strengths and weaknesses ?

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Sales Planning Process

Analysis

Last five years

- What new technology, capabilities should we use or develop? - What emerging opportunities could we profitably seize upon? SWOT Analysis
Macro environment technological, economical, political, legal, socio cultural & demographic trends

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Sales Planning Process

REMEMBER
Analysis of external and internal forces and trends lead to a sales forecast.

Sales Planning Process

Setting sales objectives
Objectives are desired ends, conditions or occurrences that provide motivation and orientation for purposeful action. They provide the specific direction for sales organizations activities and answer the question where do we want to go?. Clearly, a sales organizations objectives must be consistent with the mission and marketing objectives of the company. Sales objectives serve as guideline and yardsticks for sales managers and salespeople. The level of attainment then 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

direct coordinate coordinate coordinate

Sales Objective
Sales Strategies Sales tactics Implementation Sales control
coordinate coordinate coordinate

Marketing strategies
Marketing mix Marketing execution

RSM/ASM Sales objectives RSM/ASM Sales strategies

Review and revise

RSM/ASM Sales tactics

Personal sales quotas & plans

Marketing control

report

report

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Sales Planning Process

Strategies Blueprints of for action that reconcile sales managements resources with environmental constraints

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Sales Planning Process

Strategies
Overall cost leadership

- Lower production and distribution cost

competitive price, larger market share

Differentiation

- Quality leader, style leader, technology leader

chosen customer benefit area

Firm must use its strength to create competitive advantage in the

Focus

- Product segmentation, market segmentation

specific market, develop targeted marketing strategy sales specialist

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Sales Planning Process

Tactics

Activities required to implement sales strategies to achieve sales objectives

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Sales Planning Process

Tactics Push Tactics- trained, skilled, motivated field force use

all promotional tools effectively to move merchandise into the distribution channel distribution depth & width Creation of end user demand through ATL & BTL activities that force the trade to carry and keep restocking a firms products extensive market coverage

Pull tactics

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Sales Planning Process

Implementation
Plans must be strongly & clearly communicated to Regional, District and Supervisory level Close follow up at all levels

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Sales Planning Process

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, distribution by product, current account status)

7 Organization
(Administration, sales /account service, marketing services)

8 - Financial

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THANX

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