Professional Documents
Culture Documents
Training Sales Marketing
Training Sales Marketing
Elasticity e = P Q
---- -------
Price P
P Q
Quantity Q
Supply Curve
Stable point is at intersection (Spider diagram)
Supply
S
Price P
Demand
D
Quantity Q
Cost of Production
25
20
15
Unit Cost
Money
10
Unit Price
5
0 Profit/unit
-5
1
11
13
15
-10
Quantity
Gross Profit
120
100
80 Revenue
Money
60 Expenditure
40 Gross Profit
20
0
1 2 3 4 5 6 7 8 9 10
Quantity
Channels
Direct Sales
Distributor/Retailer
– Distributors are your customers
• National
• International
Chose carefully -
– changing is expensive and difficult
– Key sales
– Opinion formers
Direct sales
Bespoke -
– sales staff/ Customer relationship manager
– cash flow
Mail order requirements
– Product
– Guarantees
– Stocking
– Support
– Key accounts
– Market communications
Distribution Channel
Typical product
– 40% manufacturer
• development, materials, overheads, profit, research
– 30% distributor
• Advertising, stocking, profit
– 30% retailer
• Local adverts, shop front, staff, profit
International
– Localisation
– Country agent
• control/performance
– Trade fairs
• DTI outward bound missions
• Embassy
Ballpark pricing
Sales Forecasts
Company Amount ------Time Analysis------- Product Analysis Comments
Q1 Q2 Q3 Q4
Call analysis
Sales Cost analysis
Control and Commissions
Control
– Sales organisation structure
• By product
• Geographical
• By channel, key account
Measurement
• Cost per sale
• Response rate
• Timeliness
• Individual measures, targets
Commission
– Don’t stint
• Basic salary
– Pay on delivery, or payment