Strategic Planning and Sales Strategy

Strategic Planning

• Strategic planning is deciding about the organization's long-

term objectives and strategies

• In a large organization, planning is done at three or four

organizational levels, as shown in the next slide
Hierarchy of Strategy
• Where is sales strategy in the hierarchy of strategies?

• What is the connect between marketing and sales

strategies?
 Marketing and Sales Strategy
Sales
promotion
strategy
Product /
service
strategy
Target
Advertising
market
strategy
strategy
(Long- Promotion /
term) IMC*
strategy
Marketing Personal selling /
Strategy sales strategy
Price
Marketing strategy
mix
strategy
(Short- Public relations &
term) Publicity strategy

Distribution
strategy
Direct marketing
strategy
• Suggest a Sales Strategy for an air conditioning

company operating in the domestic market? Make

suitable assumptions if needed

• What constitutes a sales strategy?

 Sales Strategy

What are the various components of sales strategy?

1.Customer classification strategy
 Retail(b2c), corporate/institutional(b2b), key account(one providing
more consumers)Focus…….key> corporate>retail
 High Value, Mid V, Low V (based on income/past sales)
High- top ticket ,mid – mid ticket…….

2.Customer relationship strategy

 Transactional (RC, LV)
 Value-added (Corporate, MV)
 Collaborative ( KA, HV)
 Sales Strategy
3. Selling methods
 Stimulus-response method – small b2c ;no much involvement required as they
do visit once/twice a yr ………
 FAB approach – knowing about customers not market research
 Consultative selling – s/w packages selling
Oracle selling p/s to railways ……..railways are huge

4. Marketing channel strategy(to build gap-time b/w …)

(1)Personal selling through the company salespeople, (2) Distributors,
dealers, wholesalers, or retailers, (3) Telemarketing, (4) brokers and
commission agents, (5) Internet
Key account can be institutional but It depends on how many
customers they will give to u – even if don’t make much revenue still
we can use there name in reference and get revenue from others

Either connection or money …….we can count them as key accounts

All these classifications are only to us(my assumption for my

company)
Our retail customers maybe insinuations to others and vice versa
Same happens with collaborative too

Relationship (with them) is directly proportional to the effects we do

How we can classify it with automobiles sector
where ticket size is same for everyone
Who buys same brand more frequent
 Forecasting Approaches

• Two basic approaches:

• Top-down or Break-down approach
• Bottom-up or Build-up approach
• Which is a better approach?
• Some companies use both approaches to increase their
confidence in the forecast
 Popular methods of forecasting
Qualitative methods

Expert opinion Survey of buyer’s Sales force Delphi

expectation composite technique

History analogy

Quantitative methods

Test marketing Naive method Trend method

Moving average Regression method Exponential

smoothening
 What is a Sales Budget?

• It includes estimates of sales volume and selling expenses

• Sales volume budget is derived from the company sales forecast

– generally slightly lower than the company sales forecast, to
avoid excessive risks

• Selling expenses budget consists of personal selling expenses

budget and sales administration expenses budget
Methods Used for Deciding Sales Expenditure
Budget

• Percentage of sales method

• Executive judgment method
• Objective and task method