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Sales Strategy

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 Major Quantified Sales objectives

 Overall objectives Split down by

1 Total annual volume of products > A Quarter, month and weeks

 2 Total annual value of products > B Product line

 3 Total annual selling costs > C Region and sales area

 4 Total annual profit contribution > D Type of customer

This reveals some of the strategies to be employed. For example, overall sales revenue objectives might be reached by concentrating on particular areas or on particular types of customers with particular product lines. 

Aspects to determine its relative effectiveness and helps to form a basis for improvement

 

 Sales Force

 3 Structures of Sales force

Territorial Structures Each member has an exclusive territory and is expected to represent the company's full product line

 Product Structured Responsibility for a particular product/product line to sell across a wider geographic area (technically complex/specialised buyer's needs)

Market Structured Concentrate upon specific types of end user, e.g. computer firms; many sell to banks, industry etc. (computer firm IBM practises this)

3 Types of Sales force

  1. Order getters (prospecting)
  2. Order takers (repeat orders)
  3. Support personnel (facilitate)

 Hard sell versus Soft sell strategies

Hard Sell

Soft Sell

Concern for self

  • Concern for customer

Canned presentation

  • Questions for discussion

Talking

  • Listening

Pushing product

  • Providing buying opportunities

Presenting features

  • Presenting benefits

Advocating without acknowledging

  • Acknowledging needs

Sales force remuneration options There are five basic forms of this. The chosen method is to some extent conditioned by custom and practice in the sale setting concerned. Evaluation can take place considering the advantages and disadvantages. It is clear that different companies see particular benefits in the various methods. This may well be due to considerations of image and product positioning and whether a hard sell o soft sell approach is being adopted. Depending on the remuneration method used can sometimes determine if either hard or soft sell is used.

Sales force remuneration options

1) Salary only

2) Commission only

3) Salary plus commission

4) Salary plus bonus

5) Salary plus commission plus bonus

 If commission is only offered hard selling tactics will be generally used to gain personal income for the sales person. If salary only is offered, soft sell tactics will generally to employed, as the sales force are guaranteed income

Management of the Sales force 

Establishing Sales force objectives

Compensating Sales people

(Compensation plan should:)

Motivating Sales people

(To obtain high productivity)

Managing Sales territories

(Creating sales territories)

 Evaluating the Sales force

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