Posted in Marketing and Strategy Terms, Total Reads: 1046
Definition: Sales Strategy
Sales Strategy sets out a detailed plan on how to get the product and service in front of the right people who need it. Strategically it is comprehensive and methodological approach in order to ensure that business is marketed correctly and we are approaching the right client. Sales strategy is based on business plans and marketing strategy.
It is an operating plan for the company’s sales force. Sales strategy is important in allocating sales resources efficiently in driving selling costs down and marking up the revenues. Sales strategy is closely linked to corporate strategy. A sales strategy has a life cycle similar to an industry, company or a product.
There are generally two types of sales strategies which are employed by a business: direct or indirect.
• Direct Sales Strategy - In a direct sales strategy, sales people while talking to the consumer attack their competitors head on. They try to compare each feature of the competitor’s product and compare it to theirs. The term direct sales approach also refers to ‘negative selling’.
• Indirect Sales Strategy - In other words indirect sales approaches are more subtle in nature and are implemented by demonstrating features and benefits that are not available with the competitor’s products or services without ever mentioning about any competitor’s products. This technique is more sophisticated
Sales Strategy focuses on the following –
• Identifying Markets – Market identification based on age, gender, demographics, income etc is important part of sales strategy
• Competition analysis - Understanding the market scenario, studying competitor activities etc are essential
• Understanding trends – Consumer preferences, seasonality, historical trends etc are essential for a good sales strategy
• Better management of sales - Sales strategy involves better management of workforce, resources etc
This is a high level process flow diagram for a Sales Strategy