Chapter 6

Sales planning

Prof. Sunitha Ratnakaram, Associate Professor, VVSB

MBA, M. Phil, MFM, M. SC. (Psychology),

UGC JRF, (Ph. D)

In this chapter we will discuss:

The importance of sales planning Sales manager as planner and administrator The sales planning process Causes of unsuccessful sales planning Accuracy of sales planning

Introduction
What for planning? What does sales planning do? What a sales plan is? What is planning process?

The importance of sales planning

1.
2.

3.
4. 5. 6.

7.

Better implementation of corporate plans Provide a sense of direction Focus on realistic objectives Improve coordination Facilitate control Ensure healthy interpersonal relationships Reduce uncertainty and risk

Sales manager as planner and administrator

Transformation in the role of sales manager from aggressive selling person to planner & administrator who require more of human and conceptual skills Differences between selling and managing What organization expects from sales managers?

Sales manager as planner

i.
ii. iii. iv. v.

Sales forecasting Developing objectives Developing the sales organization Formulating policies and procedures Preparing the budget

Sales manager as administrator

i.
ii. iii. iv. v. vi.

Supervision Delegation Coordination Motivation Ethical approach Routing, scheduling, staffing & training

The sales planning process

Setting objectives

Internal situation analysis External environment audit

Determining operations to meet objectives

Build, Hold, Harvest, Divest

Organizing for action Implementing

Developing strategies coaching

Measuring results against standards Revaluating & control

Causes of unsuccessful sales planning

1.

2.
3. 4.

Lack of awareness or understanding of important aspects Absence of proper planning Lack of systematic communication Absence of sales force involvement

Accuracy of sales planning

Accuracy is of utmost importance and it depends on time frame Plans are more accurate when the gap between the plan & its implementation is shorter Organizations that have higher rate of profits tend to have less plan accuracy as they are too optimistic

Continued
Large

organizations are more accurate than smaller ones Top management involvement increases accuracy Bottom up approach is more accurate than top down Extent of communication of planning elements also influences accuracy