Scribd
Upload
16 views3 pages

Chapter Two-Sales Management

Chapter Two discusses the significance of corporate planning and sales planning in organizations. Corporate planning focuses on establishing long-term goals, improving decision-making, and measuring success, while sales planning outlines strategies to achieve sales objectives and ensure effective market penetration. Both processes emphasize the need for structured approaches to enhance organizational efficiency and effectiveness.

Uploaded by

Belay Adamu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
16 views3 pages

Chapter Two-Sales Management

Chapter Two discusses the significance of corporate planning and sales planning in organizations. Corporate planning focuses on establishing long-term goals, improving decision-making, and measuring success, while sales planning outlines strategies to achieve sales objectives and ensure effective market penetration. Both processes emphasize the need for structured approaches to enhance organizational efficiency and effectiveness.

Uploaded by

Belay Adamu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Chapter Two

Building Relationships through Strategic Planning


2.1. Corporate Planning

Corporate Planning is defined as forming long-term goals and objectives within the
organization’s strengths and weaknesses in the existing and prospective environment. Corporate
planning includes the setting of objectives, and organizing the work, people and systems to
enable those objectives to be achieved. It is the determination of business goals, formulation of
diverse strategies for attaining objectives, transforming the goals into tactical plans,
implementing and reviewing it to find out the progress of strategies, and finding out
loopholes/gap.

Importance of Strategic Corporate Planning


The importance of corporate planning can be justified because some companies even hire
departmental corporate managers to check the industry’s current scenario and the current status
of the organization in the market. Some of the points that describe the need and importance of
corporate planning are mentioned below:
1. Long-term goals
Corporate Planning broadly focuses on long-term goals and sets a blueprint to achieve them in a
stipulated period. Long-term goals help an organization keep its core focus on maintaining its
efforts, workforce, and efforts on a pre-decided target. Corporate Planning keeps the employees
engaged in their respective tasks with deadlines and ensures effectiveness and efficiency. It also
brings harmony, peace, and cooperation among the employees and supervisors in a firm as they
all smoothly work towards a common objective.
2. Focus
A strategic business plan helps a business organization provide a focal point not to get deviated
or distracted from its end goal. The first and foremost step of corporate planning involves
devising a mission statement that tells the world its roles and objectives. Formulation of a
mission statement aids the firm stick to its focus, do all the requisite tasks, assign responsibilities
to the employees, and evaluate their work to achieve that final destination.
3. Better Decisions
Developing a strategic plan helps a company make better decisions that are beneficial and
helpful in attaining the mission statement. A corporate plan should be structured to spell all the
information in the organization’s interest, like the skills required with the employees, machinery
or equipment required, etc. Forming a roadmap to achieve the final goal helps the business
people hire the best personnel for their form, arrange funds according to the tasks, and further
invest in the most viable propositions.
4. A Measure of Success
Corporate planning also acts as a yardstick to determine an organization’s success in achieving
its goals. A firm shall periodically analyze its work to check its progress and make further

1|Page
amendments like replacing personnel, hiring more employees, arranging more funds, upgrading
the machinery, etc.
Finding, evaluating, and analyzing the loopholes periodically that block the ways of achieving
the mission statement helps in the up gradation of the work and ensure efficiency and
effectiveness of the tasks devised. The touchstone function of corporate planning works best in
the organizations that devise plans that allow for changes in attaining the tasks.
5. Saves money
The extra benefit associated with corporate planning is that it forms budgets that help save
substantial sums. Budgeting allows a firm to allocate its financial resources to the projects that
require it the most by cutting out unimportant expenses. Having a detailed budget tells how much
cash is earned, spent, or lent. This wipes out confusion regarding the amount of money allocated
to different projects.
2.2. Sales Plan
Any business is all about sales. Whether a company practices B2B or B2C, the main goal is to
receive revenue. Only a steady approach with a defined sales plan can guarantee a successful
outcome. A strategic sales plan is the map for business processes related to trading, dealing with
customers, and organizing sales operations. A sales plan is a business plan that features the
development of the company’s sales activity with set objectives within a particular time frame.
In other words, it’s a strategic plan where one specifies sales goals, tactics, challenges, target
market and steps you will take to execute the plan. Setting goals and time frame to achieve them
isn’t the only aim. Give the same importance to working out tactics and a precise sales strategy.
This part includes analyzing all the resources, deciding on the amount to use, and describing the
specific activities.
Sales Planning Process
The sales planning process is very important for an organization as success cannot be achieved
by haphazard actions. Sales planning process is usually done in the second stage of planning and
can be carried out only when the company has a strategic marketing plan in place.
The first thing that an organization does is make a strategic marketing plan. Once the strategic
marketing plan is made, the organization knows the segment that has to be targeted, and also, the
consumer buying behavior for that segment. Accordingly sales planning are done.
1) Setting Sales Process objectives
Your sales planning is going to start only when you have defined the objectives for the sales
team. For example – The objective of an air conditioning company might be to increase the
market share of the company. For this, it will have to penetrate a new geographic market. Thus
the objective of sales planning is to penetrate a new market to increase market share.
2) Determine the actions necessary
Once you know the objectives of your sales plan, you have to forecast what actions you need to
take and the operations which are needed in effect before you implement the sales planning. This
is a crucial step in the sales plan process because if you do not forecast the correct operations
strategy, then in future you will face operational difficulties which will hamper you in meeting
your sales objectives and plan.
2|Page
For example – The air conditioning company needs to penetrate a new geographic territory to
increase market share. Thus it needs Sales as well as service operation backup in this territory.
The marketing department should also know the new territory so that they can come up with
aggressive marketing tactics to target that territory.
3) Organize your actions
Coming back to the first point – haphazard actions will never bring results. Once you know the
operations that are necessary, you need to organize your sale planning. For example – The first
priority of the air conditioning company in new territory will be to have a service setup. Than to
have a sales plan with setup and the necessary channel in place. Once that happens, they will
have to bombard the new territory with aggressive marketing tactics. Thus an organized action
plan needs to be made during the sale planning process.
4) Implement the Plan
Once you have your actions planned and organized, implementing them is the next step.
Although it may sound easy, there are many real time and real world problems you may face
while implementing a sales plan. For example – The customers of the new territory might not
respond to the new air conditioners entering the market. On the other hand, the product might be
picked up readily by the customers and you might not be able to adapt with the unexpected
demand which can make your brand lose face from the start.
5) Measure results from your sales plan
As in any planning process, the fifth and very important step in the sales planning process is to
measure the results. Unlike advertising, sales results are very easy to measure because everything
is documented and recorded. For example – the air conditioning company will measure the total
sales plan of the geographic territory in study. At the same time it will find out the competitors
sales as well for record keeping.
6) Revaluate Plan
When you have the sales records in hand, ensure that you analyse the sales records to know
whether or not the sales planning process has succeeded. The analysis will tell you what you did
right and what went wrong. Thus, based on the analysis you can know the good work that has to
be repeated as well as the bad work which has to be avoided.
For example: Your sales report shows that you have succeeded in penetrating the new
geographic territory. This stage will help you set your objectives for the next year and you will
plan increasing your brand equity through quality of sales and service. If on the other hand, you
have failed to penetrate the market, then you need to study the reasons which caused the failure
and in the next year, sales planning should be done taking these negative results into account and
the sales objectives should be re planned.

3|Page

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy