Sales planning
step by step

Sales is a very important part of any company's business. Without it, no production would make sense. The key to effective sales is proper preparation. What should a comprehensive sales planning step by step? And what elements sales strategies should be included?

What will you learn from the article?

In today's fast-changing business world, where competition never sleeps, a key element of any company's success is effective sales strategy. Sales planning is no longer a matter of choice, but a necessity to not only increase sales, but also to keep the company stable and growing in the long term. In this blog post we will look at the different methods of sales planningthe elements that every sales strategy and ways to estimate sales.

We will also provide examples of successful activities that can inspire you to create your own sales strategiesThe following pages will show you how to plan and execute your business with precision. As you read on, you will discover how to accurately plan and execute sales strategythat not only responds to current market needs, but also ensures that your company has a strong position in the market.

What are the sales planning methods?

Sales planning is a kind of preparation for effective business. This process determines the steps a company should take to achieve certain goals, facilitates important decisions leading to the implementation of the established market, marketing and promotional strategy. 

Complex sales planning brings benefits on many levels. First and foremost, it leads to optimum utilisation of the company's resources and, consequently, reduces production costs. The company does not produce "just in case", it rationally allocates its resources and does not expose itself to unnecessary losses. Sales planning reduces stock levels, which translates into lower warehousing costs. In addition, it increases the availability of goods at specific points of use, shops and other points. 

Sales planning is the basis for effective operations. It enables the company to know what to expect from the market, to react quickly to any changes and to rapidly implement appropriate solutions to ensure smooth sales. Sales planning should be part of strategic management in the enterprise. This process translates into the improvement of many processes, which maximizes the company's efficiency and ensures its stable position on the market. 

What elements should a sales strategy include?

The first and at the same time the most important stage sales planning is to define and analyse the target group. The better, more detailed we identify and define our audience, the more effective our sales activities can be.

At this stage, it is worth remembering about customer segmentation, i.e. dividing them according to specific categories - preferences, needs, expectations regarding goods and products and belonging to a specific social group.

Customer segmentation will facilitate effective management of the sales process. It will indicate what steps to take to reach a specific target group, as well as what tools and elements of the sales message to use to be successful.

In the process sales planning it is important to identify the unique characteristics of the product, the brand attributes and other elements that differentiate it from the competition. The values of the product or brand reinforce the sales language and, in doing so, facilitate the achievement of sales targets. 

An important step sales planning is to choose the right pricing strategy. Pricing strategy is the determination of the value of the products or services offered in order to maximize profits and generate high market share. In order to accurately define your pricing strategy, you should consider:

• costs of manufacturing or purchasing the product,
• current market situation,
• price trends on the market, i.e. the prices of competitive products,
• demand,
• economic conditions,
• actions and competitiveness of market rivals.

The most commonly used strategies include:

• skimming, i.e. collecting cream - setting inflated prices to emphasize the exclusivity of the product,
• market penetration - offering very low prices in order to maximize profits and gain a large market share,
• imitation - offering prices similar to those of competing products.

Sales development strategy is also a detailed analysis of the competition, including continuous identification of the company's position in the industry in relation to market rivals. In a competitive analysis, it is worth taking into account the marketing strategies used, the market shares held, the product distribution channels used and customer feedback. The data obtained in the study is the basis for identifying the company's strengths and weaknesses, which helps to strategically sales planning.

Integration of the sales plan with the marketing plan

Effective sales planning requires close cooperation between the sales and marketing departments. The integration of these areas allows for consistent activities that increase the efficiency of both teams. For example, when sales strategy is synchronised with marketing campaigns, the company can better reach potential customers and respond to their needs more effectively. Joint goal-setting and regular communication between departments enable the creation of consistent messages and offers, which is key in the process of sales growth planning.

Monitoring and evaluation of sales performance

Regular performance monitoring is integral to effective sales planning. The analysis of sales data makes it possible to continuously assess the effectiveness of the adopted sales strategies and identify areas for improvement. The use of appropriate analytical tools enables the tracking of key performance indicators (KPIs), which supports the programme sales planning. This enables the company to react quickly to changing market conditions and adapt its operations to achieve its objectives.

Sales planning – what else to take into account?

In the process sales planning is also worth considering:

• macroeconomic and political trends - how the current economic / political situation may affect the functioning of the company,
• seasonality of sales - changes in value and customer needs depending on specific factors, i.e. season, crises,
• analysis of existing sales activities,
• the size of the sales team,
• evaluation of the sales team's potential,
• specific sales goals. 

How to estimate sales?

Sales planning It makes sense to start by determining the annual sales figure. Then divide the figure by 12 months and estimate whether, with the current number of employees, goodwill, resources and marketing support in place, the plan is achievable.

It is good practice to leave about a 10 percent margin of error. It is better to set a slightly lower sales target and achieve it without any problems than to expose the company to unnecessary financial losses and other problems.

Of key importance in sales planning has a human factor. It is the employees who largely determine the productivity and efficiency of a company. Every employer must provide the right conditions for employees to develop and acquire new competences. Moreover, it should offer them favourable employment conditions, nurture a good working atmosphere and motivate them to act. Such actions undoubtedly  will increase employee productivity.

Sales planning and strategy is also to establish KPIs, or key performance indicators, to measure the results of the activities carried out. KPIs it is worth defining individually for each trader, depending on his seniority and capabilities. 

Sales strategy examples of effective actions

Management sales strategyy is a key element in the success of any business. Nowadays, competition is increasing, so you need to be innovative and proactive . There are a number of effective actions that any company can take to increase its revenue. One way is to use data analytics. Analysing data allows you to understand which products or services are most popular, so you can tailor your offering to meet the needs of your customers.

Another idea is to optimise the sales process. For example, lead times can be reduced, which helps to increase customer satisfaction and speed up business processes. The application of these and other sales strategies is crucial to the success of any company and should be the basis for planning activities for the years ahead.

What is essential to the success of the company's growth strategy?

Nowadays, where the competition on the market is increasing, an effective sales strategy is crucial for the company's development. It is not only a matter of sales skills, but also the level of involvement in the process. Therefore, in order to effectively manage a company, it is necessary to develop a solid sales strategy that will attract new customers as well as maintain the loyalty of existing ones.

Building sales strategies is a process. It requires a defined action plan. In order to achieve the desired sales results, customer acquisition procedures need to be developed, thereby improving the sales funnel. By implementing the right strategy, the company contributes to business development and creates the opportunity to attract potential customers even more effectively.

Creating an effective sales plan is key for any business that wants to achieve the best results sales planning and continuously develop your business. An effective sales plan allows you to understand and anticipate the needs of the market and adapt your company's strategies accordingly. All of this is essential to remain competitive and achieve financial targets. In practice, every company needs a sales plan. It needs to be well-thought-out, realistic and flexible, allowing it to respond quickly to market changes. Developing such a plan requires an understanding of customer needs and expectations. It also requires an analysis of market data and industry trends, which forms the basis for planning effective promotional and sales activities.

Therefore, investing in creating an effective sales plan is an investment in the future of the company. It opens the way to achieving better sales results and building a lasting competitive advantage on the market.