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Sales Management Ashwani Panesar, Lovely Professional University

Notes Unit 4: Sales Strategy Formulation

CONTENTS
Objectives
Introduction
4.1 Market Analysis (Step I)

4.2 Setting Sales Objectives (Step II)
4.3 Designing Sales Strategy (Step III)
4.4 Types of Sales Force Needed

4.5 Basis for Territory Design
4.6 Channel Support and Coordination
4.7 Transaction Cost Analysis
4.8 Determining the Size of the Sales Force
4.8.1 Incremental Method

4.8.2 Sales Potential Method
4.8.3 Work Load Method
4.9 Determining the Kind of Sales Personnel

4.10 Summary
4.11 Keywords
4.12 Review Questions
4.13 Further Readings

Objectives

After studying this unit, you will be able to:

 State the market analysis;
 Discuss the basis for territory design;
 Describe the setting sales objectives.

Introduction

Sales strategy is the game plan adopted to achieve the desired objectives. It helps a company to
reach a desired position from the existing position.
Sales strategies are adopted to achieve the desired objectives in sales. The objectives may be
many in number and these require elaborate and careful consideration of the strategies and
game plans of other competitive organisations. Sales strategy is different from marketing strategy
in that marketing strategy involves identifying the target segment and directing the marketing
mix on the target segment to achieve the objectives and fight competition while sales strategy is
involved with pushing the sales of products. It basically involves three steps:

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