N5 Sales Management 2.1.1


History ........................................................................................................................................................................................19


2.1.2 Sales philosophy of the business (slogan) ................................................................................................19 2.1.3 Production processes and methods................................................................................................................19 2.1.4 2.1.5


Distribution policy ..........................................................................................................................................................19 Price policy ............................................................................................................................................................................20


2.1.6 Financial and credit policy .....................................................................................................................................20 2.1.7 Promotion and advertising ...................................................................................................................................20


2.2 The industry ..............................................................................................................................................................................................21 2.3 Competitors ................................................................................................................................................................................................21


3. Product knowledge ..........................................................................................................................................................................................21 3.1 Physical characteristics ...................................................................................................................................................................22 3.2 Product ranges ........................................................................................................................................................................................22 3.3 Product support......................................................................................................................................................................................23 3.4 Production methods and processes ....................................................................................................................................23 3.5 Product uses ...............................................................................................................................................................................................23 4. Sources of information ................................................................................................................................................................................24


Module 3 – Sales forecasting 1. The importance of forecasting ..............................................................................................................................................................26 2. Demand estimation and potential .....................................................................................................................................................27 2.1 Market potential ....................................................................................................................................................................................27 2.2 Sales potential (market share) .................................................................................................................................................27 2.3 Geographical potential ....................................................................................................................................................................27


3. Factors influencing probable sales volume ..............................................................................................................................27 3.1 Conditions within the business ...............................................................................................................................................27 3.2 Conditions within the industry ...............................................................................................................................................27 3.3 Changed market conditions ........................................................................................................................................................28 3.4 General business conditions ......................................................................................................................................................28


4. The sales forecast and the marketing plan ...............................................................................................................................28 5. Methods of sales forecasting ...................................................................................................................................................................29 5.1 Jury of executive opinion ..............................................................................................................................................................29 5.2 Delphi technique ...................................................................................................................................................................................29 5.3 Sales force composite ........................................................................................................................................................................30 5.4 Time series analysis ...........................................................................................................................................................................30 5.5 Users’ expectations ..............................................................................................................................................................................31 5.6 Indicators .....................................................................................................................................................................................................31 6. Factors influencing the selection of forecasting methods ..........................................................................................32


Module 4 – Sales territories 1. Benefits derived from establishing specific territories .................................................................................................34 1.1 Ensure proper market coverage.............................................................................................................................................34 1.2 Workload equalisation ....................................................................................................................................................................34 1.3 Increases salespeople’s morale ................................................................................................................................................34 1.4 Better evaluation and control over sales force ........................................................................................................34 1.5 Better analysis and planning of sales activities .......................................................................................................35 1.6 Sales are improved ..............................................................................................................................................................................35 1.7 Reduce conflicts and disputes ..................................................................................................................................................35 1.8 Improves/strengthens customer relations....................................................................................................................35 1.9 Reducing selling costs .......................................................................................................................................................................35 1.10 Better co-ordination between selling and other marketing activities ...............................................35


2. The design/setting up of sales territories ....................................................................................................................................35 2.1 Select a geographical control unit ........................................................................................................................................36


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