Sales strategies in market

 Without sales, there is no business, no matter how well production, marketing research, and other functions are handled. Your business plan must explain in detail how you will sell 
your product or service. The description of the selling process should cover two aspects: 
selling methods and serving the sellers.

Selling Methods Executives must first address the question of exactly how their product or
service will be sold  the distribution channels and methods. For example, will you sell 
through independent distributors?

If so, what kind? 

If you plan to use the company’s own sales force,how many salespeople will it take to achieve your sales goals? What is your expected sales efficiency (that is, how many sales calls will it take to get one order, on average)? 

How large will the average order be?

How will the customer pay for it — on receipt or some time after being billed?


Answering these questions will lay the groundwork for determining your selling costs and 
will help you prepare a sales plan. The sales plan is a key component in the determination of 
how much financing you require. If you elect to use sales agents or distributors for your 
product, you will have to include sales commissions or distributor sales discounts in your 
planning. In the latter case, you should also indicate how you will identify distributors.
 
Your business plan should also address international sales, if appropriate. If there is a 
market for your product outside the United States, do you plan to sell to this market? If so,
you should explain how you will reach it. Do you plan to use foreign agents and distributors, 
or will you set up your own organization? Many services to help companies new to the export market are available through the Department of Commerce, whose field officers are located
in most major cities. Customs brokers and freight forwarders can often supply import and
 export services that would be too costly to provide in house before your company is large 
enough to support them.
 
Executives should pay close attention to selling costs, determining what is appropriate for  their particular operation. One way to establish an appropriate range is to look at the 
financial statements of publicly held competitors, analyze their selling-cost percentages, and
compare them with your own.


For some businesses, the costs associated with sales may be 10 % of revenues, but for others  they may be as much as 30%. Keeping selling costs at or below the level appropriate for a  particular industry has become increasingly difficult, and many companies have explored  alternatives to the traditional in-house sales force. There is increasing reliance on direct 
mail,telemarketing, the Internet, and seminars to sell products and services.

Serving the Sellers However you sell your product or service, those doing the selling need 
help. An in-house sales force needs training, descriptive materials, and other selling aids.
Manufacturer’s representatives need these plus demonstration models. Telemarketers need
training and approved answers to commonly asked questions and objections.

Perhaps most important, everyone involved in selling needs incentives. The incentives must be properly structured and clearly explained if they are to be effective. They can consist of 
both monetary awards and nonmonetary inducements. If the incentive packages are not 
clearly defined or are weighted too heavily toward the company, your sellers will not be at 
their most effective. Selling is one of the most difficult tasks in business, and the work can be
very demoralizing without the proper incentives. The business plan must spell out in
convincing detail the nature of the support program and exactly what will make it succeed as 
expected.Although your written business plan will not go into the level of detail discussed 
above,your financial projections will need to carefully take into account the details of your 
marketing plan and your expected sales activity. You will need to assure potential investors 
that there is an adequate return on the marketing investments that you are making. 

In addition, as your think about your human capital needs you will want a clear picture of 
your marketing and sales efforts.