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Learner Guide

BSBSLS501

Develop a Sales Plan

This leader guide is a copyright of RTO Materials.

Table of Contents

Unit of Competency …………………………………………………………………………………………………………. 5

Application …………………………………………………………………………………………………………………………. 5

Performance Criteria …………………………………………………………………………………………………………….. 6

Foundation Skills …………………………………………………………………………………………………………………. 7

Assessment Requirements ……………………………………………………………………………………………………… 8

1. Identify organisational strategic direction …………………………………………………………………………. 9

1.1 – Obtain and analyse assessment of market needs and strategic planning documents ……………………. 10

Strategic direction of the organisation ……………………………………………………………………………………. 10

Business plan……………………………………………………………………………………………………………………… 10

Marketing plan …………………………………………………………………………………………………………………… 11

Gathering information about the market ………………………………………………………………………………… 12

1.2 – Review previous sales performance and successful approaches to identify factors affecting

performance ………………………………………………………………………………………………………………………….. 14

Previous sales performance ………………………………………………………………………………………………….. 14

Factors affecting performance ………………………………………………………………………………………………. 15

1.3 – Analyse information on market needs, new opportunities, customer profiles and requirements as a

basis for decision making ………………………………………………………………………………………………………… 17

Market segmentation …………………………………………………………………………………………………………… 17

New opportunities ……………………………………………………………………………………………………………… 18

Identifying consumer attributes …………………………………………………………………………………………….. 18

How to gather data ……………………………………………………………………………………………………………… 18

Examples of attributes…………………………………………………………………………………………………………. 19

2. Establish performance targets ………………………………………………………………………………………. 21

2.1 – Determine practical and achievable sales targets…………………………………………………………………… 22

Determining sales targets ……………………………………………………………………………………………………… 22

Estimating potential revenue ………………………………………………………………………………………………… 22

2.2 – Establish realistic time lines for achieving targets …………………………………………………………………. 24

Time lines for achieving targets …………………………………………………………………………………………….. 24

Multiple time lines ………………………………………………………………………………………………………………. 24

Considering times of year …………………………………………………………………………………………………….. 25

2.3 – Determine measures to allow for monitoring of performance ………………………………………………… 26

Measures for monitoring performance …………………………………………………………………………………… 26

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Customer/client based feedback …………………………………………………………………………………………… 26

2.4 – Ensure objectives of the sales plan and style of the campaign are consistent with organisational

strategic objectives and corporate image …………………………………………………………………………………….. 28

Planning sales operations……………………………………………………………………………………………………… 28

Establishing business objectives ……………………………………………………………………………………………. 28

Ensuring style is in line with corporate image ………………………………………………………………………….. 29

3. Develop a sales plan for a product …………………………………………………………………………………. 30

3.1 – Determine approaches to be used to meet sales objectives …………………………………………………….. 31

Sales approaches to meet objectives ………………………………………………………………………………………. 31

Client centred approach ………………………………………………………………………………………………………. 31

Increasing average spend ……………………………………………………………………………………………………… 32

Attracting new customers …………………………………………………………………………………………………….. 33

3.2 – Identify additional expertise requirements and allocate budgetary resources accordingly …………….. 34

Expertise requirements ………………………………………………………………………………………………………… 34

Budgetary resources ……………………………………………………………………………………………………………. 34

3.3 – Identify risks and develop risk controls ………………………………………………………………………………. 35

Identifying risks ………………………………………………………………………………………………………………….. 35

Developing a contingency plan/risk controls ………………………………………………………………………….. 35

3.4 – Develop advertising and promotional strategy for product ……………………………………………………. 37

Developing advertising and promotional strategy …………………………………………………………………….. 37

Types of promotions …………………………………………………………………………………………………………… 38

Using displays and stands …………………………………………………………………………………………………….. 38

3.5 – Identify appropriate distribution channels for product ………………………………………………………….. 40

Product distribution channels ……………………………………………………………………………………………….. 40

Types of channels ………………………………………………………………………………………………………………. 41

3.6 – Prepare a budget for the sales plan …………………………………………………………………………………….. 42

Preparing a budget ……………………………………………………………………………………………………………… 42

Previous budgets ………………………………………………………………………………………………………………… 43

3.7 – Present documented sales plan to appropriate personnel for approval …………………………………….. 44

Proposals for resource requirements ……………………………………………………………………………………… 44

Approval for plan ……………………………………………………………………………………………………………….. 45

4. Identify support requirements ………………………………………………………………………………………. 46

4.1 – Identify and acquire staff resources to implement sales plan ………………………………………………….. 47

Identifying staff resources ……………………………………………………………………………………………………. 47

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Size of the sales team…………………………………………………………………………………………………………… 47

Acquiring staff …………………………………………………………………………………………………………………… 48

4.2 – Develop an appropriate selling approach ……………………………………………………………………………. 50

Developing a selling approach ………………………………………………………………………………………………. 50

4.3 – Train staff in the selling approach selected ………………………………………………………………………….. 51

Training staff ……………………………………………………………………………………………………………………… 51

4.4 – Develop and assess staff knowledge of product to be sold …………………………………………………….. 52

Knowledge of product details ……………………………………………………………………………………………….. 52

Sources of information ………………………………………………………………………………………………………… 52

Assessing knowledge …………………………………………………………………………………………………………… 53

5. Monitor and review sales plan ……………………………………………………………………………………….. 54

5.1 – Monitor implementation of the sales plan …………………………………………………………………………… 55

Monitoring implementation ………………………………………………………………………………………………….. 55

Observing response to products ……………………………………………………………………………………………. 55

5.2 – Record data measuring performance versus sales targets ……………………………………………………….. 57

Recording data …………………………………………………………………………………………………………………… 57

5.3 – Make adjustments to sales plan as required to ensure required results are obtained ……………………. 58

Adjusting the sales plan ……………………………………………………………………………………………………….. 58

Providing feedback to employees ………………………………………………………………………………………….. 58

Summative Assessments ………………………………………………………………………………………………………….. 60

References…………………………………………………………………………………………………………………………….. 61

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Unit of Competency

Application

This unit describes the skills and knowledge required to develop a sales plan for a product or service for a

team covering a specified sales territory based on strategic objectives and in accordance with established

performance targets.

It applies to individuals working in a supervisory or managerial sales role who develop a sales plan for a

product or

service.

No licensing, legislative or certification requirements apply to this unit at the time of publication

Unit Mapping Information

BSBSLS501A Develop a sales plan – equivalent unit

Unit Sector

Business Development – Sales

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Performance Criteria

Element
Elements describe the essential
outcomes.

Performance Criteria
Performance criteria describe the performance needed to demonstrate achievement
of the element.

1. Identify

organisational
strategic direction

1.1 Obtain and analyse assessment of market needs and strategic
planning

documents

1.2 Review previous sales performance and successful approaches
to identify factors affecting performance

1.3 Analyse information on market needs, new opportunities,
customer profiles and requirements as a basis for decision
making

2. Establish
performance targets

2.1 Determine practical and achievable sales targets
2.2 Establish realistic time lines for achieving targets
2.3 Determine measures to allow for monitoring of performance
2.4 Ensure objectives of the sales plan and style of the campaign

are consistent with organisational strategic objectives and
corporate image

3. Develop a sales

plan

for a

product

3.1 Determine approaches to be used to meet sales

objectives

3.2 Identify additional expertise requirements and allocate

budgetary resources accordingly
3.3 Identify risks and develop risk controls
3.4 Develop advertising and promotional strategy for product
3.5 Identify appropriate distribution channels for product
3.6 Prepare a budget for the sales plan
3.7 Present documented sales plan to appropriate personnel for

approval

4. Identify support
requirements

4.1 Identify and acquire staff resources to implement sales plan
4.2 Develop an appropriate selling approach
4.3 Train staff in the selling approach selected
4.4 Develop and assess staff knowledge of product to be

sold

5. Monitor and review
sales plan

5.1 Monitor implementation of the sales plan
5.2 Record data measuring performance versus sales targets
5.3 Make adjustments to sales plan as required to ensure required

results are

obtained

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Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are
required for competent performance.

Reading

 Analyses and interprets workplace documentation
 Recognises information in job specifications and work processes related to sales requirements.

Writing

 Accurately records information according to organisational requirements
 Composes and edits texts, selecting appropriate vocabulary and structure for audience and purpose.

Oral Communication

 Presents information to a range of audiences using appropriate structure and language
 Uses questioning and active listening to request feedback or to clarify or confirm understanding.

Numeracy

 Uses a wide range of mathematical calculations to enter or analyse information related to sales plans,
targets and performance.

Navigate the world of work

 Considers organisational goals when determining and developing sales plans and strategies.

Interact with others

 Identifies and uses appropriate conventions and protocols when communicating with a range of
personnel

 Demonstrates sophisticated control over oral, visual and/or written formats, drawing on a range of
communication practices to achieve training goals.

Get the work done

 Sequences and schedules complex activities, monitors implementation and manages relevant
communication

 Uses systematic, analytical processes in complex, non-routine situations, setting goals, designing
strategies, gathering relevant information and evaluating options

 Uses formal and informal processes to monitor implementation of solutions and reflect on outcomes
 Develops new and innovative ideas through exploration, analysis and critical thinking.

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Assessment Requirements

Performance Evidence

Evidence of the ability to:

 Analyse information from a range of sources to develop a sales plan for a product and sales territory
that meets organisational strategic direction including:
o resource requirements and budget
o achievable sales targets
o performance measures
o approaches to be used to meet objectives
o risk management
o advertising and promotional strategy
o product distribution channels

 Acquire staff, develop selling approach and provide training support on product knowledge and sales
approach

 Monitor and evaluate performance and adjust the plan as appropriate.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

 Outline principles and techniques for selling
 Outline methods for monitoring sales outcomes
 Explain the statistical techniques for analysing sales and market trends
 Outline internal and external sources of information that are relevant to identifying organisational

strategic direction and developing a product sales plan.

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent
performance of typical activities experienced in the business development – sales field of work and include
access to:

 Relevant workplace documentation and resources
 Case studies and, where possible, real situations
 Interaction with others.

Assessors must satisfy NVR/AQTF assessor requirements.

Links

Companion Volume implementation guides are found in VETNet –

https://vetnet.education.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10

https://vetnet.education.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10

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1. Identify organisational strategic direction

1.1. Obtain and analyse assessment of market needs and strategic planning documents

1.2. Review previous sales performance and successful approaches to identify factors affecting
performance

1.3. Analyse information on market needs, new opportunities, customer profiles and requirements as a
basis for decision making

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1.1 – Obtain and analyse assessment of market needs and strategic planning
documents

By the end of this chapter, the learner should be able to:

 Outline pieces of information that should be obtained from strategic planning documents

to help inform their sales approach

 Identify sources of information which they may be required to research in order to establish

market needs.

Strategic direction of the

organisation

When developing a sales plan for a product or service, it is vital to consider the wider strategic direction of

the organisation. The marketing and sales approach used should be in line with the wider goals and objectives

of the organisation, while taking finances and resources into account.

Prior to developing a sales plan for a particular product or service, it is good practice to carefully read

through your business plan and wider marketing plan. The business plan should outline the business mission,

vision, values and objectives, while the marketing plan should include a range of information in regards to

how products are and services are brought to market and the sales forecast and budget.

Business plan

Mission and vision

The mission statement briefly defines the purpose of the

organisation and the reason for its existence. It provides the

framework to help guide the company’s strategies. The vision

statement dictates the direction you want the company to move in.

The vision and mission statements ought to guide the everyday

activities of each person involved in the business. To be effective,

your statements need to be short and simple, capturing the essence of what you want to accomplish.

Goals

Goals are general statements of what you want to achieve. This means they need to be combined with your

vision. They also need to be integrated with your mission of how you are going to achieve your vision.

Examples of company goals are:

 To improve profitability

 To increase efficiency

 To capture a bigger market share

 To provide better customer service

 To improve employee training

 To reduce carbon emissions.

Goals should meet the following criteria:

 Suitable – does it fit with the company vision and mission?

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 Acceptable – does it correspond with the values of the company and employees?

 Understandable – is it stated in a simple manner?

 Flexible – can it be altered if needed?

Source: Creating A Mission Statement, Setting Goals And Developing Strategies,

http://rvcog.org/Creating%20a%20Mission%20Statement (access date:

20/07/2017).

Business objectives

In comparison to goals, objectives are precise, quantifiable, time-sensitive statements of what is going to be

achieved and when it will be achieved. They are signposts along the path of achieving your goals.

Examples of company objectives are:

 To earn at least a 15 percent after-tax rate of return

on our net investment during the next fiscal year

 To grow market share by 10 percent over the next

two years

 To reduce operating costs by 20 percent over the

next three years by improving the efficiency of the

manufacturing process

 To reduce the call-back time of customer inquiries and questions to no more than three

hours.

Marketing plan

A marketing plan is a document that most organisations should create which outlines the advertising and

marketing plans for the coming year. The marketing plan will usually be generated in accordance with or as

part of the overall business plan. While a business plan will state the overall direction and goals of the

business, the marketing plan often sets out how the goals of the organisation can be reached, such as

increasing market share and increasing customer loyalty.

Sections that may be contained within your marketing plan could include:

 Market research approaches – the methods required to gather information about the market

 Target customers – the customers that are targeted by the organisation, including their

wants and needs

 Unique selling point – establishing what sets apart your products and services to those that

are offered by other organisations

 Pricing strategies – the current prices for various items and offers or special deals

 Marketing materials – the means of promoting your business or products and services, such

as a website, catalogue, billboard,

etc.

 Conversion strategies – methods of converting potential customers into paying customers.

You will need to consider all of the above when planning your sales activities e.g. it is no good trying to sell

something using an expensive method if it won’t fit with your budget requirements.

http://rvcog.org/Creating%20a%20Mission%20Statement

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Gathering information about the market

Once you have a clear picture of the direction of the business and the current approaches used for bringing

products or services to market, it will be important to view the wider industry and establish current trends

and customer preferences.

Marketing responsibilities

The responsibility of recognising and satisfying the needs of customers while

meeting the objectives set out by the organisation is a crucial aspect of

marketing. Entire teams are often given the duty of conducting market analysis

so that a greater understanding can be built regarding the types of products or

services that should be brought to market and the quantity

required.

Recognising the market that a company exists in is not always straightforward.

The place of sale has altered substantially for many businesses with the increase

in online purchasing, which creates additional marketing requirements.

Additionally, many businesses attempt to diversify their product range and philosophy in order to reach a

wider target market. This has implications in terms of how promotional activities will take place.

When a new product or service is being launched, or a new or updated version of an existing item is being

introduced, a detailed picture should be built regarding the market that it will exist in. This should be

conducted in accordance with the organisational marketing plan.

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Types of information you might be required to research may include:

 The size of the market:

o volume – this states the total number of goods or services sold within a certain area

over a given period. it can be easier to comprehend for some people in comparison

to dealing with large amounts of revenue

o value – the total revenue of goods sold

 The market growth – percentage change in sales volume or value over a given period of

time

 Market share – the percentage of total sales in the market belonging to the business

 Customer tastes and preferences.

Further information on how to obtain this information will be looked at in the upcoming chapters.

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1.2 – Review previous sales performance and successful approaches to identify
factors affecting performance

By the end of this chapter, the learner should be able to:

 Outline types of financial information which they may need to gain access to in order to

review previous sales performance

 Highlight questions that could be asked to establish the performance of previous sales

events to help prepare them for future levels of demand

 Identify three different factors that could be used to assess the successfulness of previous

sales approaches.

Previous sales performance

One of the first steps that should be taken when considering sales approaches for new products or services is

looking back at previous marketing and sales campaigns to establish what worked well and what hindered

performance. Aspects that worked well can be adapted to the new product or service launches while aspects

that were deemed unsuccessful could be avoided or altered.

Reviewing your past sales performance will usually involve looking at financial results over a given period of

time. Monitoring performance, especially in terms of financial matters, is an extremely important aspect of

any business, no matter how large the company.

It is crucial to measure the following in relation to a particular
product or service:

 Revenue – the total income received by the business

for the product or service. Be careful to look out for

whether this is displayed as ‘net revenue’ i.e. excluding

things such as discounts or refunds, or ‘gross revenue’,

which can be described as the total value of goods or

services sold

 Costs – the finances that had to be spent by the

organisation in order to operate and maximise income

 Profitability – this is the income that is counted as ‘profit,’ after costs and other

expenditures have been deducted from overall revenue.

Accessing financial documents

The processes involved in accessing existing financial information are likely to be impacted by the role of the

employee and the location where such information is stored. Someone within the organisation may regularly

distribute operational and financial documents to all senior management figures or to the wider workforce,

for example through email or physical reports. Alternatively, this information could be stored in a central

location such as within a storage room or on the company’s computer system. When access to important

financial information is restricted, you should communicate the reasons why you require the documents to

the

appropriate personnel.

You may need to access the following financial information:

 Account summaries and balances

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 Bank statements

 Business activity statements

 Invoices

 Profit and loss statements.

Reviewing sales events

If an organisation sell its product or services at events, it should be possible to review sales figures from

previous events. This will involve accessing a report or sales summary that should have been completed at

the conclusion of the event.

Establishing the following could help prepare you for future levels of demand:

 How many goods or services were sold?

 What was the total value of sales?

 Was there enough stock present or was there an

excess?

 How many patrons were at the event?

 Were sufficient numbers of employees present to

meet consumer demands?

 How many people are expected at future events?

If you can answer these questions, then a much clearer picture can be built regarding what the needs of
people at future events.

Factors affecting performance

Once you have a range of figures in relation to how a product or service performed on the market, it will

then be necessary to establish why this was the case. Simply recognising that a product performed well

previously is not enough to conclude that a similar product would also be profitable; various factors could be

pertinent as to why a product or service performed well in the market at a given period in time.

Gaining performance information on particular product or service launches will involve analysing the above

financial sources and also reviewing any explanatory documents, such as sales reports and communications

between marketing personnel.

Factors affecting performance to analyse may include:

 Marketing of the

product or service

o advertising

o direct marketing

o distribution

o e-marketing

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o loyalty programs

o market research

o marketing communications

o pricing

o product development, including pre- and post-launch

o salesforce

 Consumer responses to marketing communications, such as:

o finding out the number of people who turned up to an event that was promoted

o establishing the quantity or value of goods or services sold following a promotion

o assessing the number of people who have entered a competition

o analysing previous customer feedback

o viewing the source of pay per click advertising

o reviewing sales data, including;

 if promotional codes have been used at the point of sale that were part of a

promotional campaign

 whether customers stated where they heard about the product or service

 Consumer digital footprints and engagement journeys

 Response to consumer demand, such as if demand could be met at all times

 Sales team responsible for launching and selling product or service:

o the size of the sales team

o the skillset and experience of team members.

When considering the approaches to be taken when selling a new product or service, incorporating your

findings from a range of the above will increase the likelihood of the sales process being a success.

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1.3 – Analyse information on market needs, new opportunities, customer
profiles and requirements as a basis for decision making

By the end of this chapter, the learner should be able to:

 Provide reasons why a company may conduct market segmentation

 Outline actions that could be taken to identify new opportunities

 Highlight sources of information that could be used to gain an understanding of customer

profiles

 Identify customer attributes which could be used to guide their sales plan.

Market segmentation

Businesses must gain as detailed a picture as possible about their potential customers. This information is

crucial in order to establish an effective pricing strategy and market items to maximise uptake.

Market segmentation is one method regularly applied by organisations to establish the types of customers

who will buy particular products and respond to certain promotions. This involves classifying customers or

potential customers into categories or sub-categories, where each one shares at least one common

characteristic. Customers placed into a certain market segment will usually respond to a marketing strategy or

promotion in a known way, different to other market segments.

Segmentation analysis, meanwhile, is where quantitative and qualitative data analysis is used to try and

establish the characteristics of consumers. This will be looked at in more detail in the following section.

Reasons for market segmentation may include:

 To increase market share by identifying segments which

have not been reached by other products or campaigns

 To assess the need for new

products

 To transfer existing products into new markets

 To find the most effective way of advertising a product or

service to reach the target group.

There are issues with market segmentation though, such as:

 Recognising the most distinct segment to market towards is not always obvious

 Knowing the most effective method to reach your target segment can be difficult, especially

when customer characteristics vary substantially

 Changes to preferences may take place among customers and they can quickly lose interest

products

 Focusing your marketing on particular segments can result in potential customers being lost

who also have an interest in your product or service.

Overcoming these problems will need to be discussed between marketing employees or with senior

managers.

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New opportunities

Use new technologies and media

Using new technologies and media to create selling opportunities is valuable in society today. More and more

people are using social media to advertise and sell products and services. To do this successfully, you will

need to be in the right place at the right time and this will involve maintaining a regular awareness of

technology and media trends.

Consider the following to identify new opportunities:

 Using Tweetdeck and Google alerts and set up

searches that pick up key phrases that you could use to

your advantage

 Join groups that you think have the right

qualities/profiles

 Follow organisations that you think could benefit

from your products or services

 Offer your opinions e.g. on related blogs to

demonstrate your knowledge and get your

organisation noticed

 Research the approaches being taken by competitors, including product or service choices,

pricing, branding, loyalty schemes, etc.

Identifying consumer attributes

There are a wide range of attributes that might distinguish consumers and result in them being separated into

separate market segments. Marketing is increasingly driven by the significant amounts of data that is created

through the internet, social media, and from interactions with existing clients. Information can be gained

regarding the behaviour of customers, including what they want and when they want it.

Knowing who your existing customers are and what they want will not help to improve their satisfaction and

make them more likely to return for further business, but it can support your marketing to entice new

customers and increase sales. You should try to find out about their opinions and preferences, as well as their

purchasing habits.

How to gather data

Market research reports

Market reports are often found freely available and can provide a useful starting point for analysing the types

of consumers in the market. They may offer information from a large dataset which you would struggle to

gather yourself through primary research. Reports can provide information about sales figures, customer

demographics, and current trends.

There should be a sense of caution when reading market research reports and applying the data to your

marketing activities. The data might not be applicable to your exact target market. For example, a report may

contain details about the sports drinks market, including customer preferences and their demographics.

However, there are many different types of sports drinks, and general information in relation to the whole

industry may not be accurate for a product your organisation is planning to introduce. Additionally, the

research may be out of date or could have been based on a particular locality.

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Customer surveys and feedback

Gaining feedback from customers should be something that is frequently performed in order to support

continuous improvement of all aspects of the business. As well as discovering opinions regarding your

advertising, products, and customer service, previous surveys that you have conducted will provide personal

details about your consumers.

Types of feedback may include:

 Personal interviews – conducted by an interviewer, who

asks questions and notes down the responses of the

interviewee

 Questionnaires – handing customers a list of questions for

them to complete within the store or in their own time

 Postal surveys – these are sent to the addresses of known

customers, but rely on a high response rate in order for the

data to be representative

 Telephone questioning – a higher response rate can be

gained when calling known customers to gain further

information about their needs and preferences, but can lead to customer resentment due to

the surge in telesales.

Competitions or promotions

Organisations often make the most of competitions in order to gather information about their customers.

Products might be offered as a prize or customers could be given a voucher if they are selected as the winner.

Not only can such competitions increase the awareness of the company, through word of mouth or social

media, but they could be designed so that customers or potential customers have to share a number of

personal details. These can then be analysed and considered alongside other sets of data to establish

consumer attributes.

Online users/accounts

Your website can act as a crucial platform for discovering information about consumers. If you sell goods

and services online, customers can be asked to create an account or fill in a variety of details before their

transaction is completed. All of this information can then be held in a centralised database. This provides you

with the opportunity to look at all customers at once and update their details when necessary.

Examples of attributes

Your organisational database may contain some of the following attributes regarding customers;

Age

Many organisations will segment customers and potential customers on the basis of age. Tastes and

preferences differ dramatically between different age groups. Take the example of clothing; some companies

will exist purely to target children, or people over the age of 60, while others will attempt to have multiple

campaigns and clothing lines to cater for more than one age group.

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Gender

Many products and services will be directed entirely at either males or females. Cosmetic products are for

example aimed at females, while computer gaming products are predominantly aimed at males. However, it is

important to recognise the potential in including the other gender and not overlooking potential customers.

Lifestyle

Data about the lifestyle choices of consumers can be gained from

their buying history and based on customer feedback. The pattern

of their spending can be analysed and predictions can be made

about how they will respond to new products or services.

Income

The income of potential customers will have implications on the

amount of money they can spend on your products or services.

High-end items will be aimed at particular people and advertised

using different methods to low and middle-end items.

Geographic

Tastes and preferences may differ depending on the geographic

location of consumers. The market could be segmented into cities,

states, regions, or countries if operating on an international scale. Divisions could also be made between

rural, suburban and urban areas, as the needs, wants, and cultural characteristics of consumers may be

different.

Generating geographic segments is relatively straightforward and can provide businesses with an opportunity

to solely target a particular area before launching elsewhere.

Frequency of purchase

Customers could be separated in relation to when they purchase items and how frequently they do so. For

example, some customers might like to purchase new products as soon as they are released, while others tend

to buy them later on. Consumers could also be segmented based on how often they visit the business

premises or use the website, as frequent purchasers could be targeted in different ways to occasional ones.

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2. Establish performance targets

2.1. Determine practical and achievable sales targets

2.2. Establish realistic time lines for achieving targets

2.3. Determine measures to allow for monitoring of performance

2.4. Ensure objectives of the sales plan and style of the campaign are consistent with organisational
strategic objectives and corporate image

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2.1 – Determine practical and achievable sales targets

By the end of this chapter, the learner should be able to:

 Outline actions which may be required in order to set practical and achievable sales targets

 Identify the crucial pieces of information required to estimate revenue when observing past

sales

figures.

Determining sales targets

During the process of developing a sales plan for products or services, it is crucial to establish a range of

targets and performance measures. This will not only influence the budget for the product or service, but will

also give the sales team something to strive for and compare performance with throughout the process.

Setting sales targets which are practical and achievable will require you to:

 Analyse past sales figures and performance

 Determine the resources available to market the

product

 Assess current market trends

 Identify economic growth rates

 Establish competitor activity

 View customer engagement rates, such as response

rates to social media followers.

Creating sales targets ought to take place in consultation with others in the organisation. Meetings could take

place where all of the above factors are taken into account and various different managers or sales personnel

can put their views across on targets and objectives. Allowing a number of people to contribute to the target

setting process should limit the chances of mistakes being made such as greatly over or under projecting sales

figures.

Targets might be set in a variety of formats, and this will depend on the type of products or services being

offered by the organisation.

For example, you might decide to set the following targets:

 Gross revenue – the total incoming revenue from the product or service

 Gross profit – the total revenue minus total cost of goods sold

 Gross profit margin – the gross profit as a percentage of

the gross revenue

 Volume – the total number of products or services sold

 Customer quantity – the number of customers to

purchase goods or use a service.

Estimating potential revenue

Estimations are not exact and are based on assumptions and projections, but can be useful to understand the

sort of potential revenue you could be looking at.

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To estimate revenue, you will have to find out:

 Average sale per customer (the average amount spent in a single transaction)

 The number of sales in a given time e.g. yearly

 The number of potential customers per year.

You may need to consult with colleagues such as colleagues in different departments, other sales colleagues

and managers. You will also need to discuss what your estimated expenses are. You will need to total up the

expenses involved and take it away from the revenue to get a more accurate picture of the potential profit.

To help you plan for all situations, you should work out:

 What is the best possible revenue you can achieve?

 What is the worst revenue outcome?

Considering both of these will help you to plan for how to respond to

actual sales rates. For examples, estimating your best possible revenue

outcome could then enable you to plan possible actions such as how

the money will be reinvested, e.g. into further stock, advertising,

product development, etc.

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2.2 – Establish realistic time lines for achieving targets

By the end of this chapter, the learner should be able to:

 Identify factors that may influence the setting of time lines for achieving sales targets within

their workplace

 Provide examples of sales targets that are time bound.

Time lines for achieving targets

When developing sales targets, there will need to be a focus on how long it will take for these targets to be

achieved. Setting realistic time lines can help businesses to plan resource requirements over the given period

of time and will also provide a greater insight into when revenue will be coming into the company.

The time line for achieving your targets will depend on a number of factors.

For example:

 How frequently customers tend to purchase the product or service

 How often a new or revised type of product or service is brought to market

 Whether the product or service is only purchased at particular times of year

 The time lines set for achieving wider organisational

objectives.

Multiple time lines

More often than not when developing a sales plan, it may be

necessary to create a variety of timelines for a product or service.

Rather than aiming to reach a certain level of revenue after one

period in time, targets could be set at multiple different times. For

example, you may seek to reach $10,000 gross revenue within the

first month of sales, $25,000 after two months, and $100,000 after

six months. Figures should not just be created in the hope of

achieving them; they ought to be realistic and based on past sales

figures and trends in the market.

In addition, time lines could be created for each of the types of targets set out in the previous chapter, e.g.

gross revenue, gross profit, gross profit margin, volume, and customer quantity.

Examples of time lines for achieving targets may include:

 To achieve $150,000 worth of gross revenue over the course of the first year

 To gain $80,000 worth of gross profit within eight months

 To reach a gross profit margin of 30% after ten months

 To sell 12,000 items over a 15 month period

 To have 1,000 customers using a service within the first two months of operation.

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Considering times of year

Seasonal demand is another crucial aspect to consider when developing products and setting sales targets.

There may be certain goods or services within your organisation that do not have demand all year round and

are only popular at particular times. For example, a travel agency will experience customers wanting to visit

places based on the climate at certain times of the year, and this will result in them altering their pricing and

advertising to match consumer needs.

If the organisation does not generally expect high rates of sales at certain months in the year, then this should

be incorporated into the sales targets. For example, rather than setting a target revenue figure for each

month, this should be altered based on expected levels of demand.

Other fluctuations in demand could occur at:

 Christmas

 Easter

 Valentine’s Day

 Mother’s Day

 Father’s Day

 Bank Holidays.

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2.3 – Determine measures to allow for monitoring of performance

By the end of this chapter, the learner should be able to:

 Outline sales based measures that could be used to monitor performance

 Identify factors which it may be useful to gain feedback from customers in relation to when

monitoring performance.

Measures for monitoring performance

The measures used to monitor the performance of the products or services that are being sold will also need

to be clarified during the planning process. This will depend on what is being sold and the preferences of the

organisation. For example, some companies will purely use sales figures as a measurement of how well a sales

campaign is going, while other will focus on the quality of what is being delivered and the feedback received.

Where possible, a range of sales based and quality based measures should be used to determine the

successfulness of sales.

As outlined in chapter 2.1, the following sales based measures could be used:

 Gross revenue – the total incoming revenue from the

product or service

 Gross profit – the total revenue minus total cost of goods

sold

 Gross profit margin – the gross profit as a percentage of

the gross revenue
 Volume – the total number of products or services sold

 Customer quantity – the number of customers to

purchase goods or use a service.

When sales targets have been set, these should be monitored regularly and can be used as an indication of

whether performance is going better or worse than expected. There may be a need to revise targets or the

marketing strategy and sales approach being used when they are not currently being achieved.

Customer/client based feedback

Regardless of whether your organisation primarily sells products, services, or a combination of both, it is

good practice to plan how customer or client feedback will be used as a basis for the performance of the

organisation. Even when you have achieved your sales targets, it is important to still consider feedback as it

will dictate future levels of customer interest and ultimately sales.

Customer or client feedback could be gained through multiple avenues, such as through face-to-face

conversations, personal interviews, questionnaires, postal surveys, telephone calls, online surveys, etc.

You might aim to gain information in relation to a variety of different factors, such as:

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 The cost of the product or service

 The functionality of the product

 The aesthetics of the product

 The quality of service provision

 Customer service levels

 Discounts and loyalty schemes.

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2.4 – Ensure objectives of the sales plan and style of the campaign are
consistent with organisational strategic objectives and corporate image

By the end of this chapter, the learner should be able to:

 Identify how they can ensure objectives of the sales plan are consistent with organisational

objectives

 Recognise what might be involved in ensuring the style of the campaign is consistent with

corporate image.

Planning sales operations

Planning sales operations must take account of the overall business or departmental goals and priorities. As a

sales manager or supervisor, it is almost impossible to plan how you are going to achieve sales without a full

understanding of the direction the business is taking.

A wide range of factors will affect the business goals. There are external factors such as the overall market,

the competition, technological advances, social aspects, etc. Internally, factors such as staffing, products and

services, etc. will affect your sales plans. For example, the competition may be launching a new product to

rival yours, and so your sales efforts will need to respond accordingly.

Establishing business objectives

You need to ensure that you are fully briefed about the priorities and objectives for the forthcoming period.

You can achieve this by asking to see the business plan or departmental plans, and by having conversations

with your own manager to establish their expectations of your sales team for the period ahead.

You also need to have a good understanding of the marketing and

sales strategies for the period and be aware of any trends or

developments that will affect the sales operation. There may be a

new product launch planned for later in the year, for example, and

this will impact on your team in terms of their training

requirements and the information that they can give to customers

before and after the launch.

You can ensure that your objectives are consistent with
organisational objectives by:

 Reviewing organisational documents

 Attending any relevant briefings, meetings or training sessions

 Meeting with people responsible for developing organisational objectives

 Reviewing your draft objectives with your line manager and those responsible for marketing

and sales strategies, etc.

Only when you have this information can you plan the sales operations for your team. The projections that

are made for product or service sales should be in line with those of the wider organisation. For example, if

the company is aiming to increase revenue by 15% over the next two years, the objectives for individual

products or services ought to contribute towards this aim.

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Ensuring style is in line with corporate image

When developing the overall style of a sales campaign, it is crucial to consider the wider corporate image. In

general, the style should be in line with the wider corporate image as a lot of considerations should have gone

into ensuring this image is unique to the company and appealing to its target market. Although there may be

occasions where the style of a campaign will differ to try and attract a wider audience, you should usually aim

to incorporate aspects of the organisational image into the product or service design and marketing.

For example, ensuring the style of the campaign is consistent with the
corporate image may involve:

 Using a particular colour scheme in advertisements

 Incorporating company slogans or catch phrases

 Placing the logo of the company on displays and promotions

 Using a universal font type.

By following these recommendations, the brand is also more likely to develop its

own unique identity and customers will become familiar with its marketing style

and products or services.

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3. Develop a sales plan

for a product

3.1. Determine approaches to be used to meet sales objectives

3.2. Identify additional expertise requirements and allocate budgetary resources accordingly

3.3. Identify risks and develop risk controls

3.4. Develop advertising and promotional strategy for product

3.5. Identify appropriate distribution channels for product

3.6. Prepare a budget for the sales plan

3.7. Present documented sales plan to appropriate personnel for approval

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3.1 – Determine approaches to be used to meet sales objectives

By the end of this chapter, the learner should be able to:

 Describe the sales approach that is or could be used to meet sales objectives for a product

or

service

in their organisation

 Identify the key considerations when offering a client-centred approach.

Sales approaches to meet objectives

One of the most fundamental tasks that you need to plan is the sales approach to be used in order to meet

your objectives. As highlighted previously, types of objectives can be wide ranging, and might include efforts

to maximise revenue, product or service sales, or customer numbers.

Sales approaches will be dependent on the type of product or service and the platform that they are being

sold on.

For example, products and service may be sold:

 In the business store

 At the place where a service takes place

 At a sales event/market

 Online

 Over the phone.

All of the above platforms will require high levels of customer service in order for sales figures to be

maximised. Even in an online format, where a verbal conversation may not take place, customers may require

support via live chats, social media, or email. Developing your customer engagement strategy will therefore

go a long towards maximising sales; after products and services have been produced and marketed, it is often

the engagement with employees which will determine whether or not a purchase is made and the quantity of

goods purchased within the transaction.

Client centred approach

Customers are savvier than in the past and they are less interested in your products and services, and more

interested in how their needs are going to be met. Customers are nowadays less interested in the traditional

‘Features and Benefits’ approach to selling where simply giving them information about the product/service

and why it’s worth buying, just isn’t enough.

A client-focused approach is when the sales person:

 Focuses on the customer’s needs

 Recognises that every customer is unique

 Sells solutions, not products

 Talks with the customer, rather than presents to them.

Focus on the customer’s needs

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Turn the traditional approach to selling on its head and shine the spotlight on the customer, not your

products and services. You need to find out what the customer wants, what they care about, and what

objectives they are trying to achieve. For example, instead of explaining the features and benefits of a new

software package, a client-focused approach would establish what the customer uses software for, what’s

important to them in terms of reliability, ease of use, etc., and current problems they have in relation to their

current systems. By taking this approach, you can tailor your offering to meet the customer’s needs.

Every customer is unique

You need to be totally focused and immersed in helping your

customer. You need to be focusing on how you can deliver as

much benefit as possible toward helping the customer to achieve

their objectives. This may involve exploring a large number of

complex factors that are of concern to the customer. For example,

when selling to retailers, a traditional approach was to focus on

how well the product will sell, Nowadays though, retailers are

interested in how well the product will complement their existing

range, how it will affect their budget, how reliable deliveries will

be, etc. Understanding the customer’s individual concerns will

enable you to tailor your proposition accordingly.

Sell solutions, not products

A client-focused approach concentrates on how your product and service can solve a customer’s problem or

meet their needs, rather than simply selling the features and benefits of the product. To do this, you need to

adopt a mindset that you are like an external consultant helping your customers to achieve their objectives

using the tools (your products and services) that you can provide them with.

Talk with the customer, rather than present to them

Customers don’t want to hear about how great your company is or how wonderful your products are. They

want to know how you can help them to achieve their objectives. This means that a standard, generic

presentation is not enough – instead, customers want to see that you have understood their needs and can

offer a viable solution to help them. This can only be achieved through dialogue so that clients can have their

concerns answered. A presentation may still be a valuable part of your selling tactics, but it should be tailored

to the customer and be part of an overall dialogue, not a substitute for it.

Source: Sales Presentations: Adapt to Your Customers’ Needs, Business Needs,

https://businesstown.com/articles/sales-presentations-adapt-to-your-customers-needs/ (access date:

20/07/2017).

Increasing average spend

Two of the most effective methods of encouraging customers to spend more are up-selling and cross-selling.

Up-selling is where you suggest they buy a higher-quality and more expensive product or item to the one they

are considering. This may involve telling them of the additional qualities of the alternative product and

reminding them that their money could go further, i.e. the product is less likely to break and will last longer.

Be careful not to be critical of the item that the customer is intending to buy though; they might have a set

amount of money in mind that they are planning to spend, and could look elsewhere if you make them

believe the lower priced item is of poor quality.

https://businesstown.com/articles/sales-presentations-adapt-to-your-customers-needs/

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Cross-selling involves convincing a customer to buy an additional product or service in addition to what they

were intending to purchase. For example, when a customer arrives at the point-of-sale terminal, you might be

able to point their directions towards additional items on sale.

You could also consider ways of combining multiple items so that customers are more likely to buy them all

together.

Attracting new customers

In order to meet sales objectives in relation to increasing customer numbers, you will need to consider a

range of approaches to increase the number of customers who hear about the business and its product

and/or decide to enter the place of sale.

Methods of attracting new customers or clients could include:

 Effective advertising – raising awareness of your company and the products it sells is

highly significant. Think about the method of advertising that will most likely reach your

target market. Should you conduct extensive online advertising? Will leaflets and billboard

advertising result in increased traffic? Whatever the choice of advertising, make sure that

your company seems attractive; highlight offers when appropriate and use an attractive

display style

 Providing high customer service – when your

customers are left satisfied with their experience of

visiting your business, they are much more likely to

recommend you to others, therefore increasing the

chances of new clients being drawn to the

company. Common customer needs and

expectations include:

o friendliness – speaking politely to customers

and greeting them upon the start of a

conversation

o empathy – the ability to understand and appreciate the circumstances of the

customer by placing yourself in their shoes

o fairness – being able to treat all customers with the same level of respect, regardless

of their circumstances

o clear instructions and information – the ability to provide the customer with the

information that they are seeking

o options and alternatives – when the needs of the customer cannot be immediately

met, it is important to provide them with alternatives

 Front of shop display – do not underestimate the importance of having an appealing front

of store. When customers are not necessarily seeking a particular product, having an

attractive or interesting display at the entrance to your premises will make people more

likely to enter. This is especially important in an area where there are a large number of

stores such as on a busy street or in a shopping centre. You could display some of your

premium products or highlight offers in order to draw in potential customers.

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3.2 – Identify additional expertise requirements and allocate budgetary
resources accordingly

By the end of this chapter, the learner should be able to:

 Identify types of expertise which may be required during the sales planning process in their

organisation

 Highlight questions that should be asked to establish the budgetary resources that need to

be allocated for experts.

Expertise requirements

When preparing for a sales campaign, you will need to incorporate the additional support which will be

required from outside the sales team. Not only will this information be required to organise when certain

actions and processes need to take place, but will also need to be incorporated into budgeting considerations.

It may be necessary to draw up a list of all tasks that may be needed conducted throughout the sales process

and identify the relevant personnel who will be required.

Examples of expertise required may include:

 Graphic designers

 Store layout specialists

 Construction workers

 Website designers

 Media producers

 Advertising executives.

Budgetary resources

You could ask yourself the following:

 Identifying budgetary information may involve asking the following:

 What level of expertise is required?

 Can internal employees be utilised, such as from other departments?

 Does the organisation have partnerships with other agencies or organisations who can

supply specialists?

 How long would support be required for?

 What expenses would be involved?

Answering these questions should give you an idea of where expertise can be sourced from and costs that

will need to be included in your sales budget.

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3.3 – Identify risks and develop risk controls

By the end of this chapter, the learner should be able to:

 Identify risks that might arise when developing a sales plan for a particular product or

service in their organisation

 Highlight pieces of information that should be contained within a contingency plan.

Identifying risks

Various situations could arise during the sales process which may result in the sales team needing to revise

their strategy. Failing to react to issues could result in products or services failing to launch and the

organisation facing large financial difficulties.

Risks could be wide ranging depending on the type of product or service that the organisation is developing

and selling.

For example:

 The product may not be produced to the expected

quality

 Advertising does not reach the intended customers

 Customers disagree with the pricing strategy

 Competitors release similar or improved version of the

product

 There is an economic downturn

 Natural disasters (i.e. floods, earthquake, etc.)

 Theft, fraud or other security issues

 Broken/malfunctioning equipment.

Developing a contingency plan/risk controls

Contingency plans need to be present in sales plans and budget forecasts, in the event that things do not go

to plan and the initial plan needs to be altered. Contingency plans should be flexible enough that last minute

changes can be implemented. They should provide an opportunity for action to take place so that an

immediate solution can be found and utilised.

When unforeseen changes occur that have a negative on business finances, it is recommended that you have

a contingency plan and risk controls in place to deal with them. Examples of actions you could take are

detailed below.

Amending stock allocation

There are various actions you could take to alter stock when revenue is lower than expected. You might

attempt to manoeuvre items on the shop floor to bring them to the attention of customers. Alternatively, you

might have to make amendments to ordering procedures so that fewer items are received in the following

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stock deliveries. This way, you are less likely to have items getting backed up in storage, and the money can

be budgeted elsewhere.

Introducing sales promotions

A further contingency plan that could be implemented in response to lower than expected sales is to place

items on offer. Although this may result in revenue being lower than originally intended when budgeting, it

can help to prevent items going to waste, particularly when they have a time-bound shelf life.

Altering recruitment strategies

Management figures should be able to alter recruitment practices at

short notice in order to respond to financial circumstances. This may

involve coordinating recruitment themselves or communicating with

another individual or team who leads the process.

The recruitment strategies used will depend on the type of financial

circumstances being experienced and the believed causes of these.

Setting aside a contingency fund

Setting up a contingency fund can prove to be a valuable decision

within a sales environment. This is a certain amount of money that is

set aside to cover any unexpected costs or lost income. As budgets are constructed based on the projected

levels of revenue, some funds should be set aside in case sales are lower than originally intended or in the

case of damage or theft of products.

Failure to make payments can result in fines or interest building up, so being able to pay creditors

immediately can help prevent further charges being incurred. A further benefit of having a contingency fund

set aside to cover costs is that you may build a reputation for paying on time, which could lead to favourable

deals with suppliers in the future.

Contingency plans may need to include the following information:

 The situation needing action

 Personnel to be involved

 Contact numbers for personnel, resources, etc.

 Legislative, organisational and ethical requirements to consider

 How it will impact on the organisation

 Costs that may occur – including how to resolve the issue

 Solutions – these can be as many as necessary for different outcomes

 How the solution will be implemented and by who

 A deadline.

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3.4 – Develop advertising and promotional strategy for product

By the end of this chapter, the learner should be able to:

 Outline questions that may need to be answered in a business meeting to establish the

required advertising strategy

 Identify a range of above-the-line and below-the-line promotional strategies.

Developing advertising and promotional strategy

Advertising is a form of marketing communication with the purpose of trying to persuade an audience to

respond in some way. Commercial organisations use advertising to associate their brand with quality to

increase public consumption of their product or service. Not-for-profit organisations, such as political

parties, use advertising to promote other activities that require public support in some way. Advertising can

also be used as reassurance that a company is reliable or stable.

Holding a meeting to discuss marketing strategy

Many organisations will hold workplace meetings between employees of varying roles to agree upon overall

marketing approaches. This will not only involve building a detailed picture of who the target market is,

which has been discussed previously, but should incorporate the methods that will be adopted to best catch

the attention of these consumers and lure them into purchasing your products or services.

The following will need to be considered when reviewing or developing advertising strategies:

 What information has been gained through market research to inform you about customer

needs?

 What is your USP?

 How can the USP be demonstrated in any communication with consumers?

 Why do existing customers want to buy your products or services?

 What methods of promotion are most likely to influence consumers?

 Which influences play the biggest part in your consumer’s decisions?

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Types of promotions

Above-the-line promotions involve advertising through media, and may include:

 Television adverts

 Radio adverts

 Magazines

 National or local newspapers

 Billboards or displays

 Web-based advertising.

Below-the-line promotions include all other promotions, such
as:

 Sales promotions, such as competitions or free offers

 Sending direct mail to intended consumers

 Making door-to-door deliveries, such as catalogues

 Trade events or exhibitions

 Sending emails and text messages.

A range of these strategies might be used and this will generally be decided based on the resources available

and the target market; if you were aiming a product at those aged between 16-30, then using social media

advertising might be the best option to use.

Using displays and stands

Promotional displays and stands are used in a wide variety of business and retail contexts to deliver a message

to customers and wider members of the public. Types of display differ substantially; the size, material, and

content used to convey a message will depend on a number of factors, such as the intended target audience,

the resources available, and the amount of accessible space.

Stands and displays are commonly used in retail environments, such as in window displays, on store walls,

and located sporadically on a shop floor. Larger companies also choose to create displays for use at trade and

consumer shows, or to be placed on billboards across cities.

Stands are used to capture people’s attention and deliver a particular message or information to them. The

content that ought to be included should be based on what you are promoting. The major objective that will

form the basis for most displays and stands is to increase sales and customer numbers. This might be through

convincing existing customers to increase their spending on new or relaunched products and services, or

enticing new customers to your business.

The following are often promoted through a display or stand:

 Products – particularly if a new product has been introduced to raise awareness about its

existence and benefits

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 Groups of products – when a new range of goods have been collectively created or

rebranded

 Services – such as banking, insurance or energy providers, with the aim of convincing

customers to use the service being advertised

 Events – to raise awareness of their occurrence and convince people to attend. Examples

include music, sporting, or cultural events.

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3.5 – Identify appropriate distribution channels for product

By the end of this chapter, the learner should be able to:

 Identify types of businesses or intermediaries who may be involved in a distribution channel

for a product

 Describe the main types of distribution channel for products.

Product distribution channels

What is a distribution channel?

A business channel refers to a chain of organisations or intermediaries through which a product is transferred

until it reaches the end consumer. During business deliberations on how products should be brought to

market, you will need to consider what will be the most effective and efficient distribution channel for a

product or range of products that you are introducing.

Businesses or intermediaries that may be involved in a distribution channel include:

 Producer

 Wholesaler/Distributor

 Value-Added Reseller (VAR)

 Consultant

 Dealer

 Broker

 Sales agent

 Retailer.

Distribution channels can vary in length and will depend on a number of different factors. You will need to

consider the best pathway for your company and the product type in order to deliver the product to the

highest number of consumers in the most cost effective manner. In general, channels with greater numbers

of intermediaries requires the organisation to distribute money to a higher range of places. However, this

does not mean that having short distribution channels is a recommended cost saving idea; many wholesalers

and retailers can add value to a product and increase the customer base who are likely to view and purchase a

product.

Choosing an appropriate distribution channel will involve taking the following into account:

 The nature of the product:

 The market

 The business

 Legal matters.

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Types of channels

Although a range of the above organisations and intermediaries could be involved in distribution channels,

there are three main channel types which you should consider. They include a combination of producer,

wholesaler, retailer and consumer.

The first channel is the longest and contains two channels between the producer and the end consumer. A

wholesaler will buy and store a large quantity of goods from the producer and then supply a number of

smaller retailers. This will often make economic sense for smaller retailers who can build relationships with

wholesalers.

The second channel does not include a wholesaler and instead takes the form of retailers acquiring products

directly from producers and then selling them to consumers. This will often be the method used by large

retailers such as electronics retailers who can purchase large quantities of goods from major electronics

corporations. Some producers will be selective over the retailers they will supply as they need to be confident

that high volume orders will be continuously made.

The third example does not include intermediaries, and instead includes consumers buying directly from the

producer. This might be the case when producers only make a small quantity of goods and supply the local

area, for example, a local pottery company producing and selling goods to the local area. Alternatively, large-

scale producers may sell goods directly to their consumers, such as Amazon creating and selling their own

branded products, such as the Kindle and Fire TV Stick.

Source: Distribution Channel, Investopedia, http://www.investopedia.com/terms/d/distribution-channel.asp

(access date: 18/07/17).

http://www.investopedia.com/terms/d/distribution-channel.asp

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3.6 – Prepare a budget for the sales plan

By the end of this chapter, the learner should be able to:

 Highlight actions that could be taken to familiarise themselves with the budgeting process

in their organisation

 Recognise questions they need to ask themselves when developing their budget for a sales

plan

 Explain why it might be useful to look at the previous year’s budget when developing a

budget for a sales plan.

Preparing a budget

It is likely that you will have a budget process in place which determines what you have to do and by when. It

would be usual to develop a sales plan and budget after the sales team’s draft objectives have been approved,

or as part of the overall approval process.

If you are unfamiliar with the budget processes in your
organisation, you can:

 Ask for training

 Ask your line manager for

information and advice

 Speak to personnel in the finance department for

information and advice

 Review your organisation’s budget procedures

 Review last year’s budget and identify any lessons learnt,

etc.

When planning your budget for the period ahead, it is important to be realistic. It wouldn’t be appropriate to

ask for 10 more sales staff without a valid and thoroughly-researched proposal behind it, for example. Having

agreed your sales team’s objectives, the next step is to develop a sales plan which will enable you to deliver

those objectives and the budget that you think you need to do this. This isn’t simply a matter of looking at

last year’s budget and increasing it by 10%, which is a surprisingly common practice.

To develop your budget for a sales plan, ask yourself:

 What resources do I need to deliver the objectives (i.e. people; money; equipment;

materials; etc.)?

 What activities does the sales team need to engage in to deliver the objectives (e.g. sales

events, customer visits, marketing activities, sales administration, etc.)?

 How will the sales team be organised (e.g. what are the territories, how is experience within

the team to be used, etc.)?

 What support does the sales team need in order to deliver the objectives (e.g. training,

mentoring, compensation, access to people/equipment, etc.)?

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 How can costs be controlled (i.e. what are the essential items of expenditure, how can those

be kept to a minimum, where is waste occurring, etc.)?

A useful calculation is to look at the average amount of effort required to achieve a sale. If it takes on average

five attempts to speak to a customer, and two conversations to get a meeting with them, four meetings to

achieve a sale, you can calculate the time and other resources required to achieve one sale.

Having considered the above questions, you should be in a position to formulate a sales plan with an

associated budget setting out what sales you expect to achieve and the budget you will require to deliver your

objectives.

Previous budgets

A useful place to look when drawing up a proposed budget would be last year’s budget.

You may ask:

 Were there any areas of over – or under – spend? If so, why was this?

 Were there any unexpected expenses during the year?

 How can any overspends be avoided in the forthcoming period?

 What lessons can be learnt from last year’s budget?

The budgeting process is important as it’s your opportunity to

ask for the budget that you predict that you’ll need in order to

deliver your sales plan. It’s vital, then, that it is realistic. You may

find that the budget proposed and the actual budget allocated are

two very different figures. This is normal practice as the overall

company finances need to take into account all of its activities,

not just sales, and budgets are balanced out accordingly.

In the likely event that the actual budget is different from what

you asked for, then you will need to revisit your sales plan, and

perhaps your objectives and make adjustments accordingly. This may involve cutting out some activities and

finding lower-cost methods of achieving similar results, for example. It may be helpful to consult with your

manager when it comes to revising your sales plan and objectives. You wouldn’t want to commit to

delivering a sales plan which is unrealistic given the budget allocated, and then you find later that you have to

quickly make significant savings to avoid going over budget.

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3.7 – Present documented sales plan to appropriate personnel for approval

By the end of this chapter, the learner should be able to:

 Identify people who it might be useful to gain specialist advice from when gaining approval

for a sales plan in the workplace

 Provide examples of tips that they should consider when presenting their sales plan to

appropriate personnel.

Proposals for resource requirements

Proposals will likely need to be presented to senior management or other stakeholders in the organisation.

You will need to show them that the benefits of it outweigh the costs and that they should invest in it.

In order to succeed, your proposals will need to align with the overall strategic goals of the organisation. You

may also need to outline what sort of return will be achieved, such as profits or higher customer retention.

When you present proposals for sales to your organisation, you will need to be supported by a variety of

information. This will make your claims more credible and more likely to be accepted by those who allocate

resources.

Information sources could include:



Specialist advice

 Data from previous sales

 Risk analysis and contingency plans

 Opinions of others within the organisation.

Specialist advice

If you need respected, specialist advice, you may be able to consult a range of people inside or outside your

organisation. They should be able to give you information that will support your plan and can be used to

convince stakeholders. Be careful not to twist the meaning of information or take it out of context, as this

will often weaken your argument when it is discovered.

Specialist advice can come from:

 Managers

 Financial consultants

 Marketing experts

 Accountants

 Suppliers

 Internal and external customers

 The sales team

 External experts.

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Approval for plan

Presenting a proposal correctly is essential to obtaining approval for a plan from the relevant party. This is

often done as a presentation to stakeholders, senior management, committees and other interested people.

The formality of this will vary on the scope of resources you are requesting.

Tips to improve presentations are:

 Providing your audience with copies of the plans so they can read it through as you

continue

 Using PowerPoint to visually demonstrate key points

 Using graphs to put costs and savings in context

 Including contingency plans and risk managements plans to show you have considered all

possibilities

 Making a conclusion which sums your facts and information up

 Closely following the organisational goals and explaining how it will benefit the business.

You will likely need to wait for parties to review the plan in detail once you have made your proposal. They

may also recommend it to other bodies (e.g. board of directors) that are responsible for making decisions.

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4. Identify support requirements

4.1. Identify and acquire staff resources to implement sales plan

4.2. Develop an appropriate selling approach

4.3. Train staff in the selling approach selected

4.4. Develop and assess staff knowledge of product to be sold

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4.1 – Identify and acquire staff resources to implement sales plan

By the end of this chapter, the learner should be able to:

 Identify the factors that are likely to influence the resources required to implement a sales

plan

 Highlight how the structure of the work team might be altered to facilitate the sales process

 Outline the process required when they need to recruit staff to support the sales plan

implementation.

Identifying staff resources

Once you have a detailed understanding of the direction to be taken with a sales plan and the performance

targets, it will be necessary to identify the support requirements needed in order to bring the product or

service to market and for it to be a success in terms of objectives being met.

The resources you need will be dependent on multiple factors, such as:

 The current revenue of the organisation

 The number of employees available

 The product or service in question

 The customer base of the organisation

 The potential number of customers

 The skills required to market the product or

service.

Size of the sales team

If your sales team is too large, it will be more difficult to manage, there will be insufficient work for them to

do, there may be competition between staff, and they will become frustrated and some may leave. On the

other hand, if the sales team is too small, people will be working under pressure, sales might be missed due to

the lack of time to close the deal, and they may also become frustrated and leave. So, getting the size and

composition of the team right is important.

One method for establishing the size of the sales team is to divide the expected sales revenue by the average

amount of revenue generated per salesperson. So if your target is to achieve $500,000 in sales over the year

and the average salesperson generates $100,000 per year, then you’ll need five salespeople. However, this

calculation does not take account of differences in skills and expertise, differences in the size of territories,

nature of the customers, etc.

When considering the structure of the sales team, you should ask yourself the following questions:

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 Will all salespeople be of equal status or will there be junior and senior roles? How would

the different levels of roles relate to each other? What would be the differences in their

responsibilities, if any?

 Will all roles be full time and permanent, or will there be any part-time or temporary roles?

 Are there opportunities for flexible working arrangements (e.g. home-working; annualised

hours; etc.)?

 What will be the responsibilities of each person (e.g. will admin duties be performed by a

dedicated Admin Assistant, or will salespeople take care of their own admin)?

 What will be the reporting structure (e.g. should all roles report directly to you or should

there be a layer of supervision within the structure, etc.)?

Acquiring staff

When developing the sales plan for the period ahead, it is often tempting to just stay with the way things are

currently. However, developing the new sales plan and objectives provides an ideal opportunity to review

your current staffing arrangements and look at ways of improving the structure.

For example:

 Can you bring in a secondee from another internal

department if you need to temporarily increase the

number in your team?

 Can you find an internal secondment if you need to

reduce your headcount?

 Similarly, can you bring in a temporary recruit on a

work-experience or contract basis for a short period

of time?

 Can you shuffle geographical coverage to enable people to work from home either all of the

time or for a few days per week?

 Can you allow people to work annualised hours to enable them to work flexibly across the

year?

 Can you subcontract any of the work of your team, etc.?

When you feel that employee numbers currently will not meet the demands of the sales process for a new or

revised product or sales campaign, then it may be necessary to look at temporary recruits or hiring new full-

time staff. This is particularly true when the company is going through a growth phase and aims to

continually grow its employee base.

To recruit staff, you will often have to go through the following process:

 Create a job purpose and person specification

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 Advertise the vacancy

 Review applications

 Conduct testing/ assessments

 Shortlisting

 Interview

 Make a selection decision

 Make appointment.

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4.2 – Develop an appropriate selling approach

By the end of this chapter, the learner should be able to:

 Highlight aspects of a selling approach which it may be necessary to outline to the sales

team.

Developing a selling approach

The selling approach that employees need to be made aware of will be dependent on the types of goods and

services being sold and the platform they are being sold on. Employees may be given various different roles

and will need to be informed about what these are.

In chapter 3.1 sales approaches referred to how to work with a client centred approach, how to increase the

average spend by customers, and how to attract new customers. These ought to be incorporated into the

selling approach that employees are made aware of.

It may be necessary to hold a meeting among all personnel within the sales team to outline the approach to

be taken and their duties as a salesperson.

Aspects of a selling approach to outline may include:

 How to greet customers

 How to inform the customer of the product or service features and benefits

 How to use technology during the sales process

 How to meet the needs of the customers

 How to provide high levels of customer service

 How to respond to issues and concerns.

Employees should be fully clear on the sales approach to be taken, and the actions that may need to be taken

to train employees on how to act on these approaches will be discussed in the next chapter.

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4.3 – Train staff in the selling approach selected

By the end of this chapter, the learner should be able to:

 Identify methods that could be used to train staff in the necessary selling approach.

Training staff

Staff members involved in the sales process may require training prior to the product or service being placed

on the market. Even when they have been involved in sales campaigns in the past and are experienced in

customer engagement, it may still be necessary to conduct training and coaching in relation to the approach

needed for this current product or service.

There are a wide range of training methods that you could use in your initial training programme.

Training methods may involve the use of:

 Audiotapes

 Case studies

 Computer packages

 Lectures

 One-on-one instruction

 Role plays

 Simulations

 Teleconferencing

 Videoconferencing.

It is good practice to provide a mix of different training methods in a programme. This is because people

have different learning styles and preferences. One person may be quite happy listening to lectures all day

long, but this might send another off to sleep as their preference is for more active, hands-on learning. Using

a mix of different methods means that there will be something to suit everybody.

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4.4 – Develop and assess staff knowledge of product to be sold

By the end of this chapter, the learner should be able to:

 Identify product and service details which it may be necessary for staff be aware of

 Highlight sources of information on products or services to be sold

 Identify methods that could be used to assess staff knowledge of the product to be sold.

Knowledge of product details

Any staff member that is part of the sales team and will be responsible for communicating with customers,

suppliers, the media, retailers, etc. will need to have a detailed knowledge of any products that are being sold.

Being able to provide key information to others in a prompt manner demonstrates that employees are

passionate about the product and this could be the difference between making a sale and not. Although

customers will usually understand if an employee has to go and clarify something about the product or

service, this could result in a loss of sale if the details cannot be established quickly.

Product details to confirm may include:

 Dimensions

 Weight

 Colour

 Durability

 Functions

 Cost and discounts

 Materials

 Specifications.

The actions that are required to obtain and study information regarding

products and services will vary depending on the type of organisation that you work for.

Service details may include:

 What is involved in the service

 The length of service delivery

 Who delivers the service

 The experience or skillset of the person delivering the service

 The costs involved.

Sources of information

If you want all employees in the sales team to have a detailed knowledge of product or service details, then it

is a good idea to inform them of where they can acquire the knowledge from and the level of detail that is

required.

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It may be necessary for employees to:

 Read an employee handbook

 Study a product or service information book

 Locate and read product or service details on

website or intranet

 Read product labels

 Locate and read marketing plan

 Become familiar with catalogues

 Read product or service promotional

documents

 Speak with supervisors or specialists.

Assessing knowledge

Before employees are left responsible for conveying product or service information to others, it may be a

requirement for them to undertake a test. You might decide to inform them in advance that this will be

taking place or implement it randomly to see whether they have taken the time to memorise the key

information. The level of formality may dictate the assessment type that you choose to use. If you inform

employees that it is an informal test they might look upon it in a more positive manner, as some individuals

might find a formal test pressurising.

Methods of assessing knowledge could include:

 A multiple choice test

 A written question and answer test

 An individual verbal assessment

 A group verbal assessment

 A role play or simulation.

You will also need to establish whether there needs to be a pass rate or certain knowledge level for employees

to reach. If necessary, staff members may have to further revise the product or service details and repeat the

assessment until their knowledge is deemed acceptable.

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5. Monitor and review sales plan

5.1. Monitor implementation of the sales plan

5.2. Record data measuring performance versus sales targets

5.3. Make adjustments to sales plan as required to ensure required results are obtained

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5.1 – Monitor implementation of the sales plan

By the end of this chapter, the learner should be able to:

 Highlight aspects of the sales plan which ought to be monitored

 Identify systems that could be used to evaluate sales effectiveness.

Monitoring implementation

Once the sales plan has been finalised and everyone is aware of their responsibilities, it will be necessary to

monitor and review the sales plan. This should take place throughout the sales process so that any issues or

concerns can be addressed before they escalate.

You could choose to monitor multiple aspects of the sales process which have been looked at throughout the

unit.

For example:

 Market research

 Product development

 Advertising and promotion

 Resource acquisition

 Product placement

 Sales figures and customer interest.

Observing response to products

You will need to try and establish both the interest in the product or service that you are offering, and

crucially, the sales figures once it has been placed on the market. The actions to do this will be similar to

those highlighted in relation to reviewing previous sales figures.

You may have a range of systems for evaluating sales effectiveness, such as:

 One-to-one performance reviews

 360˚ feedback and review

 Sales performance review e.g. revenue, gross

profit, customer numbers

 Observations of activities e.g. customer visits,

sales presentations

 Scrutiny of written work e.g. proposals; letters;

emails

 Review of third party feedback on performance e.g. from customers; colleagues; senior

managers

 Performance meetings

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 Self-assessments against performance standards.

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5.2 – Record data measuring performance versus sales targets

By the end of this chapter, the learner should be able to:

 Describe organisational expectations in relation to recording data measuring performance

versus sales targets.

Recording data

After obtaining information which states how the sales process is progressing and whether targets are being

met, your organisational requirements may state that data needs to be recorded. Records can act as a useful

tool to indicate how performance is improving or degrading over time, and can be implemented into

presentations and reports to provide key personnel with an exact understanding of how well sales are going.

The requirements within your workplace for recording data may be contained in handbooks or workplace

guidelines, but could include details being entered into a spreadsheet or specialist software system. When

time-bound objectives were set at the start of the process, these could be placed alongside the data to

demonstrate expectations versus reality. For example, a line graph could be used where the total revenue for

a product is placed alongside the expected revenue. If actual sales are higher or lower than expected, then

further actions can be taken to rectify the situation or enable continued success.

You will need to clarify the following in terms of recording performance data:

 The measures of performance that should be used

 Where sales and performance data can be obtained

 The regularity of sales monitoring and recording, e.g. daily, weekly, monthly

 The method that should be used to record data

 How current sales should be presented or compared to expected sales

 When interventions or escalations should take place.

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5.3 – Make adjustments to sales plan as required to ensure required results are
obtained

By the end of this chapter, the learner should be able to:

 Identify adjustments that could be made to a sales plan to ensure required results are

obtained

 Describe how confirming and corrective feedback could be provided to staff members to

ensure required results are obtained.

Adjusting the sales plan

Managers and supervisors may be responsible for altering the sales plan once they start receiving

performance based evidence on a product or service. This could happen at various stages, such as in response

to customer feedback during product development, or after sales have started to take place. Remember that

altering the sales strategy does not necessarily mean that sales are lower than expected; when sales are higher

than forecasted, you might also need to make adjustments, such as altering your contract with a supplier in

order to receive a greater quantity of goods, or recruiting new staff members to handle the demand.

Adjustments could refer to the possible contingency plans as highlighted in chapter 3.3, as well as others.

For example, you might have to:

 Change stock ordering

 Manoeuvre stock placement

 Introduce sales promotions

 Alter pricing strategy

 Alter recruitment strategies

 Make changes to the product or service

 Modify advertising and promotion method.

Providing feedback to employees

Where you have come to the conclusion that the sales plan is in someway not reaching its potential due to

employee performance, it may be useful to provide them with feedback and suggestions. The use of feedback

is a method of supporting the work team and ensuring that they can continually improve their performance

in order to increase profits.

Confirming feedback

Conforming feedback is that which merely informs the recipient that they are doing the correct thing and

that they should continue as they are. This approach should be utilised instead of simply allowing employees

to carry on without any communication, as it can build confidence and lets them realise that they are on track

in meeting objectives.

Corrective feedback

Corrective feedback is that which informs the recipient that they need to correct certain actions in order to

perform as desired. They are usually given specific examples of the desired behaviour or result they are

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required to correct to. Where necessary, further training could be provided to employees who are struggling

to engage with customers and convince them to purchase the product or service.

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Summative Assessments

At the end of your Learner Workbook, you will find the Summative Assessments.

This includes:

 Skills Activity

 Knowledge Activity

 Performance Activity.

This holistically assesses your understanding and application of the skills, knowledge and performance

requirements for this unit. Once this is completed, you will have finished this unit and be ready to move onto

the next one – well done!

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References

These suggested references are for further reading and do not necessarily represent the contents of

this unit.

Websites

Calculating revenue: http://www.investopedia.com/ask/answers/09/how-companies-calculate-

revenue.asp

Creating A Mission Statement, Setting Goals And Developing Strategies:

http://rvcog.org/Creating%20a%20Mission%20Statement

Distribution Channels: http://www.investopedia.com/terms/d/distribution-channel.asp

Increasing transaction value: http://marketingwizdom.com/strategies/value

Sales Presentations: Adapt to Your Customers’ Needs: https://businesstown.com/articles/sales-

presentations-adapt-to-your-customers-needs/

All references accessed on and correct as of 20/07/2017, unless other otherwise stated.

http://www.investopedia.com/ask/answers/09/how-companies-calculate-revenue.asp

http://www.investopedia.com/ask/answers/09/how-companies-calculate-revenue.asp

http://rvcog.org/Creating%20a%20Mission%20Statement

http://www.investopedia.com/terms/d/distribution-channel.asp

9 Higher Transaction Value Strategies

https://businesstown.com/articles/sales-presentations-adapt-to-your-customers-needs/

https://businesstown.com/articles/sales-presentations-adapt-to-your-customers-needs/

Requirements:

Font: Times New Roman

10 APA Style reference and In-text citation

Answer must include 100 words each question!

PLEASE DO IT PROPERLY!

BSBSLS501 – Develop a Sales Plan

Questions:

1.

Look for an organisation or any company and then read through a variety of their workplace documentation, which contains information related to sales requirements or sales document or their sales plan. Interpret this information and create summaries for employees which outline their organisational requirements during the sales process?

2. Conduct a research or market analysis actions in order to highlight a new or innovative sales approach that can be used for an upcoming sales plan. Summarize the actions taken with a new or innovative ideas.

3. Write a draft sales plan in no less than 100 words. This should outline the product unique selling point, sales targets, risks, and sales approach. Ensure that the write up:

· Uses appropriate structure and language

· Enables questions to be asked to clarify understanding?

4. Locate a sales figure for a product or service from a previous sales campaign.

Use this data and organisational goals to develop targets for a current product or service to be released. This should involve the use of mathematical calculations and your targets should be put into a workplace system or spreadsheet?

5. Organise and document training requirements for at least three people within the sales team. This should involve holding a conversation with the individuals to discuss their role and the training they require in order to conduct their role effectively.

6. Following the implementation of the sales plan within the workplace, monitor the sales performance and on at least two occasions and report your findings to relevant personnel. Where necessary, make amendments to the sales plan where performance is different to expectations?

7. Outline at least two principles and techniques for selling.

8. Provide 3 examples of methods for monitoring sales outcomes.

9. Outline the statistical techniques that are used in your place of work to analyse sales and market trends.

10. Outline two internal and external sources of information that are relevant to identifying organisational strategic direction and developing a product sales plan.

11. Analyse information from a variety of internal and external sources and develop a sales plan for a product and sales territory that meets the organisational strategic direction.

The plan should incorporate the following:

· Resources requirements and budget

· Achievable sales targets

· Performance measures

· Approaches to be used to meet objectives

· Risk Management

· Advertising and promotional strategy

· Product distribution channels

This should be structured in line with organisational expectations.

12. For the sales plan that you have developed, describe how would you:

· Acquire staff

· Develop a selling approach among the sales team

· Provide training and support to the sales team on product knowledge and the sales approach.

13. Following the implementation of the plan, monitor and evaluate performance over at least two designated time lines, such as weekly or monthly. Adjust the plan as appropriate in response to performance levels.

14. Provide 3 examples of adjustments that could be made to a sales plan to ensure required results are obtained.

15. Describe how confirming and corrective feedback could be provided to staff members to ensure required results are obtained.