How to build a sales plan to maximize profit for beginners

The sales plan provides information about the strategy, goals, tools, and processes and the necessary indicators to achieve the business’s sales goals. A sales plan can be short but requires thought and research about the specific company, customer, and sales process. To create a sales plan, businesses need to define their goals, who the target customers are clearly, and how the sales process is established.

1. What is the sales plan?

1.1. Sales plan concept

A sales plan is a sales activity plan showing sales goals, strategies, and tactics. A good sales plan will help businesses identify specific, reasonable sales goals and exploit market potential.

In particular, a sales plan must always go hand in hand and derive from marketing goals. The sales plan is an integral part of the business strategy with elements such as: what to focus on selling and how to use sales skills.

1.2. Distinguish between business strategy and marketing strategy

According to Jauch and Glueck (1993): “A business strategy is a single, general plan that links a firm’s resources to business opportunities. It ties the strategic advantages of a business to the challenges of the environment.” In addition, a business strategy can be understood as the entire long-term action program of the enterprise to use resources to achieve the set goals and tasks effectively.

Marketing strategy is “a marketing-oriented thought that directs a business unit to achieve business objectives”. A marketing strategy includes specific marketing programs for target markets, positioning, marketing mix, and marketing expenditure levels. Marketing strategy outlines how a business delivers value to its target customers to create value for itself.

2. Requirements and targets for the sales plan

2.1. Requirements for a sales plan

A sales plan is a plan that defines a roadmap and how to achieve target sales and profits in a certain area. A sales plan may also represent the personal responsibilities of a salesperson or business representative in a given territory.

A sales plan covers the goals of the sales process and the responsibilities and rights that each salesperson needs to fulfil. A sales plan usually shows sales goals (target sales) and targets for sales representatives. The sales plan must offer deals according to the target norm.

2.2. Sales KPIs

Result indicator

The resulting indicator is expressed through 3 units of measure: Relative sales volume, customer base, and financials.

The volume of goods sold is part of the purpose of trading in the region. This indicator is determined as the ratio (ratio) of the enterprise’s general sales target allocated to an area. This type of indicator is usually based on total sales volume.

In addition, customer-based metrics focus on retaining or attracting new customers. Finally, there are financial indicators. There are three indicators: regional profit, gross profit, and cost control.

Performance Indicators

Performance indicators are usually determined based on the behavior of salespeople. Behavioral norms are considered according to regulations on the number of activities to be performed in a specific time (number of sales calls/day, number of sales calls/day, number of retail displays).

This indicator is not often used in the evaluation of results for many reasons (only measuring quantity does not measure quality, a lot of paperwork, creating dishonesty)

2.3. Purpose of setting sales targets

Sales targets are set out to help managers control business processes more conveniently.

A sales manager can only spend some time observing employees, guiding them, inspiring them, and ensuring they do what they need. From there, a well-designed indicator system can provide an alternative tool for day-to-day control in governance.

Leaders can create memos reminding employees to make sales calls to new customers, ensuring the number of service calls.

2.4. Sales target requirements

Fit

Targets that aren’t based on scientific data or aren’t aligned with the salesperson’s responsibilities will “frustrate” the sales force.

Performance

If the target is too high, employees may not try because they believe it is unattainable or they can cheat; the targets should be increased but achievable.

Easy to understand

The “Keep it Simple” principle is old but always relevant. If a metrics system is too complex, the sales force won’t understand it, and some employees may ignore it.

Completeness

A good metrics program should cover all the standards to guide, control, and evaluate the sales force.

2.5. Sales force involvement in target setting

Managers can also apply the following thought in the sales process: “employees will submit targets that match their potential and ability to sell.”

However, employees may be biased in their projections and set low targets if their pay is limited to those assessments. According to some studies, employees are more committed to their targets when they are involved in defining them.

This scenario shows that the target is set by directors and employees, not by a group of sales forces.

3. General content and the inevitability of the sales plan

3.1. The inevitability and nature of the sales plan

If the sales plan is fully developed and feasible, the objectives for sales activities in the planning period will be realized. Therefore, this is the most important plan in the system of business plans for commercial enterprises.

A sales plan is a document on the timetable for sales activities, resource allocation, physical facilities, labor, and finance for products, markets, or customers. Plans are usually for one year.

The sales plan should be short, simple, and to the point. The sales plan needs to be clever and strategic to attract new customers.

3.2. Contents of the general sales plan

A general sales plan will include the following:

Time: from what time to what time?
Analysis of the general business situation
- Business conditions of the enterprise
- Changes in the macro environment
- Changes in the competitive environment
- SWOT analysis
Define market and sales goals
- Marketing goals to be achieved
- Positioning strategy
- Target market
- The sales target for the whole
Challenges and opportunities for each product
Sales strategy and policy for each product group/market (product A, B, C.D..)
General sales support programs of the business (Communication, PR ..)
Inspection and evaluation plan (Standard, periodical, reward, and punishment regime)

4. The process of building a sales plan for beginners

4.1. Analysis phase

This is the stage of identifying and analyzing the sales planning bases. Those bases are:

Forecasts of business development in the planning period
Markets and customers have needs and capabilities for business items.
Business strategy of distribution intermediaries of the target market.
The ability to grasp customer needs, develop the market, and the ability to change the source of goods.
Supply ability of competitors and substitutes
Based on the orders, the sale and purchase contract has been signed with the customer.
Competitors are also important in building a business’ sales plan.
Other bases are also taken into account when developing a sales plan.

4.2. Goal setting stage

From analyzing the current business situation, businesses determine sales targets for each product type and market area in a certain time. It is necessary to choose the right sales goals from the business development goals.

More than information about the market to achieve the purpose of business development is required. To determine sales goals, businesses need to continue to analyze the factors of the environment and the potential of the company with specific sales conditions.

To accurately determine sales goals, businesses need additional specialized and detailed research on influencing factors such as customers, target markets, and competitors.

4.3. Plan development stage

Develop a sales plan that includes the following:

Sales methods

Includes two forms of wholesale and retail. Each sales method has its advantages and disadvantages.

Sales forms

– If divided by management level: Sales at the director level, Sales at the management level, Sales at multiple levels, and Sales by teams.

– If divided by level of cooperation with customers: Sales by key customers, Sales by mutual, Sales by collaboration.

– If divided by method of contact with customers: Hand-to-hand sales, Telephone sales, Electronic sales, Sales through intermediaries, and Sales through third parties.

– If broken down by customer service level: Self-service sales, Full-service sales, After-sales support sales.

4.4. Implementation stage

An integral part of the sales plan is the details of the time limit for completing each activity that has been built. Administrators need to schedule a time to make the implementation and testing easier.

It is necessary to ensure that the plan is always executed on schedule and regularly reviews and adjusts the content to suit reality.

The implementation is inseparable from developing and perfecting the sales force (organic sales force, contracted sales agents, mixed sales force).

CONCLUSION

Making a specific sales plan will help businesses outline the detailed process to achieve the set goals and targets and identify optimal strategies, tactics, and tools. Needed to maximize performance.

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