Definition of Sales Strategy

A sales strategy is a plan by a business or individual on how to go about selling products and services and increasing profits. Sales strategies are typically developed by a company’s administration, along with its sales, marketing and advertising managers. All involve “pitches,” or key points to address when speaking with potential consumers. Some of these pitches, such as those used by telemarketers, may have to be memorized and communicated verbatim.

Identifying Markets

Sales strategies differ by industry, but no matter what you sell, you need to determine the target market. For instance, it would be unwise for a company that sells baby dolls to advertise its products in men’s fashion magazines. But identifying a market goes beyond the obvious. Things such as the location, age, gender and spending habits of a company’s potential customers must also be established.

Setting Methods

All companies must determine how to go about selling and promoting their products when developing a sales strategy. In other words, will you contact customers through the mail? By phone? Or by sending out mass marketing emails? Many companies use all of those methods--and more--in their quest to meet a potential client face-to-face. In fact, much of how a salesperson goes about pushing products and services is by, again, knowing her market.

Knowing Competition

Any good sales strategy is built with the competition in mind. That means understanding what has worked for opposing companies and perhaps even integrating it into your own sales strategy. Or even better, knowing what works for the competition and improving it, either by offering a similar product at lower prices or marketing a product as if it’s the best of its kind.

Analyzing Trends

Occasionally, a product will go out of style and need to be updated, or replaced altogether. In other instances, the economy will determine how much a consumer is willing to spend on a certain product. Understanding these types of trends is a big factor in developing a sales strategy. The best strategies prepare themselves well in advance for when products become less popular or when financial markets fluctuate.

Staying Organized

Organization is a major factor for success in any industry and sales is no different. Therefore, sales strategies need to include details on the role of those making sales, how accounts and territories should be managed, and of course, commission and compensation. Sometimes, strategies even outline incentives and bonuses for a successful sales record.

by Sam Amico
smallbusiness.chron.com