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Sales & Sales Management/Business Plan for Sales Manager

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Question
Good Evening Leo,

You provided the criteria for creating a Sales Manager Business Plan for a candidate applying to an external company. How consistent would the provided criteria be if I am applying within my current organization?

Appreciate your time and look forward to the reply.

Robert Sherwood

Answer
SALES  REVIEW  ANNUAL.


1 . Market Review

1.   What broad markets are you servicing?
2.   What specific market segments are you focusing currently?
3.   What percentage of sales are represented by each of these segments?
4.   What is the potential size and growth trend in each of these market segments?
5.   What are the particular strengths and/or weaknesses of these market segments that affect your current/future sales?
6.   What are the basic needs of these customer segments?

2. Sales Review

1.What is the recent sales performance against budget
a)By PRODUCTLINE.
b)By Pareto Effect   80/20.
C)Trends/Growth Rate.
d)Product Growth/Profitability.
e)By Metro/Country Areas.
2.   Describe the strengths and weaknesses of the sales operation.
3.What is the current basic sales strategy in place?

3. Product Group Review

1.   What is the current product groups performance against budget figures?
2.   List your major product groups performance and identify the strengths/weaknesses of each in the market.
3.   What sales actions are being taken to improve the competitive position of product group?
4.   What services are offered to support the product group strategy?

4. Distribution Review

1.   Determine the sales to each of the segments against Budget e.g. Resellers, Chain Stores, SALES AGENTS etc.
2.   What are the strengths and weaknesses of each segment?
3.   List the names of the Top 10 and Bottom 10 performers in each segment.
4.   What are the competitive strengths and capabilities in each of the segment?
5.   What is your basic current strategy in each of these segments?

5. Customer Service Review

1.   What is your current set up to service the customers?
2.   What is the current strategy for customer servicing?
3.   What are the strengths and weaknesses of the customer service operation?

6. Reseller (Trade) Review

1.   What are the functions of Reseller (Trade) currently?
2.   What distribution services do they provide?
3.   What are the strengths and weaknesses of the Reseller (Trade) network?
4.   What is your current strategy for this Reseller (Trade)?
5.   What are the basic needs of this Reseller (Trade)?
6.   What is your sales performance in this segment, as compared to the potential?

7. Sales Organisation Review

1.   Do you have the right type of organization?
2.   Do you have the right number of sales representatives to cover the required area?
3.   Do all sales representatives have a detailed and up todate job description/Job Standards?
4.   Are sales policies and procedures clearly defined, and the sales representatives well informed?
5.   Have you organised for the effective coverage of major accounts and institutions which represent a large potential market?
6.   Describe the strengths and weaknesses of the current sales organisation?

8. Salesforce Performance

Review

1.   Sales by Individual Representative/against budget.
2.   Individual Sales Representative performance by Distribution channel segments.

         9. Sales Manager Self Analysis

1.   Do you spend enough time in the field with both salespeople and customers (buyers).
2.   Have you set up a really effective customer service function?
3.   Do you spend at least one day in A  WEEK  working with a salesperson in the field?
4.   Do you insist on regular well structured reports from sales representatives?
5.   Are you capable of training and developing your sales representatives?
6.   What particular areas would you like to improve yourself, in order to function more effectively?
7.   Do you have at your fingertips a means of monitoring all sales activity, and take the right kind of action, if necessary?

10. Salesforce Review

1.   As a Sales Manager, have you been able to assess the capability of each member of your salesforce to the extent that you can grade them A, B, and C?
2.      Whatactions have you taken over the past year
  a)   To give greater job satisfactions to your A Grade
     Sales Representatives
  b)   To train/develop your B Grade Sales Representatives
  C)   To weed out/replace the C Grade Sales
     Representatives
3.   Have your salespeople ever been trained   internal or external courses?
4.   Have you considered the extent to which sales training would greatly increase the effectiveness of your sales organisation?
5.   Do the salespeople make as many effective calls per day as you feel they could and should?
6.   Is their inquiry to call ratio low?
7.   Do they pioneer for new business as aggressively as you would wish?
8.   Do they use the telephone effectively as a selling tool?

11. YOUR  OWN Sales Management Review

1.   What are the current strengths and weaknesses of the sales management?
2.   What are the positive/negative implications on current operation?
3.   Do you have a sales plan in writing?
4.   To what extent are the plans monitored/revised as the year rolls on?
5.   Is your system for Sales Budgetary control as simple and self¬sufficient as it could be?
6.   Is the Sales/Market information system compatible to your requirements?
7.      Do you have a plan and strategies/tactics for
     a)   Each one of your territories?
     b)   Each one of your key accounts?
8.   Do you have a method of measuring the individual development of salespeople?
9.   Do you provide adequately for management succession?
10.   Have your reviewed and improved the salesforce remuneration system over the past year?
11.   Do your reward salespeople  
  a)   By sales volume
  b)   Gross Margin goals
  C)   Attainment of targets within specific product groups
12.   Do you have sales contests?

12. Sales Promotion and
Merchandising

1.   What is the current sales promotion and merchandising
objectives?
2.   How well have these been achieved?
3.   Summarise the strengths and weaknesses of the sales
promotion and merchandising programmes.
4.   List the methods and media used against budget.

. 13. Sales Support Review

1.   What are your current sales support programmes for your salesforce   like Sales Aids, Sales Kits, Presentation Materials, etc?
2.   What are the strengths and weaknesses of the current practices?

14. Sales Training Review

Regarding yourself / sales representatives, are you satisfied that their knowledge/skills are good and constantly improving?

Knowledge of   -Territory
   Product
   Key accounts
   Sales Techniques
Attitude of    Positiveness
  -Seif development
   Sustained Enthusiasm
Skill in    Planning Sales
   Managing Territory
   Selling
   Solving Problems
   Developing Account Sales

  15.  Sales Territory  CUSTOMER COVERAGE
  Review

1.   What is the number of effective calls a day?
2.   What is the inquiry to call ratio?
3.   What is the average order value by distribution channel
segments?

4.   What is the sales cost per call?
5.   What is the average number of new calls made in a week?
6.   How many new accounts are opened a week?
7.   How many dormant accounts are called upon every week?
8.   Do the salespeople have appropriate customer record
cards?

16. Competition Analysis

At bare minimum, YOU  needs to know who the competitors are, their volumes, and their market share trend.

Knowing the strengths and weaknesses of specific competitors help to identify competitive problems and opportunities that the evolving sales planning should address.

17. Customer Analysis

As a Sales PERSON , to you no factor is more important than the ultimate consumer. Sales/Marketing exists solely to locate and serve these potential consumers.

Do you know   who are your consumers?
  What are their behaviours?
  What attitudes/beliefs prevail?
  How/Where do the consumers buy their
  requirements?

As a Sales Manager, you need answers to all these questions

a)   to locate/develop trade channels, and
b)   to schedule the promotional/merchandising activities

         18. Pricing Review

1.   What have been recent pricing objectives?

2.   How well have these been achieved?

3.   Summarise the strengths and weaknesses of the pricing system.

4.   List your major product/average list price. Compare this with major competitors.

5.   Describe/compare your discount strategy (Trade, Quantity and Promotional) with those of the competition.

===================================
19.HOW    THE  SALES   PERFORMANCE  STANDARDS  SET


THE  PERFORMANCE   STANDARDS  COULD  CONSISTS
OF BOTH   QUANTITATIVE  AS  WELL  AS   QUALITATIVE.
1.QUANTITATIVE  COULD  INCLUDE
-sales  quota  for  the  individual.
-sales  quota  for  the  team .
-actual sales  this  year  against  this year  budget
-actual  sales this  year  against  the  last  year  actual  sales.
-sales  expenses  against  sales  target.
-market  share  target  for  the  territory
-gross  margin  against  the  sales. [ this year ]
-this  year  gross margin  against  last  year.
-call  frequency   ratio.
-call per day.
-order  call  ratio.
-average  sales  percall.
-average  expenses  per call.
-average  order size.
-sales  coverage  index.
etc etc
-------------------------------------
2.QUALITITATIVE   COULD INCLUDE
-product knowledge index.
-customer knowledge  index.
-level  of  customer  satisfaction  index.
-monthly  reports index
etcetc
================================================
20.WHAT  THE SALES  MANAGEMENT  WANTS  FROM THE  FIELD  REPORT

THE  FOLLOWING  REPORTS  COULD  BE  GENERATED  BY
THE  FIELD  SALESFORCE.
===========================================
1.SUMMARY OF   THE  ECONOMIC  SITUATION  IN THE  TERRITORY.
[gives  the  reader, a quick  glance  of  the  economic  condition  in the  respective
territory]
------------------------------------------------------------------------------------
2.SUMMARY OF   THE  INDUSTRY   SITUATION  IN THE  TERRITORY.
[gives  the  reader, a quick  glance  of  the  INDUSTRY  condition  in the  respective
territory ---PROBLEMS/ PROSPECTS]
----------------------------------------------------------------------------------------
3.SUMMARY OF   THE  COMPETITIVE   SITUATION  IN THE  TERRITORY.
[gives  the  reader, a quick  glance  of  the  competitive  condition  in the  respective
territory,  like
*any  competitons'  promotions.
*any  new  competition  pricing  tactics.
*any  new  channel  developments
*any  new  reseller appointments
*any  new  sales  reps.  appointment
*any  new  product release  by  competition.
etc etc
-----------------------------------------------------------------------  
4.SUMMARY OF   THE  CUSTOMERS'  SITUATION  IN THE  TERRITORY.
[gives  the  reader, a quick  glance  of  the  customers'  condition  in the  respective
territory,  like
*any   significant  changes  within  the  current  customers,  which  could
affect  the   sales --positive/ negative
*any   new  customers  added  to  the  company  list.
*any  new  prospects   contacted/ potential / opportunities/  probability  of  success.
etc etc
-------------------------------------------------------------------------------------
5.SUMMARY OF   THE  RESELLERS'  SITUATION  IN THE  TERRITORY.
[gives  the  reader, a quick  glance  of  the  RESELLERS   condition  in the  respective
territory, like
*current  satisfaction level
*new  requirements
*product  sales  trends
etc etc
------------------------------------------------------------------------------
6.SUMMARY OF   THE  CUSTOMERS'  SITUATION  IN THE  TERRITORY.
[gives  the  reader, a quick  glance  of  the  customers'  situation  in the  respective
territory,  like
*current  customer  satisfaction.
*any  new demand  by  customers
etc etc
--------------------------------------------------------------
7.SUMMARY OF   THE  SALES  SUPPORT   SITUATION  IN THE  TERRITORY.
[gives  the  reader, a quick  glance  of  the sales support  situation   in the  respective
territory,  like
-Sales  Promotions  
-Sales  support
-Sales  training  
-Pricing  review
etc  etc
=============================================================
8.SUMMARY OF   THE  TERRITORY   TREND/  REQUIREMENTS   IN THE  TERRITORY.
[gives  the  reader, a quick  glance  of  the  TERRITORY  REUIREMENTS  in the  respective
territory]

What industry trends could affect your business? Economic trends? Cultural trends?
How  do  you  plan  to  manage  these  factors.

What might get in the your way? If possible, present these obstacles as opportunities
instead of problems. How will the business address them?

How will your potential customers learn about  MORE  your product?

How  will  you  increase  the  average  order  size  in  your  territory by  15%

What training will the sales force need? How will that training be addressed?

What materials (e.g., brochures, selling aids, prototypes) will the sales force need?

How will you promote your product   more   effectively?
=================================================


21.WHAT  THE  SALES  DEVELOPMENT  ELEMENTS
OF  INTEREST  TO  THE  SALES  MANAGEMENT.

1.How  do  we  develop  the  sales?

-by  selling  more products  to  the  current  customers.
-by  selling  new products  to  the  current  customers.
-by  selling  current  products  to  the  new  customers.
-by  selling  new  products  to  the  new  customers.
-by  developing  new   products
-by  entering  /  selling  in  new  markets
-by  increasing  market  coverage
-by  increasing  customer  coverage
-by  increasing  product  coverage
-by  increasing  product  range.
========================================


NOW    THE   SALES  MANAGERS   PREPARE   THE  SALES  PLAN  FOR  12 MONTHS
SALES  REVIEW   SYSTEM

1.REVIEW  THE  LAST 12  SALES  PERFORMANCE.
-Sales  review
-Customers  Sales review
-Market review
-Sales Policies  review
-Products Performance reveiw
-Distribution  review
-Customer review
-Reseller [ trade review ]
-Sales  Organization review
-Territories Sales review
-Sales  Promotions  review
-Sales  support review
-Sales  training  review
-Competition review
-Pricing  review
=============================================================

THE  SALES  PLANNING  SYSTEM
2.Based  on the  analysis /  review, you develop the  sales  plan
for  the  next 12  months.
1.Your Company  Mission Statement.
2.Your  Products/ Service  
3.Total Market  size  potential [ how big in the next 12 months]
4.Your  company  marketing  Objectives.
5.Your  market  share  forecast.
6.Your  sales  forecast.
7.Your  Competitive  positioning
8.Which  are  your  market segments, you  are going  to focus.
9.Your  sales  organization-structure / positions/ process.
10.Your  major  customers [ current / new  prospects ]
11.Your sales  targets by  customers / territories.
12.Target Market(s)
What categories of buyers will you target? For example: banks,
 Why? Where are those customers located?
13.What Motivates Those Buyers
Describe the product or service in terms of the benefits it provides the
customer. Why should they buy your product or service? Buyers are
motivated by benefits (e.g., convenience, status, time savings,
cost reduction, etc.), not products and services.
14. Matching  Competitors
Don’t assume that your products and services are so superior that you can
discount the competition. An honest assessment of your primary competitors’
strengths and weaknesses make your business plan more credible.
Describe your competition from the customer’s perspective. What strengths
does the competition have in the eyes of the marketplace?
How will your business compete effectively?
15. What is  positioning strategy
    1.  Price—Base it on how much the market is willing to pay for the product
1   or service, not on how much it costs the business to manufacture and sell it.
2   Management style—Fast and aggressive or slower and cautious?
3   Product quality—High-priced, high-quality for a niche market or low-priced,
4   adequate-quality that can capture a large market share?
16.Trends
What industry trends could affect your business? Economic trends? Cultural trends?
How  do  you  plan  to  manage  these  factors.

17.Obstacles and Opportunities
What might get in the your way? If possible, present these obstacles as opportunities
instead of problems. How will the business address them?

18.Selling Methods
How will your potential customers learn about your product?
If you plan to use your own sales force, how many salespeople will you need
to meet your goals? How many sales calls do you estimate that it will take to
make a sale? How large will the average order be?
How will you keep your sales costs down? Many businesses have moved away
from a traditional in-house sales force and have become increasingly reliant
on direct mail, telemarketing, and seminars to sell products and services.
19.Supporting the Sales
What training will the sales force need? How will that training be addressed?
What materials (e.g., brochures, selling aids, prototypes) will the sales force need?
What incentives will you offer the sales force? These incentives must be
structured properly and explained clearly in order to be effective.
20.Product Promotion
How will you promote your product? Through advertising? Public relations? The press?

CHECKLIST SALES PLANNING AND FORECASTING

Set company key objectives      Notes        Action

Set sales division subsiWiary operating objectives

Decide on forecast period:

• short term

• medium term

• long term

Check sources of data relevant to forecasting and planning exercise:

• internal:
historical sales
volumes
-   values
-      month by month
-     by product
-     by territory
-     by customer
-     by geographical
-   or functional level or job

• external:   individual performance of competitors
-   total market for the products by volume orvalue
-     published  economic data on expenditure on the
-   product or related product groups or categories

Develop sales forecasts at macro and

micro levels by:
productvolumes
product sales values
month by month
customer or user
territory
geographical management control area and functional position (e.g. key accounts) market sector

Consider:

Market knowledge
-   economic factors (interest rates, employment levels, disposable incomes, market price  movements, inflation, production, distribution, exchange rates)
-      demographic factors (including population shifts and
changes in age/sex profiles and ratios)
-   legislative'and regulatory changes
-     political environment
-     distribution channel developments
-     import/export markets
-     market trends and changes in product preference patterns
-     seasonal or cyclical  market trends


Checklist Sales planning and forecasting (contd.)

 user attitudes Perceptions and
Expectations   Notes    Action
- competitive prices and pricing parameters      
- competitive current and potential new      
products, and competitive market      
positioning and strategies      
company resources      
- plant and production and any other      
capacity limitations      
- availability of raw materials and other      
Inputs      
- factory labour markets and labour      
Resources      
- personnel recruitment and training      
lead times      
- financial resources and limitations      
- research developments (new      
innovations and technology, in-house      
company research programmes,      
I ready made'new products, longer-term      
new products and developments)      
- sales force resources      
- marketing support (advertising and      
promotions)      
Budget sales force operating costs and      
expenses, including:      
wages and salaries      
Expenses      
department operating costs      
Vehicles      
sales aids and promotional materials      
promotional activity and any pricing      
rebates or discounts within sales force      
Control      
Plan sales force forward staffing levels,      
taking account of:      
• sources and recruitment lead times      
• training needs and lead times      
management needs      
changes in the needs and mix of skills,      
experience, characteristics, etc.      
Develop profit contribution forecasts by:      
• customer      
• territory      
• geographical or functional management      
control area or level      
Set specific objectives for each      
geographical or functional level of the sales      
organisation, and for each customer      


SALES  ANALYSIS   MEANS   REVIEWING  THE  PERFORMANCE
OF SALES  WITH RESPECT TO ALL FACTORS   ASSOCIATED
WITH  THE SALES.
1.TOTAL  ACTUAL  SALES  VS  BUDGET [TARGET ]   
what  is  your  sales  performance  by  month?
col 1 [ month ] /  col 2 actual sales / col 3  budget/  +/_ variances
----------------------------------------------------------------------------------
2. SALES  BY  PRODUCT  GROUP
what  is  your  sales  performance  by  product group?
col 1 [ product ]/  col 2 actual sales / col 3 budget / +_ variances
-----------------------------------------------------------------------
3.SALES  BY   TERRITORY
what  is  your  sales  performance  by  individual territory?
col 1 [ territory ]/  col 2 actual sales / col 3 budget / +_ variances
-----------------------------------------------------------------------------------
4.SALES  BY   CUSTOMERS
what  is  your  sales  performance  by  individual  customers?
col 1 [ customers ]/  col 2 actual sales / col 3 budget / +_ variances
---------------------------------------------------------------------------
5. SALES  BY   REGION
what  is  your  sales  performance  by  region?
col 1 [ region ]/  col 2 actual sales / col 3 budget / +_ variances
---------------------------------------------------------------------------------------------------------------
6. MARKET  SIZE  BY  MONTHS
what  is  the market size  by  months ?
col 1 [ month ] /  col 2  estimate  market size  
---------------------------------------------------------------------------------------
6. MARKET  SHARE   BY  MONTHS
what  is  the market share   by  months ?
col 1 [ month ] /  col 2  estimate  market size/ col 3  actual sales / col 4 market share   

SALES  ANALYSIS   MEANS   REVIEWING  THE  PERFORMANCE
OF SALES  WITH RESPECT TO ALL FACTORS   ASSOCIATED
WITH  THE SALES.
1.TOTAL  ACTUAL  SALES  VS  BUDGET [TARGET ]   
what  is  your  sales  performance  by  month?
col 1 [ month ] /  col 2 actual sales / col 3  budget/  +/_ variances
----------------------------------------------------------------------------------
2. SALES  BY  PRODUCT  GROUP
what  is  your  sales  performance  by  product group?
col 1 [ product ]/  col 2 actual sales / col 3 budget / +_ variances
-----------------------------------------------------------------------
3.SALES  BY   TERRITORY
what  is  your  sales  performance  by  individual territory?
col 1 [ territory ]/  col 2 actual sales / col 3 budget / +_ variances
-----------------------------------------------------------------------------------
4.SALES  BY   CUSTOMERS
what  is  your  sales  performance  by  individual  customers?
col 1 [ customers ]/  col 2 actual sales / col 3 budget / +_ variances
---------------------------------------------------------------------------
5. SALES  BY   REGION
what  is  your  sales  performance  by  region?
col 1 [ region ]/  col 2 actual sales / col 3 budget / +_ variances
---------------------------------------------------------------------------------------------------------------
6. MARKET  SIZE  BY  MONTHS
what  is  the market size  by  months ?
col 1 [ month ] /  col 2  estimate  market size  
---------------------------------------------------------------------------------------
6. MARKET  SHARE   BY  MONTHS
what  is  the market share   by  months ?
col 1 [ month ] /  col 2  estimate  market size/ col 3  actual sales / col 4 market share   

IN THIS  WAY, YOU  CAN  ANALYSE  THE  SALES.
I  HAVE  GIVEN  YOU  SOME  EXAMPLES.
IF  I  KNOW YOUR  PRODUCT / MARKET,  I CAN SHOW
YOU  MORE  EXAMPLE.






THIS   IS   A   SIMPLE  APPROACH  TO  SALES  PLANNING.
I F   YOU   ANSWER  THE   QUESTIONS  BELOW, YOU WILL  HAVE
AN  EFFECTIVE  SALES  PLAN.

SALES  PLANNING  SYSTEM

1.REVIEW  THE  LAST 12  SALES  PERFORMANCE.
-Sales  review
-Customers  Sales review
-Market review
-Sales Policies  review
-Products Performance reveiw
-Distribution  review
-Customer review
-Reseller [ trade review ]
-Sales  Organization review
-Territories Sales review
-Sales Force review
-Sales  management review
-Sales  Promotions  review
-Sales  support review
-Sales  training  review
-Competition review
-Pricing  review
=============================================================
2.Based  on the  analysis /  review, you develop the  sales  plan
for  the  next 12  months.
1.Your Company  Mission Statement.
2.Your  Products/ Service  
3.Total Market  size  potential [ how big in the next 12 months]
4.Your  company  marketing  Objectives.
5.Your  market  share  forecast.
6.Your  sales  forecast.
7.Your  Competitive  positioning
8.Which  are  your  market segments, you  are going  to focus.
9.Your  sales  organization-structure / positions/ process.
10.Your  major  customers [ current / new  prospects ]
11.Your sales  targets by  customers / territories.
12.Target Market(s)
What categories of buyers will you target? For example: banks,
 Why? Where are those customers located?
13.What Motivates Those Buyers
Describe the product or service in terms of the benefits it provides the
customer. Why should they buy your product or service? Buyers are
motivated by benefits (e.g., convenience, status, time savings,
cost reduction, etc.), not products and services.
14. Matching  Competitors
Don’t assume that your products and services are so superior that you can
discount the competition. An honest assessment of your primary competitors’
strengths and weaknesses make your business plan more credible.
Describe your competition from the customer’s perspective. What strengths
does the competition have in the eyes of the marketplace?
How will your business compete effectively?
15. What is  positioning strategy
    1.  Price—Base it on how much the market is willing to pay for the product
1   or service, not on how much it costs the business to manufacture and sell it.
2   Management style—Fast and aggressive or slower and cautious?
3   Product quality—High-priced, high-quality for a niche market or low-priced,
4   adequate-quality that can capture a large market share?
16.Trends
What industry trends could affect your business? Economic trends? Cultural trends?
How  do  you  plan  to  manage  these  factors.

17.Obstacles and Opportunities
What might get in the your way? If possible, present these obstacles as opportunities
instead of problems. How will the business address them?

18.Selling Methods
How will your potential customers learn about your product?
If you plan to use your own sales force, how many salespeople will you need
to meet your goals? How many sales calls do you estimate that it will take to
make a sale? How large will the average order be?
How will you keep your sales costs down? Many businesses have moved away
from a traditional in-house sales force and have become increasingly reliant
on direct mail, telemarketing, and seminars to sell products and services.
19.Supporting the Sales Force
What training will the sales force need? How will that training be addressed?
What materials (e.g., brochures, selling aids, prototypes) will the sales force need?
What incentives will you offer the sales force? These incentives must be
structured properly and explained clearly in order to be effective.
20.Product Promotion
How will you promote your product? Through advertising? Public relations? The press?
#############################################################




Building a Winning Sales Plan in 10 Steps
1.   Summarize Your Objectives
2.   Identify the Strategic Objectives
3.   Assess Prior Sales Performance
4.   Segment Your Customers
5.   Set This Year's Objectives
6.   Develop Territories Action Plans
7.   Develop Key Accounts Plans
8.   Measure and Monitoring Results
9.   Establish your Annual Sales Planning Cycle
10.   Write the Executive Summary
________________________________________


The Sales Planning Guide for the Sales Manager

The purpose of this Sales Plan Guide is to serve as your guide in your role as Sales Manager. This model provides you with a number of sales management planning ideas and a variety of operating templates that can be used by you and your Sales Representatives in preparing your operating Sales Plan for this year.

This Sales Plan Guide is meant to be used consistently throughout the year as both a planning and as a monitoring tool. The ultimate intent of the comments and the templates that have been provided in this guide is to empower you to build a useful and proactive business plan that will consistently assist you in your overall sales planning during this year. The real purpose here is to assist you in the process of writing a productive sales plan that will actually be used by you and your Sales Representatives in the real world. Clearly the expectation is that this guide will become a highly productive planning and monitoring tool and will not be viewed merely as a series of tables and graphs to be filled in without direct impact to your business. The other important advantage to using this sales planning model is that it is also expected that your resulting Sales Plan will be used as an effective communications tool to the other departments in your company that work closely with Sales. In this way, everyone is kept aware of your sales plans and should be able to assist you in the successful completion of the company's objectives.

It is important that this document be seen and used as a guide. You should feel free to change and modify any of these templates to fit the specific needs and requirements of your own therapeutic area. In the majority of cases, templates and terminology have been used that are sufficiently generic so that they can be modified to meet as many different needs as possible.

There are three primary sections to the Sales Plan:
1.   Understand Your Sales Objectives
2.   Develop Your Action Plans
o   Rep Territory Plans
o   Rep Key Account Plans
3.   Measure and Report Your Results
Within these three sections are a total of ten components that follow the sales planning requirements for the overall year.

The next page outlines how the Sales Plan that you will develop fits into the overall planning requirements of the business.



Section 1: Understand Your Sales Objectives

1. Identify the Sales objectives:

Objective of this section: To present an overview of your company's sales objectives as they are defined in your objectives.

This introductory section of your Sales Plan requires you to identify the specific overall sales objectives as reflected in the annual business plan. The purpose of this exercise is to ensure that you clearly understand the sales requirements of the business plan on a quarterly basis and the company's overall business planning objectives.

The template that is on the next page is a generic table that should be modified and filled in to reflect the specific definitions of your own products. This particular template defines the quarterly sales objectives for four products in terms of sales revenue, units and market share. In fact, you may have just one product and additional objectives that you monitor.

Hints:
•   Be as inclusive of additional categories as possible rather than exclusive and limiting.
•   This is a table that should be widely communicated among your individual Sales Representatives so add any comments and notes that would be helpful.
Objectives:

Modify this template to fit your own requirements and fill in the Sales Revenue numbers, the unit Sales numbers and the market share percentages by quarter.
Category   Q1   Q2   Q3   Q4   Total
         
Total Sales   $   $   $   $   $
         
Sales of ______(product)          
Unit Sales of __(product)          
Sales of ______(product)          
Unit Sales of __(product)          
Sales of ______(product)          
Unit Sales of __(product)          
Sales of ______(product)          
Unit Sales of __(product)          
         
Market Share   %   %   %   %   %
Market Share   %   %   %   %   %
Market Share   %   %   %   %   %
Market Share   %   %   %   %   %
         


2.0 Identify the other sales objectives in the business plan

Objective of this section:  In addition to the sales revenue, sales units and market share percentages that you have outlined above, you should clearly define any specific objectives of the company's business plan that relate directly to sales performance or sales tactics that will be required from you and your Sales Representatives this year.

Examples of company level objectives whose success relies on Sales could be...
•   a specific sales penetration plan for a specific market segment.
•   a specific sales plan to expand the customer base
•   the introduction of a new sales channel into the market.
•   the introduction of a new business partner into the sales channels.
•   the adoption of a new sales strategy such as "Treat High, Treat Early".
The question that needs to be answered here is...

Are their new company wide strategies that rely on the successful execution of your Sales Representatives?

Describe briefly any additional primary business plan objectives that rely directly on the successful performance of the Sales Department during this year.

Hints:
•  Be as inclusive as possible in this listing since it gives you a strong indicator of the type of strategies and longer-term initiatives that the company is planning to execute.
•  As the year develops, these objectives should be added to and modified as senior management develops new strategic initiatives. We recommend that this table be updated at the beginning of each quarter.
•  This is a table that should be widely communicated among your individual Sales Representatives so add any comments and notes that would be helpful.

Other Sales-directed BUSINESS PLAN Objectives
•  Objective:
•  Objective:
•  Objective:
•  Objective:
•  Objective:
•  Objective:


3.0 Summarize the existing sales performance

Objective of this section: To present the sales data that identifies...

(1) the historical sales performance during the past one to three years depending on the specific performance criteria, and...

(2) the current sales performance.

This intent of this section is to help understand the current perspective of the sales and market share performance of the company.

Outlined below are a number of trend graphs that need to be completed by you as part of the pre planning process. The information displayed in these graphs should set the stage that will enable you to set this year's objectives. What you are doing here is to show the data that firmly establishes the sales performance baselines. During the year, you will monitor performance against this baseline and, of course, against this year's objectives.

Outlined below are specific sales performance templates of graphs and tables that should be modified to reflect your own products and the types of objectives that you report.


Total Net Sales: 3 years history / this year's BUSINESS PLAN

The first graph outlines total net sales (in this example by dollars) for the prior three years with the current BUSINESS PLAN projection of sales for 2001-2002.



Having displayed in the prior graph a baseline of historical annual performance and compared this to this year's BUSINESS PLAN objective, this next graph would display the prior year's sales performance by quarter compared to the sales plan objectives. The use of this data is to graphically show you how the sales results have trended during the prior year and provide you






•    It is recommended that you would add a brief paragraph following this chart that would briefly comment on the prior year's sales results by quarter.
•   It is recommended that the same type of quarterly trend graph with additional comments be created for each product in your sales plan.
•   It is recommended that each of your Sales Representatives would create similar quarterly trend graphs for each of their own territories.


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Sales & Sales Management

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Leo Lingham

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Any questions around sales, sales planning, sales development, sales management, sales auditing, sales strategy, salesforce management, selling skills, sales training , psychology in selling, etc.

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18 years in working management covering business planning,
strategic planning, marketing and sales management, management
service, organization development etc

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24 years in management consulting covering business planning,
strategic planning, business developemnt, business coaching,
marketing, product management etc

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