INTRODUCTION TO SALES PLANNING
In the starting of sales, sales preparation is done as it is the assumption for making merchandising actions effectual and efficient. In various cases, sales planing shows a crucial function in enhancing marketing of goods and services of an firm. Moreover, promotional activities are the driving forces for selling any product or service. One of the main challenges for marketing manager is to enhance the sales of commodity or services and thus, these challenges can be usually defeat by planning the sales operations and promotion (Honey, Ford and Simintiras, 2003).
In the current study, the undertaken organization is AVON Products Inc. which is famous as an American international manufacturer and direct selling organization in beauty, household and personal care categories. It is the fifth largest beauty company and second largest direct selling firm around the globe. Adopting this company is one of the best examples for the establishment and improvement of sales planning and promotional activities (Hoyer and Maclnnis, 2012). Furthermore, the sales team of Avon company mainly focuses on developing good customer relationship and on attaining the desired results.
Personalized merchandising can be represented as a formal, paid for, personal demonstration of services or products to a customer in order to convenience them to purchase a product. Therefore, personal selling assists business in enhancing the sales of organization. However, personal selling includes four activities such personal selling, sales promotion, public relation and publicity. However, among these four, personal selling assists promotion mix effectively. Also, there are various organizations such as banking, financial institutions and certain manufacturing companies that are more concerned about the promotional mix particularly personal selling. There are certain ways through which personal selling supports promotion mix are personal interaction, two way connection, effective relationship and many more (Johnston and Marshall, 2013). Therefore, in terms of personal selling, a sales individual requires various personalized traits like good communication power, loyalty and proper leading presentation etc. that supports the promotion mix up to a great extent.
Personal selling includes a selling process which starts from searching and identifying prospecting customers for a particular product or service. Likewise, here, Avon Company can appoint a sales person in order to directly communicate with clients and to develop relationship so that sales of beauty products can be enhanced. Further, in the pre approach stage, it is essential for the sales person to gather the information and also to make planning for approaching the prospect. In the need identification step, the salesperson identifies the need of prospects buyer and also knows about what does they desire to purchase. Another step is the presentation in which the salesperson begins converting the prospect into a buyer through describing features of the product or service (Noonan, 2010). In the handling objections step, when the purchaser decides not to purchase the commodity or service, at that time the salesperson must be much capable to know the reason behind it and thus, in handling the objections effectively. At last, closing sale is the step where a salesperson obtains a sale of a product or service and satisfies the need of customers as well.
Here, the term buyer behaviour states that the behaviour and attitude of customer in terms of purchasing the goods and services. Therefore, it can be stated that buyer behaviour of distinct organizations is shaped as different. For instance, it can be compared between the buying behaviour between Avon cosmetics and another fast food company. However, in case of cited organization, the clients specially are the women that are demanding from several years that sales individual should come to their door step with the required cosmetic product at certain fix time so that needs can be satisfied. Furthermore, consumers makes various types of buying judgements in their day to day lives. Firstly, it is essential for consumers to determine their purchasing priorities and thus, to know how much money is to be allocated for different products or services (Noroozi and Wikner, 2013).
According to the varied steps of decision making process, clients passes through every step while buying the goods. The first step includes problem recognition that states that the buyer decision process which starts when a need or a problem occurs. Another step, is information search which means that consumers searches the information and knowledge about the particular product or service through various sources such as online, friends and family etc. Next step is the evaluation of alternatives which starts when the information has been gathered by the client to evaluate the different sources by adopting an evaluation criterion. The purchase decision is made by consumer when they selects a product from a variety of products (Leon, 2014). Furthermore, there are various factors that influences the purchase decision. In the last step, post purchase behaviour defines that the clients has done his purchase, later he/she comes to know about the quality of the product and thus it affects the later buying decisions..
It is essential for every organization to implement effective sales team in order to promote the sales and other promotional actions to attain selling objectives. Furthermore, the selling team of company mainly states that it plays a crucial role in developing effective relationship with clients in a varied manner. Sales team also plays an effectual role in developing good connection with retailers who can frequently purchase new beauty related goods. Here, the main purpose of cited company to grab the necessary information and knowledge from various retailers about the products so that business can enhance their marketing strategy and help in attaining results. The sales team of Avon also uses ICT in order to keep the overall transaction of sales (Bichou, 2014). Using information and communication technology in business helps in sending information to others and that helps in ensuring the inflow and outflow of sales information. It also assists in keeping the sales record and also to maintain connection among different members of sales team and for attaining desired results as well.
The sales strategies of company are effectually formed through keeping in mind the already set goals of company so that results can be achieved. Further, the corporate objectives of cited firm state the aim of business in a particular way in order to attain actions and to accomplish the desired mission. The sales strategies of Avon are various planned approaches that has designed in order to increase the sales order in order to attain sales targets of business. The sales tactics of Avon Company facilitates in enhancing faithfulness from clients and also enhances the sales and profitability in order to attain desired goals (Wortzel, 2015).
Furthermore, these sales tactics are planned in such form keeping in mind the earlier made corporate objectives which reflects in them and trying to meet the requirements of clients. However, sometimes consumers get confused between the company's goals and objectives. Therefore, organization clearly states the difference between two. Thus, it can be stated that the way by which company develops its sales strategies in line with its corporate objectives. Moreover, the sales tactics of company are also framed through analysing the market research and survey of different goods and services. Furthermore, competitor's current business tactics are developed in relation of the corporate objectives of firm. Usually sales strategies are emphasized at corporate level in order to develop market segmentation, targeting and positioning. Thus, business strategies are formed in order to provide the direction so that set goals can be attained (Longnecker, 2011).
Recruitment and selection process in a sales team are set of pre-assumption in order to sales objectives of the company. Sales recruitments should be done effectively as it differs from normal recruitment. The significance of recruitment and selection process in sales team should be done effectively so that they can convenience customers about the product and thus increase the sales of company. The ultimate success of the Avon comes out true by way of sales and sales development. For instance, if business does not ensure the sales and sales development of company than the total efforts go in waste. Therefore, recruitment and selection of staff assists business in receiving employees with right skills and knowledge so that it aids the sales team to attain success (Li and et. al., 2014).
In order to recognize the value of recruitment and selection in a sales group, it plays a vital role. For instance, sales team are the key people to meet the organizational goals. Thus, they help in increasing the sales and revenues of company. Furthermore, Avon is required to select and recruit right person for the job and thus, rejects the wrong candidates aiming the sales targets. Also, the company hires and retains satisfied employees so that they can be capable and competent so that organization can attain desired goals (Lyus, Rogers and Simms, 2008). However, fair and perfect recruitment and selection procedures enhances the reputation of company to a greater extent.
It can be analysed that the role of motivation, remuneration and training in sales management of a firm which are as follows-
Motivation- Here, the main role is played by HR manager therefore, they should be held responsible in order to assign and encourage the staff of sales team of Avon Company. Therefore, the engagement of sales manager is really important as he knows that what elements can help in motivating the associates of sales team. As motivation is the key factor that assists the business to direct the employees towards their stated goals (Oliva and Watson, 2011). Also, motivation has an effective role that affects the sales performance of business either it be a sales individual or the whole group. Taking action in order to improve the sales volume helps employees in attaining desired goals.
Training- Involvement of sales managers is also crucial in order to train the workers who are going to execute the ultimate selling purpose of business. However, the sales manager understands the problem that might be faced by employees while carrying out the sales. Therefore, proper training is required to be delivered to employees so that they can attain desired results. Training is basically a process of acquiring skills and knowledge as as result of attaining specific job. Providing training to sales people helps them to acquire necessary skills in order to perform their tasks professionally (Tavares Thomé and et, al., 2012).
Remuneration- It is one of the crucial reason that why people of the organization are going to work effectively. Avon is required to plan the remuneration for sales team so that they get motivated and perform the best results in organization. The sales manager should effectively train their sales team so that they can perform their operations well and attain desired targets. Sales manager are required to assure that the wage packages is the right technique to motivate the right people. It can be done through praise and acknowledgement, compensation and advancement and so on (Thome, Sousa and Carmo, 2014).
Sales management assists business to organise the activities for an business through adopting various tactics in order to control the sales output of cited organisation and thus depends on its effective elements i.e. size, location and volume of particular products. Furthermore, in order to make the producrts of the company famous they can organise trade fair and shows so that they can attract various clients and also receive feedback from clients. Basically, sales output is operated under a particular individual who will be held responsible for any mismanagement in the output the they will be awarded for effectively completion of particular objectives (Kjellsdotter Ivert and Jonsson, 2014). The sales manager of Avon Company is required to plan the sale at an exhibition like trade fair or trade show where only few businesses takes parts in order to attract customers and inform them about the products of firm.
Furthermore, there are two techniques which are sales output control and language that assists in controlling the sales output. Sales output control can be automatically or manually devised in the sales papers. The sales output can be controlled by business through using various methods like billing type, sales order, delivery type. Another technique that can be adopted by cited organization is language that helps in maintaining automatic output determination. For instance, language offers the flexibility in order to control the keys in sales papers (Estampe and et.al., 2013).
As per the era of globalisation, the sales department of every organization especially large businesses like Avon is required to have databases for booming and effectual administration of sales. Beside, effectual sales administration the use of databases may benefits the business in order to attain desired goals. The database may effectively help manages all the collection about clients and designs and delivers the commodity as per the requirement of individual. This information may aid business to ascertain and make adequate individuals to accomplish the desired goals. As well this, the database provides relevant information about the purchasing trend of clients that helps customers to enhance the sales performance of company. It also saves the time of firm and increases their efficiency by using such methods over manual methods (Kopanos, Puigjaner and Georgiadis, 2012).
The usage of stored information plays a crucial role in managing sales plays a significant role in storing and assessing knowledge of sales volume in develop effective system to attain desired results. Database management is very crucial to keep the sales actions in order to calculate the annual sales turnover of company. Sales team adopts various software that helps them to record and store the information that assist the sales manager of cited company to manage the sales team and record all the necessary information and data in order to grow the business and to attain results as well (Färber and et.al., 2012).
It is essential for business to introduce a plan with motive to increase sales for Avon Company which is dealing in manufacturing and producing beauty products for ladies especially. Nest step is of analysing the current market position through starting the operations of business in varied markets in order to promote their beauty products and attract potential customers. Also, it is essential for management to plan the pricing strategy of Avon beauty products so that competitors can be given with tough competition. However, Avon is required to create sales plan by considering the geographical area in order to promote their beauty products like face creams, body lotions and many more. Furthermore, enterprise has to search for suitable area for introducing new commodity and to enhance the market share. Business should evaluate the needs of target market and thus, provide them effective products so that needs can be fulfilled (Markgraf, 2014). Thus, by considering all these steps, business will be generating high revenues.
Also, it is crucial for business to launch the product through proper advertising channel like social media or billboards etc. to attract clients. Therefore, it is essential for business to plan the business activities in different trade fair and exhibition shows in order to promote their beauty products to women. Furthermore, business should set targets for the sales team in order to create plans accordingly (Umble, 2003). Following are the steps involved in developing a sales plan-
Setting Goal- Business is required to set the goals that it will enhance the sales volume of beauty products by 15% within next year.
Sales Objectives- The sales can be enhanced through cross selling and thus, attracting potential customers in business (Johnston and Marshall, 2013).
Strategies- Company is needed to recruit more staff members in marketing team in order to develop the effective advertisements for the beauty products. Also, it is necessary for firm to grow its market size in developing countries like India and China with the help of strategic alliance, mergers and acquisitions (Hoyer and Maclnnis, 2012).
Actions- Avon Company is required to appoint sales manager in order to grow the market share and size. Also, management can segment its market on the basis of demography that can help sales members to target new and existing market. Furthermore, business should focus on various trade fair and exhibitions (Lyus, Rogers and Simms, 2008).
Budget Section- Here, the detailed financial and human resources will be identified that needs to attain sales targets.
Time Frame- In this, Avon Company will represent the bar chart with details of scheduling the activities so that expected sales can be attained within next year (Li and et. al., 2014).
Different type of opportunities are present as per the growing demand of beauty products in the market among working class women. Also, working class women requires business to develop effective marketing strategies and assists the company to provide products at their doorstep. The demand of beauty products of Avon Company is going to rise in many countries of world especially in developed and developing countries where rate of interest in users is also rising at faster pace. Besides this, business is delivering the products to customers through websites so that they can effectively serve customers around the globe. Furthermore, there are ample of opportunities for business to sell at global level. For instance, different customers from various countries wants to use the products at different locations. Customers from different countries may be bored while using similar products of their country therefore, they choose regional integration which is rising day by day and thus, the products and services of country is getting access at global level (Longnecker, 2011).
There are several prospects which are available to Avon Company to promote their products in international market. These are as follows-
Developing marketplace- There is a chance with company to focus on developing the marketplace so that business can enhance its location and thus, increases the sales of company. Adopting such technique firm will be able to develop its operations through choosing international market for selling their products or services (Honey, Ford and Simintiras, 2003).
Attracting customers- Company can attract different customers through entering in a new market and by increasing the business opportunities. It helps the enterprise to enhance the business and for increasing profitability of firm as well.
Agreement with varied countries- As there are differences in policies and strategies of different countries therefore, business should adopt the policies and tactics of particular country where they are operating their business activities (Noroozi and Wikner, 2013).
International selling/ exhibition- Through participating in such type of fairs entity can expand the operations in global market and thus, increases the sales. It helps company to develop its market share and also increases the customer base of company as well (Tavares Thomé and et.al., 2012).
Main aim behind developing trade fair Trade fair is to let the firms represent their products to general public at a specific place and also in organizing committee to do all the essential things so that visitors can be attracted and also company can attract target customers through acknowledging the product. Every year in UK, various kinds of exhibitions are introduced on beauty products and promotes the sector and also encourages customers to purchase the products. Not only in UK, but in several countries like USA, Germany, Singapore, Japan, India and China etc. are growing and organizing different kinds of exhibitions on beauty products. Thus, it represents a great opportunity for our company to participate in such trade shows and exhibitions and builds direct contact with clients to understand the expectation and update the products accordingly (Wortzel, 2015). Expanding the business operations of Avon Company through launching the beauty products in international market and thus, participating in various exhibitions and trade shows in order to facilitate direct contact with customers and increasing sales helps the firm in earning higher profits to a great extent.
Evaluation of trade show in London- Every year there is a trade show that is organized in London, UK. Therefore, during this period, almost all the fimrs participates and offers new as well as existing products. Many investors, customers and entrepreneurs are an integral part of the trade show. The evaluation of the trade show is as follows-
Facilitation of direct contact- Trade shows helps in facilitating direct contact between company and consumers so that customers can be enhanced. It assists in developing direct relationship between business and company so that desired outputs can be generated (Oliva and Watson, 2011).
Ways of increasing sales- During the trade period, it helps in increasing the sales volume and also in enhancing the profitability of firm.
New potential customers can be recognised- It helps in recognising new and potential customers through the trade show so as to assist the business in attaining clients (Johnston and Marshall, 2013).
Effective promotion and advertisement- Various media channels regularly focuses on the brand of new commodities and services and thus, attract customers towards business.
From the above report, it can be said that sales planning and operations plays a important role that helps in increasing sales volume of the commodities and services of the entity. Furthermore, promotional activities are the dynamic forces in order to increases sales of the business enterprise. One of the biggest challenges that is faced by the managers working in marketing department is to enhance the sales of commodities and services and thus, it is essential for business to overcome with such issues through effective sales planning and promotion. There are different ways through personal selling supports promotion mix i.e. personal interaction, two way communication and better convincing etc. Furthermore, various trade fair and exhibitions provide opportunity to general public to participate in that so that products and services can be promoted effectively.
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