3.4 - Develop sales strategy
PCF ID: 10103 | Elements: 28 | Metrics Available: Y | Benchmarkable: 6
Definition
Developing concrete plans for guiding and providing support to the sales function. Chart a road map for the sales function, including an analysis of historical sales data to create forecasts for anticipated sales, forming sales targets, forging partnerships with other economic agents to boost sales, devising a budget for this function, and determining metrics to measure customer management activities as well as progress in achieving sales targets.
Overview
This process group covers develop sales strategy within the broader context of Market and Sell Products and Services.
Process Hierarchy
Processes
| ID | Process | PCF ID | Sub-elements | Metrics |
|---|---|---|---|---|
| 3.4.1 | Develop sales forecast | 10129 | 4 | Y |
| 3.4.2 | Develop sales partner/alliance relationships | 10130 | 12 | N |
| 3.4.3 | Establish overall sales budgets | 10131 | 6 | Y |
| 3.4.4 | Establish sales goals and measures | 10132 | 0 | Y |
| 3.4.5 | Establish customer management measures | 10133 | 0 | Y |
3.4.1 - Develop sales forecast
PCF ID: 10129
Definition: Developing a sales forecast for the organization's portfolio of offerings, bearing in mind the effect of promotional events, and fine-tuning these in the context of the new forecast. Estimate the future demand for the organization's products/services by analyzing historical information and any promotional activity.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 3.4.1.1 | Gather current and historic order information | 10134 | 0 | N |
| 3.4.1.2 | Analyze sales trends and patterns | 10135 | 0 | N |
| 3.4.1.3 | Generate sales forecast | 10136 | 0 | N |
| 3.4.1.4 | Analyze historical and planned promotions and events | 10137 | 0 | N |
3.4.1.1 - Gather current and historic order information
Definition: Gathering all information about sales orders into an index. Create a directory of all sales orders, whether open or those which have been fulfilled. Track what product/service was ordered, the quantity ordered, who ordered it, the delivery date, the shipping method, the unit price and line total, payment terms, and any discount applied.
3.4.1.2 - Analyze sales trends and patterns
Definition: Analyzing sales order data to identify patterns in order to capitalize on emerging trends in the industry or the economy. Closely examine the directory of sales orders. Discern any patterns from this index, which is representative of the demand for the organization's offerings. Identify trends among the various segments of the organization's customer base to create forecasts. Glean patterns from this analysis, including the triangulation of segments that are showing the most growth in demand or those that represent the highest decline revenue, industry-wide trends such as decline/boost in overall demand, and any unusual trends that lie outside of the organization's expectations.
3.4.1.3 - Generate sales forecast
Definition: Calculating the future demand for the organization's products/services. Use the trends and patterns identified in the sales data to estimate future demand. Use forecast to prepare for future customer demand and to recalibrate the strategic course of functions and business units.
3.4.1.4 - Analyze historical and planned promotions and events
Definition: Reviewing promotional activities' effect on the sales orders. Analyze all promotional events and campaigns that the organization has already employed or is planning to deploy.
3.4.2 - Develop sales partner/alliance relationships
PCF ID: 10130
Definition: Cultivating an alliance of partners by identifying, analyzing, negotiating, and managing partnerships with other economic agents.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 3.4.2.1 | Identify alliance opportunities | 10138 | 0 | N |
| 3.4.2.2 | Design alliance programs and methods for selecting and managing relationships | 10139 | 0 | N |
| 3.4.2.3 | Select alliances | 10140 | 0 | N |
| 3.4.2.4 | Develop customer trade strategy and customer objectives/targets | 11465 | 0 | N |
| 3.4.2.5 | Define trade programs and funding options | 11521 | 0 | N |
| 3.4.2.6 | Conduct planning activities for major trade customers | 11466 | 0 | N |
| 3.4.2.7 | Develop partner and alliance management strategies | 10141 | 0 | N |
| 3.4.2.8 | Establish partner and alliance management goals | 10142 | 0 | N |
| 3.4.2.9 | Establish partner and alliance agreements | 18629 | 0 | N |
| 3.4.2.10 | Develop promotional and category management calendars (trade marketing calendars) | 11522 | 0 | N |
| 3.4.2.11 | Create strategic and tactical sales plans by customer | 11523 | 0 | N |
| 3.4.2.12 | Communicate planning information to customer teams | 11468 | 0 | N |
3.4.2.1 - Identify alliance opportunities
Definition: Identifying collaboration opportunities for selling, marketing, and distributing the organization's products/services. Determine any scope for partnering with other economic agents, with synergies for the marketing, sales, and/or distribution of the organization's products/services. Identify alliance opportunities that target customer segments who would be interested.
3.4.2.2 - Design alliance programs and methods for selecting and managing relationships
Definition: Creating the frameworks needed to select alliance partners, and maintaining relationships with them. Create a framework for structured programs that can receive and support multiple alliances. Clearly outline the responsibilities and benefits of the alliance partners. Create frameworks for selecting the right alliance partners, and maintain a relationship with them. Create or repurpose teams of relationship managers and outline a methodology for selecting alliance partners.
3.4.2.3 - Select alliances
Definition: Choosing alliance partners using the selected programs and methodology. Select the most feasible and profitable alliance partners, based on Design alliance programs and methods for selecting and managing relationships [10139] and through a careful scrutiny of the potential alliance.
3.4.2.4 - Develop customer trade strategy and customer objectives/targets
Definition: Implementing category management strategies for customers through the use of consumer insights and understanding of customer specifics. Develop consumer and channel insights. Establish long term strategies, objectives and targets across the brand.
3.4.2.5 - Define trade programs and funding options
Definition: Establishing business-to-business marketing campaigns and financial incentives for wholesalers, dealers, distributors and other intermediaries that the company uses to distribute its products or services.
3.4.2.6 - Conduct planning activities for major trade customers
Definition: Arranging meetings with trade partners to coordinate logistics, manage critical resources, resolve bottlenecks, and schedule urgent or time-sensitive matters.
3.4.2.7 - Develop partner and alliance management strategies
Definition: Designing strategies for effectively managing, identifying, and countering any possible issues from the alliance partnerships formed. Create a strategic road map for managing the partnerships forged through Design alliance programs and methods for selecting and managing relationships [10139]. Determine where the alliance partnerships are headed, possible problems or pushback from the partners, how these issues might be countered, how these alliance partnerships would evolve in the future, any other business cases where these partnerships might be deployed, etc.
3.4.2.8 - Establish partner and alliance management goals
Definition: Setting targets for organizational achievement. This includes what the organization aims to achieve from and how it wishes to manage both the individual partners and the alliance as a whole. Set immediate through long-term goals including revenue targets, market penetration, footfall numbers, and geographical coverage.
3.4.2.9 - Establish partner and alliance agreements
Definition: Setting up strategic alliances with key trade partners and ratifying partnership agreements.
3.4.2.10 - Develop promotional and category management calendars (trade marketing calendars)
Definition: Combining scheduled promotional, category management and trade marketing events into unified timetables. Update the calendars. Register new events.
3.4.2.11 - Create strategic and tactical sales plans by customer
Definition: Establishing long term customer sales plans to assess current sales and to determine future sales objectives, strategies for achieving the goals, and available resources.
3.4.2.12 - Communicate planning information to customer teams
Definition: Sending invitations and distributing information about upcoming events to customer teams and other involved entities.
3.4.3 - Establish overall sales budgets
PCF ID: 10131
Definition: Setting up a financial plan for the sales function. Calculate the estimated sales revenue and costs, which helps in calculating the overall net profit. Create a sound plan for resource outlay by comparing the forecast with historical data.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 3.4.3.1 | Calculate product market share | 17682 | 0 | Y |
| 3.4.3.2 | Calculate product revenue | 10143 | 0 | N |
| 3.4.3.3 | Determine variable costs | 10144 | 0 | N |
| 3.4.3.4 | Determine overhead and fixed costs | 10145 | 0 | N |
| 3.4.3.5 | Calculate net profit | 10146 | 0 | N |
| 3.4.3.6 | Create budget | 10147 | 0 | N |
3.4.3.1 - Calculate product market share
Definition: Determining the percentage of total sales volume in the market for a particular product.
3.4.3.2 - Calculate product revenue
Definition: Estimating revenue from the sale of products/services. Approximate the anticipated sale of products/services and multiply it by the selling price of the respective offering. (This represents the total amount of money that the organization receives from the sale of its portfolio of offerings.)
3.4.3.3 - Determine variable costs
Definition: Calculating the variable costs of production. Approximate those costs that depend on the volume of products/services produced by the organization.
3.4.3.4 - Determine overhead and fixed costs
Definition: Calculating the overhead costs associated with selling the organization's products/services. Determine fixed costs that are not directly related to the volume of products/services processed or the sale of these offerings (e.g., expense over machinery and equipment).
3.4.3.5 - Calculate net profit
Definition: Calculating the net income. Calculate the organization's profitability by accounting for Determine overhead and fixed costs [10145] and Determine variable costs [10144].
3.4.3.6 - Create budget
Definition: Creating a plan in measurable terms for the financial outlay that best captures resource allocation for the sales forecast. Consider the outlay of capital, HR, raw materials, and provisions needed to reach sales targets.
3.4.4 - Establish sales goals and measures
PCF ID: 10132
Definition: Establishing specific quantitative and qualitative measures of realizing sales targets. Create sales targets by analyzing historical sales data and comparing the forecasts to results, in light of customer and market intelligence. Examine the performance of sales personnel in light of market opportunities. Based on this review, establish sales targets along with metrics to quantify these goals, corresponding with the overall business strategy.
3.4.5 - Establish customer management measures
PCF ID: 10133
Definition: Identifying the appropriate measures that can represent key attributes of the customer management function. Select measures to track customer activity, feedback, satisfaction, organizational responsiveness to customer needs, and general data on how the organization is managing customer accounts, leads, and contacts. Build on customer and market intelligence to identify metrics gauging aspects related to customer management. Select measures based on the nature of the business, the type and size of customer base, strategic goals, and the model used to structure sales and customer relationships.
Change Summary (v7.2.1 vs v6.1.1)
Changes indicated by:
+XXXXX- New element added-XXXXX- Element removedcXXXXX- Element changedNEW- Newly introduced
Complete Element List with Definitions
All 28 elements
| ID | Name | Definition |
|---|---|---|
| 3.4 | Develop sales strategy | Developing concrete plans for guiding and providing support to the sales function. Chart a road map ... |
| 3.4.1 | Develop sales forecast | Developing a sales forecast for the organization's portfolio of offerings, bearing in mind the effec... |
| 3.4.1.1 | Gather current and historic order inform... | Gathering all information about sales orders into an index. Create a directory of all sales orders, ... |
| 3.4.1.2 | Analyze sales trends and patterns | Analyzing sales order data to identify patterns in order to capitalize on emerging trends in the ind... |
| 3.4.1.3 | Generate sales forecast | Calculating the future demand for the organization's products/services. Use the trends and patterns ... |
| 3.4.1.4 | Analyze historical and planned promotion... | Reviewing promotional activities' effect on the sales orders. Analyze all promotional events and cam... |
| 3.4.2 | Develop sales partner/alliance relations... | Cultivating an alliance of partners by identifying, analyzing, negotiating, and managing partnership... |
| 3.4.2.1 | Identify alliance opportunities | Identifying collaboration opportunities for selling, marketing, and distributing the organization's ... |
| 3.4.2.2 | Design alliance programs and methods for... | Creating the frameworks needed to select alliance partners, and maintaining relationships with them.... |
| 3.4.2.3 | Select alliances | Choosing alliance partners using the selected programs and methodology. Select the most feasible and... |
| 3.4.2.4 | Develop customer trade strategy and cust... | Implementing category management strategies for customers through the use of consumer insights and u... |
| 3.4.2.5 | Define trade programs and funding option... | Establishing business-to-business marketing campaigns and financial incentives for wholesalers, deal... |
| 3.4.2.6 | Conduct planning activities for major tr... | Arranging meetings with trade partners to coordinate logistics, manage critical resources, resolve b... |
| 3.4.2.7 | Develop partner and alliance management ... | Designing strategies for effectively managing, identifying, and countering any possible issues from ... |
| 3.4.2.8 | Establish partner and alliance managemen... | Setting targets for organizational achievement. This includes what the organization aims to achieve ... |
| 3.4.2.9 | Establish partner and alliance agreement... | Setting up strategic alliances with key trade partners and ratifying partnership agreements. |
| 3.4.2.10 | Develop promotional and category managem... | Combining scheduled promotional, category management and trade marketing events into unified timetab... |
| 3.4.2.11 | Create strategic and tactical sales plan... | Establishing long term customer sales plans to assess current sales and to determine future sales ob... |
| 3.4.2.12 | Communicate planning information to cust... | Sending invitations and distributing information about upcoming events to customer teams and other i... |
| 3.4.3 | Establish overall sales budgets | Setting up a financial plan for the sales function. Calculate the estimated sales revenue and costs,... |
| 3.4.3.1 | Calculate product market share | Determining the percentage of total sales volume in the market for a particular product. |
| 3.4.3.2 | Calculate product revenue | Estimating revenue from the sale of products/services. Approximate the anticipated sale of products/... |
| 3.4.3.3 | Determine variable costs | Calculating the variable costs of production. Approximate those costs that depend on the volume of p... |
| 3.4.3.4 | Determine overhead and fixed costs | Calculating the overhead costs associated with selling the organization's products/services. Determi... |
| 3.4.3.5 | Calculate net profit | Calculating the net income. Calculate the organization's profitability by accounting for Determine o... |
| 3.4.3.6 | Create budget | Creating a plan in measurable terms for the financial outlay that best captures resource allocation ... |
| 3.4.4 | Establish sales goals and measures | Establishing specific quantitative and qualitative measures of realizing sales targets. Create sales... |
| 3.4.5 | Establish customer management measures | Identifying the appropriate measures that can represent key attributes of the customer management fu... |
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