This chapter discusses the importance of sales planning, the sales manager's role as both planner and administrator, and the sales planning process. As a planner, the sales manager is responsible for sales forecasting, setting objectives, developing the sales organization, and preparing budgets. As an administrator, the sales manager supervises the sales team, delegates responsibilities, coordinates activities, and motivates employees. The sales planning process involves setting objectives, analyzing the internal and external environment, determining operations, organizing implementation, measuring results, and reevaluating plans. Accuracy in sales planning depends on factors like the time frame, management involvement, communication, and whether planning is top-down or bottom-up.

1. Chapter 6
Sales planning

2. In this chapter we will
discuss:
 The importance of sales
planning
 Sales manager as planner and
administrator
 The sales planning process
 Causes of unsuccessful sales
planning
 Accuracy of sales planning

3. Introduction
 What for planning?
 What does sales planning do?
 What a sales plan is?
 What is planning process?

4. The importance of sales
planning
1. Better implementation of
corporate plans
2. Provide a sense of direction
3. Focus on realistic objectives
4. Improve coordination
5. Facilitate control
6. Ensure healthy interpersonal
relationships
7. Reduce uncertainty and risk

5. Sales manager as planner
and administrator
 Transformation in the role of sales
manager from aggressive selling
person to planner & administrator
who require more of human and
conceptual skills
 Differences between selling and
managing
 What organization expects from
sales managers?

6. Sales manager as planner
i. Sales forecasting
ii. Developing objectives
iii. Developing the sales
organization
iv. Formulating policies and
procedures
v. Preparing the budget

7. Sales manager as
administrator
i. Supervision
ii. Delegation
iii. Coordination
iv. Motivation
v. Ethical approach
vi. Routing, scheduling, staffing
& training

8. The sales planning
process
 Setting objectives
 Internal situation analysis
 External environment audit
 Determining operations to meet objectives
 Build, Hold, Harvest, Divest
 Organizing for action
 Implementing
 Developing strategies
 coaching
 Measuring results against standards
 Revaluating & control

9. Causes of unsuccessful
sales planning
1. Lack of awareness or
understanding of important
aspects
2. Absence of proper planning
3. Lack of systematic
communication
4. Absence of sales force
involvement

10. Accuracy of sales planning
 Accuracy is of utmost importance
and it depends on time frame
 Plans are more accurate when the
gap between the plan & its
implementation is shorter
 Organizations that have higher
rate of profits tend to have less
plan accuracy as they are too
optimistic

11. Continued ……
 Large organizations are more
accurate than smaller ones
 Top management involvement
increases accuracy
 Bottom up approach is more
accurate than top down
 Extent of communication of
planning elements also
influences accuracy