The success of any organization depends on its ability to sell its products or services. The profits or revenues earned from sales play an important role in fuelling the growth and development of the business. Intense competition has made it important for companies to draft a suitable and efficient sales strategy. A successful sales strategy proves to be an effective tool in the hands of businesses to ward of and survive competition. The sales strategy employed by a company plays an important role in the success and growth of the company. Lack of a suitable sales strategy can prove to be extremely disastrous for a company. It would lead to an increase in the liability of the company in the form of unsold closing stocks. An effective sales strategy ensures that the goods produced buy the company finds a ready and available market. It brings together the factors of demand and supply thus facilitating equilibrium in the market.
The marketing team of any company basically concentrates on the four P's of a sales strategy. These refer to the product mix, price mix, place mix and promotion mix. Product mix refers to the manufacture of a particular product. The product should be manufactured keeping in mind a number of factors such as consumer requirements, market conditions and availability of substitutes.
Production costs should be minimum while the quality presented should be optimum. Price mix refers to the cost at which the product should be sold. Determining a commodities price plays an important role in its success. It is a scientific procedure, which requires a great deal of planning and consideration. The price of the product should cover all the expenses incurred in its manufacture. At the same time it should also be appealing to the final consumer. Place mix refers to the location in which the product is being introduced and promotion mix refers to the tactics involved in advertising the same.
As such, the following factors need to be considered while planning an effective and successful sales strategy.
