Sales Objectives
Objectives in the sales strategy are usually expressed as unit or monetary sales and are based on objectives stated in the marketing strategies for the products or services being sold. You should state these objectives quantitatively and break them out by product or service and by market. These objectives are the overall sales objectives for the sales manager, who then allocates these objectives among the sales representatives whom they direct.
For example, the annual sales objectives for the sales manager associated with Exhibit 22.2 total $88,000,000. In turn, the sales manager has allocated those objectives among the four sales representatives whom they manage.
TRUMP UNIVERSITY MARKETING 101 Exhibit 22.2 Sales Objectives (in millions)
|
Representative |
A |
B |
C |
Total |
|
1 |
$7 |
$5 |
$2 |
$14 |
|
2 |
12 |
14 |
3 |
29 |
|
3 |
1 G |
9 |
2 |
21 |
|
4 |
9 |
11 |
4 |
24 |
|
Total |
$3a |
$39 |
$11 |
$aa |
Source: "Arrow Guide—Formulating Sales Strategies," The Arrow Group, Ltd., New York, NY, 2008. Used here with permission.
Source: "Arrow Guide—Formulating Sales Strategies," The Arrow Group, Ltd., New York, NY, 2008. Used here with permission.
Real-Estate Sales: Trump International Hotel & Tower, Las Vegas
The 64-story Trump International Hotel & Tower Las Vegas was introduced on The Apprentice, and within a month deposits had been placed on 80 percent of the units. Construction was finished in less than 3 years and the units completely sold out with sales of more than $1.1 billion. Average price per square foot was nearly 25 percent higher and sales velocity (units sold per month) 50 percent higher than competing properties.
"Everybody wants to be in our building," Donald J. Trump explained to Business Week.
Trump International Hotel & Tower, Las Vegas.
Photo courtesy of The Trump Organization.
Trump International Hotel & Tower, Las Vegas.
Photo courtesy of The Trump Organization.
Sources: Linneman Associates, "The Trump Organization Value-Added Market Study," July, 2007; Christopher Palmeri, "Hike Your Odds on a Vegas Condo,"Business Week (February 14, 2005), p. 94.
If you add up all the sales objectives for a specific product or service for all an organization 's sales representatives, then you should obtain the overall sales objective for that product or service.
One exception is that, in some organizations, sales objectives for particular products or services may be set high to motivate salespeople.
You may set sales objectives in terms of both profits and sales. However, in some organizations, sales managers prefer not to provide their salespeople with information as to the profitability of their various products and services because they do not want to encourage salespeople to give discounts. However, if salespeople do not know which products or services are the most profitable, then it is especially important for you to sort out sales objectives by product and by market, as discussed in the next section.
Continue reading here: Sales Objectives by Product and Market
Was this article helpful?
