What External Factors May Cause a Sales Plan to Change?
Sales plan development encompasses pricing, the types of channel delivery for your product and specific sales goals. Regardless whether you are a small business owner or the sales manager for a large corporation, you need to adjust your sales plan throughout the year. Internal factors such as employee turnover lead to redistribution of work among existing sales employees. Implementation of lower pricing internally leads to positive adjustments to sales plans. In addition to internal factors, managers face sales plan adjustments in response to external factors.
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Competitive Struggles or Innovations
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As competitors implement strategies, such as product innovation or a sales force increase, other companies change their sales plans in response. If you anticipate a competitor's change will diminish your sales growth, you need to adjust your plan quickly. Decide how you will compete against a competitor's innovation, for example. Educate sales people on techniques to position your company's strengths against the competitor's new advantage. When a competitor struggles, for example during a time of negative publicity, direct the sales team to spend more time calling on the competitor's customers.
Environmental Factors
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Environmental factors, such as technology, impact sales plans. For example, as more television viewers watch shows online, media companies like Fox Broadcasting plan to increase the sale of online ads. Technological changes, such as delivery of services through mobile devices or faster online channels, force companies to look at their own delivery methods. When companies switch to a new delivery method, pricing, sales training and other sales plan components are adjusted. Another environmental factor is supplier considerations. When a company's supplier raises its price, the organization may need to research other suppliers or raise its product price.
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Local Issues
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Local issues result in changes to a small business' sales plans. For example, if a hurricane creates impassable roads near downtown, a downtown restaurant considers delivery of meals to compensate for fewer diners. Local factors such as a competitor's heavy community involvement also may cause companies to realign sales plans. If companies believe the competition is winning more business through its community presence, they may direct their own sales executives to increase community involvement.
Economic Conditions
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Economic downturns affect even the soundest sales plans. On the other hand, an economic upturn causes sales plans to change positively. Successful firms stay abreast of economic conditions and predict the impact. They make changes to sales plans as a result of economic factors. For example, in a recession, when companies are more reluctant to spend, service companies may offer shorter commitments to their clients. They offer sales terms of six months, whereas in better times, they require a one-year commitment.
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References
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