5 Main Types of Sales Strategy
Posted: Mon Jan 27, 2025 10:39 am
In practice, development plans vary greatly. Below are some of the main, most popular options.
Open market capture
A strategy for large companies. It consists of pushing a significant portion of competitors out of the market by lowering prices (and thus reducing profits).
How did large retailers enter the austria email list market under this strategy? They claimed to have the lowest prices, and they really did sell at the lowest possible price. Even suppliers were panicking, because sales prices were lower than purchase prices. But large sellers make up for lost time through three sources of income:
Front margin, that is, a direct markup on the purchase price.
Back margin. This is the interest received under the terms of the contract.
Short-term deposits (very expensive), which are placed by the own financial structures of large companies (and they are always there), using daily cash flow (and it turns out to be quite large).
Strategic sales planning can also be presented as a sequential market takeover, when a company, displacing competitors, gradually strengthens itself in one niche, then in another, etc. This approach is relevant for self-confident, competent market players who know their competitive advantages and understand the needs of buyers.
Another way to capture the market is guerrilla attacks. Here, the company's focus is on niches that are poorly developed or uninteresting to market leaders, where it can launch active operations.
Development of new activities and markets
This approach works great, and there are many examples of this. You can expand the geography of sales by developing new regions and even foreign markets. Here is an example: one company engaged in meat processing implemented CRM, automated business processes, and thanks to this received excellent expertise, acquired competence. This allowed them to launch a related direction for selling IT products for their own industry.
Another example of successful implementation of such a sales planning strategy is the activity of Natura Siberica, which placed cosmetics production in Russia, but mainly from imported ingredients. The 2014 crisis brought about an increase in exchange rates, the cost price turned out to be expensive, and given the large sales volumes, the activity became unprofitable. Then Natura Siberica opened its first foreign production (in Estonia) and from there began to supply Europe, then America, other countries, which brought in foreign currency income and saved the situation.
Objectives of Strategic Sales Planning
You can successfully implement partnership cooperation, within the framework of which you can launch joint cashback programs, organize partner clubs and actively exchange buyer audiences. Who, for example, might be of interest as a partner for a seller of floor coverings? Developers, sellers of doors, wallpaper, furniture items.
Another option is to develop in related niches and obtain additional buyer audiences in them, and therefore profits.
Open market capture
A strategy for large companies. It consists of pushing a significant portion of competitors out of the market by lowering prices (and thus reducing profits).
How did large retailers enter the austria email list market under this strategy? They claimed to have the lowest prices, and they really did sell at the lowest possible price. Even suppliers were panicking, because sales prices were lower than purchase prices. But large sellers make up for lost time through three sources of income:
Front margin, that is, a direct markup on the purchase price.
Back margin. This is the interest received under the terms of the contract.
Short-term deposits (very expensive), which are placed by the own financial structures of large companies (and they are always there), using daily cash flow (and it turns out to be quite large).
Strategic sales planning can also be presented as a sequential market takeover, when a company, displacing competitors, gradually strengthens itself in one niche, then in another, etc. This approach is relevant for self-confident, competent market players who know their competitive advantages and understand the needs of buyers.
Another way to capture the market is guerrilla attacks. Here, the company's focus is on niches that are poorly developed or uninteresting to market leaders, where it can launch active operations.
Development of new activities and markets
This approach works great, and there are many examples of this. You can expand the geography of sales by developing new regions and even foreign markets. Here is an example: one company engaged in meat processing implemented CRM, automated business processes, and thanks to this received excellent expertise, acquired competence. This allowed them to launch a related direction for selling IT products for their own industry.
Another example of successful implementation of such a sales planning strategy is the activity of Natura Siberica, which placed cosmetics production in Russia, but mainly from imported ingredients. The 2014 crisis brought about an increase in exchange rates, the cost price turned out to be expensive, and given the large sales volumes, the activity became unprofitable. Then Natura Siberica opened its first foreign production (in Estonia) and from there began to supply Europe, then America, other countries, which brought in foreign currency income and saved the situation.
Objectives of Strategic Sales Planning
You can successfully implement partnership cooperation, within the framework of which you can launch joint cashback programs, organize partner clubs and actively exchange buyer audiences. Who, for example, might be of interest as a partner for a seller of floor coverings? Developers, sellers of doors, wallpaper, furniture items.
Another option is to develop in related niches and obtain additional buyer audiences in them, and therefore profits.