Sales Planning

Sales Planning, Definition, Explanation, Example

Sales Planning Definition

Sales planning is one of the marketing planning processes. In doing so, forecasts are made regarding market demand in order to be able to offer products in an appropriate quantity on the market. This is to ensure the profitability of a product.

Sales planning is an important part of the marketing planning process . The volume of sales as well as the related sales are determined, which must be achieved in the medium to long-term. Important quantities in this process are the number, value and type of products as well as location and period for a particular sales volume. The sales planning can be determined separately for specific markets, customer groups of the company within certain planning periods. As a result of the sales planning, a sales plan is defined, which in turn is part of the higher-level marketing plan. The sales plan is used for coordination and thus also for the purpose of reaching the target values ​​defined in the planning. 

Relevance of Sales Planning

Sales planning is intended to provide information on the future demand for goods to be produced. It thus forms the basis for a demand-oriented and economic production which covers the available and / or available capacities. Sales planning is also intended to provide a very accurate impression of how the product will develop in the future in terms of sales volumes. It is only when the sales planning is up, that the company can continue with further production planning. 

Strategic, Tactical and Operative Sales Planning

Sales planning can be carried out on a strategic (long-term) and operational (short-term) level . At a strategic level, other business units are included in the planning. In this way, it is linked to other planning such as development planning, investment planning, financing planning and personnel planning. In addition, sales planning is part of market entry strategies and overall strategic business planning. Operational sales planning is usually based on the revenue statement, with data on revenue reductions and revenues being the main focus. As an intermediate step, a medium-term (tactical) sales planning can also be carried out, in which the sizes from the strategic planning are further defined and objectives are specified. 

Sales Planning – Summary

Sales planning is an important part of the marketing planning for a product or a product group since the use of resources required for production can be determined on the basis of this. It can be carried out on a strategic, tactical and operational level with the concurrentisation of the reference variables.


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