Video 3 - Sales planning in alignment to corporate strategy

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From the course by Fundação Instituto de Administração

Effective Sales – An Overview

67 ratings

Fundação Instituto de Administração

Effective Sales – An Overview

67 ratings

Course 1 of 5 in the Specialization Strategic Sales Management

Welcome to Strategic Sales Management specialization. This specialization course focus on providing conceptual and practical guidance on sales planning and management. The development of the specialization goes through the different phases of the sales planning process, keeping attention on the connection to the strategy of the company. Concepts discussed in this specialization aim to support the analyses on how to plan sales in alignment with the strategic guidelines of the company. The sales functions are discussed with models and frameworks that support the planning process, which includes assumptions regarding the strategic guidelines, such as aggregate revenue targets, company’s earnings, and expected cash flow from the company’s operations. These variables are all related to the strategy of the company. The target audience of this specialization include professionals with some experience in sales, they might have been promoted to a managing position recently, or they have plans to improve their expertise in the sales area to apply to more challenging positions in the future. Prerequisite for this specialization is general knowledge of business concepts, models, and tools. Professionals who have concluded undergraduate courses of business administration, and also of different areas of knowledge, such as engineering, economics, accounting, and social sciences. It’s also important to emphasize that sales involve a broad range of areas, there are products and services related to agriculture, petrochemical, automobile, aeronautics, chemical, pharmaceutical, medical, insurance, education, retail, and consulting industries, just to mention some examples. That means sales professionals are from all sectors. Therefore, learners of different academic backgrounds may benefit from doing this specialization, which is structured to support sales planning and management from a methodological standpoint. And this approach applies to a diverse range of sectors. The primary learning outcome of this specialization is the improvement of the sales planning and management competencies and skills, by providing a set of concepts, models, tools, and techniques to support the development of the sales plan structure, which will support the sale plan development.

From the lesson

Module 2 - Strategic Sales Planning

Welcome to Strategic Sales Management specialization. This specialization course focus on providing conceptual and practical guidance on sales planning and management. The development of the specialization goes through the different phases of the sales planning process, keeping attention on the connection to the strategy of the company. Concepts discussed in this specialization aim to support the analyses on how to plan sales in alignment to the strategic guidelines of the company. The sales functions are discussed with models and frameworks that support the planning process, which includes assumptions regarding the strategic guidelines, such as aggregate revenue targets, company’s earnings, and expected cash flow from the company’s operations. These variables are all related to the strategy of the company. The target audience of this specialization include professionals with some experience in sales, they might have been promoted to a managing position recently, or they have plans to improve their expertise in the sales area to apply to more challenging positions in the future. Prerequisite for this specialization is general knowledge of business concepts, models, and tools. Professionals who have concluded undergraduate courses of business administration, and also of different areas of knowledge, such as engineering, economics, accounting, and social sciences. It’s also important to emphasize that sales involve a broad range of areas, there are products and services related to agriculture, petrochemical, automobile, aeronautics, chemical, pharmaceutical, medical, insurance, education, retail, and consulting industries, just to mention some examples. That means sales professionals are from all sectors. Therefore, learners of different academic backgrounds may benefit from doing this specialization, which is structured to support sales planning and management from a methodological standpoint. And this approach applies to a diverse range of sectors. The primary learning outcome of this specialization is the improvement of the sales planning and management competencies and skills, by providing a set of concepts, models, tools, and techniques to support the development of the sales plan, and then the plan implementation and control.

Video 1 - Welcome to sales planning and corporate strategy alignment1:35

Video 2 - Xavier and Logan in: Developing the sales plan in alignment to corporate strategy1:12

Video 3 - Sales planning in alignment to corporate strategy6:51

Video 4 - The Strategizer: our hub for sales strategy - Episode 313:02

Meet the Instructors

Nelson Yoshida
Ph.D., MBA, B.Eng.
FIA Profuturo – Futures Studies Program
Samantha Mazzero
MSc, MBA, BS Math
FIA Profuturo – Futures Studies Program
Cesar Rodrigues
Specialist Professor
Edson Ito
Specialist Professor

[MUSIC].

Hello there, nice to see you again.

Thank you very much for coming back.

Let's go for the subject of integrating sales planning to corporate strategy.

It's been discussed before that important subject

of integrating strategy involve the company marketing and sales function.

Some of the topics discussed previously

are related to the corporate goals of the company.

And these goals look at the medium to long-term origin.

Ideally, the goal should be aligned with the strategic guidelines.

Corporate manager base on strategic guidelines to define the corporate

strategy.

Long-term programs give the direction of the company changes necessary to improve

profits, the pipeline of new products, and other strategic

issues that company managers should address for next years to come.

So one of the consequence of the corporate strategy is that they

seek often improving profits and cash generation potential.

Therefore, at the corporate level strategy,

some of the objective related to the cash flow and earnings,

which leads to corporate executives to establish goals such as beat the margin,

expected cash flow, or earnings per share.

These goal are broad financial indicators that can be

achieved by a series of programs, projects, and actions,

we think the business level, which means that business unit's level.

This programs and projects lead executives to establish primary revenue goals.

And at the business level, revenue come from product and service sales.

And here is the link between corporate strategy and sales.

So the subject under analysis is the transition

from corporate strategy to sales planning.

In other words, it's the discussion about how it should operationalize

the alignment of sales planning to the corporate strategy.

Again, it's important to remember that the link between a strategy and

sales function is supported by the marketing function.

How is it done?

By integrating strategic market and sales to generate a like strategy to sales plan.

And one important step of this integration is the sales planning process.

When asking about how to integrate the sales to strategy,

most people would say that it's basically through the sales revenue.

That means manager would plan the expected revenue

accordingly to the corporate strategy guidelines.

And then the sales planning should include all discussions about program,

and project that could support achievement, the expected revenue level.

So to operationalize a sales planning integrate to corporate strategy,

manager should estimate the revenue level that aligns with the corporate strategy.

For example, the strategic guideline could set a goal for Ebitda margin at stock.

As it's a margin indicator manager or design transitioned from the corporate

level strategy to the business level by looking at the revenue and the cost.

Sales planning process would focus on the relationship between revenues and

costs to serve, for example, by defining the sales incentives programs.

Of course, there are other factors to analyze, such as the cost of goods sold,

the administrative expense, capital expenditures, working capital needs,

and financial expense.

This topic would be managed by the different areas of the company like

production, operations, finance, engineering, and marketing.

Specifically for sales area, the items to be addressed are the incentives

program, pricing, discount policy, travelling costs.

And also the addition of attributes that would or

would not make part of the solution offered to the customers.

A similar rationale would apply in the case of

expected cash flow at the corporate level.

In this case, manager would be analyzing the potential of the revenue generation.

And since the revenue is the consequence of products and

services sold to the customer, the transition between corporate strategy and

sales planning is very straightforward, in this case.

In the sales planning process, manager would be estimating the volumes or

amounts of product and services necessary to achieve the revenue goals.

Estimation of revenue is a typical process of the sales and

marketing planning process.

That's why it's recommended to keep a close connection

with the corporate planning process.

And this process includes the transition from corporate strategy to

business unit strategy.

Analysis and formulation which eventually will go through the sales and

budgeting planning.

That's how corporate strategy shapes the sales planning process.

Please follow the steps of the course and read all materials provided.

We also invite you to come to the next session of Stratigizer,

with a great interview with a special guest.

Don't miss it, stay tuned and I see you very, very soon.

[MUSIC]

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