Market Intelligence

Proper and accurate information is required before you put your sales plan together. Market Intelligence should also be an ongoing process. The information could come from the ‘field’ ie the Sales Team and so a good Sales Manager would put together a system of reporting, so he or she can detect changes in the market. The sales strategy can then be adjusted accordingly.

Environmental factors.

This is anything external to the business and can include corporate changes, such as Head Office directives. Another example of an environment factor could be competitor information. For example, have they produced new a product line? SWOT analysis can be very useful in this exercise. There may be new Legislation coming out which should be taken in account in your sales strategy. Next what about factors in the economy in general? Will there be a squeeze on Capital expenditure this year?

Data/Information sources.

Information should come from your own people in your business, such as other departments, higher management or the salesforce. With experience, a sales person will get a feel for the market, what will sell well and what won’t. This too needs to be taken into account. Information can also come from your customers. What are their challenges or requirements? More in-depth information can be derived from market research studies.

Analysis

The final task in the gathering of information is to analyse the data. The objective to this is to decide on which sub markets and products to target based on their attractiveness, but also to take advantage of opportunities or eliminate threats.
Once you have completed your first Sales Strategy you start prospecting. You will find that ‘out in the field’ your initial basic assumptions will be proved correct or false. Either way, strategy then becomes cyclical and is not something you do just once.

Who Are Your Target Market?

For you to know exactly where to sell, you have to analyse your product first. For you to do that, answer these 10 simple questions:
Who are the direct beneficiaries of the product or service you are selling?
Are there any indirect beneficiaries? If so, who are they?
Who can afford these products? What’s the income bracket of the persons who are willing to buy them?

Would these people prefer to buy them in cash or through other payment methods, like credit card or check? Do they have to sign a loan or an installment plan agreement prior to purchasing?
Where will your market use these products? Will it be at home, in schools or at work?
Who are the people that are most likely to buy? Are they male or female, married or single, young or old?

Is the product a necessity? Alternatively, is it just a luxury?
Is the demand for the product seasonal or is it the same all year round?
Are potential customers already aware of this product, or is it something new and innovative?
Do these people have to gather decision-making data or would they be capable to buy at the spur of the moment?

These 10 straightforward questions would effectively take you right in front of the people where a big chunk of revenues will be coming from. After listing all the definite answers to the questions, you should have a clear idea where your potential markets are. You should then be able to have a good idea as to what method of attack you should use for your every target market.

Segregating Your Market

Still referring to the answers you have for the questions above, you may notice that you have a rather diverse group of buyers. It is possible that your product caters to a big group of people, young and old, male or female. Segregating your market is essential so that you will be able to cater to their individual needs. According to several researches, doing that will take you closer to your prospective buyers and eventually, to sales and profit.
To segregate your market successfully, there are the things that you have to remember:

Determine the distinctive needs of each group of people

Male executives buying your product will have different reasons from single mothers who will be buying it. Although you are selling the same goods to these two sets of people, the presence of their individual needs and benefit remains. This is something that you have to think about as you plan your sales pitch.

Conduct research

You won’t effectively know your target market if you are just guessing what their needs and wants might be. You have to know for sure and should not settle for the if’s, but’s and maybe’s. Send out a survey. Consult with the experts. Read about these people and be properly informed. Know how your competitors do it. Alternatively, if your budget allows it, hire a company to do all of these for you. Then test your market. Assure yourself that you are following the right strategy.

Speak your market’s language

You have to speak the particular group’s language. If you intend to sell to teenagers, you have to talk like one of them and not like strict parents asking them to do this and do that. Speak as if you are a teenager yourself. Know what their heart’s desires are, and give those to them exactly. You should talk like a member of their group, and not an outsider wanting to be a part of it. Your target market will most likely detect a hoax when they smell one. The effects of that are rather unappealing.