When you descend into the business world, including online store business, your activities are not far removed from marketing activities. This activity is certainly not far removed from the word “sales”. You know, when you sell a product, there’s a strategy, you know!
To maximize the process of running a business, you must have a business strategy that is right on target. This means that what your company sells must match what the market needs. To be clear, let’s find out what a sales strategy is in the following article!
What is a sales strategy?
Simply put, a distribution strategy can be interpreted as a strategy undertaken by business people to spread or distribute the products or services they have. Implementing the right sales strategy is often seen as one of the keys to a company’s success in generating profits and maintaining customer loyalty.
Many companies pursue a consumer-oriented sales strategy. That is, the business strategy employed must be based on the company’s ideal consumers. This can be done by answering several consumer-related questions, e.g. B. how consumers can buy the products or order the services offered, how we can simplify the buying process, whether consumers can get products faster when buying them from retailers, etc.
Why is sales strategy important?
Reaching more consumers requires the right sales strategy. Since activities now incur costs, sales strategies must be effective and efficient. Without an effective and efficient distribution strategy, you cannot sell the product to the end user with the expected profit. To avoid losses, as a business owner, you need to ensure that the products or services you offer can reach the maximum number of consumers with minimal distribution costs.
In short, if the sales strategy you use is right, the maximum profit can be made. If, on the other hand, the sales strategy is not planned and does not correspond to the goal, your company will not only suffer losses but will even bring advantages for the competitors through the market opportunities you have created.
Types of Sales Strategies
Now that you understand the importance of sales strategy and how to use it in business or corporate development, you also need to understand what types of sales strategies exist. Broadly speaking, there are 3 types of distribution that you need to be aware of. Here are the details:
Type with intensive distribution
If you’ve been in the business and marketing world for a long time, you might be familiar with the term intensive sales. Generally, this type of distribution occurs when a company or business begins to ignore market segmentation and focus on providing products to easily accessible markets. For example, soda drinks with specific brands where consumers can find them in different places like gas stations, drugstores, supermarkets, etc.
Usually, the company pursues an intensive sales strategy to increase brand awareness of the product in question. To achieve maximum results, companies usually focus on considering several key factors before finally deciding on this sales strategy. Some of these factors like price, target market, product size, advertising policies, and other detailed information are needed.
There are several strengths of an intensive sales strategy, one of which is increasing sales. As explained earlier, intensive sales can increase the visibility of the product you are marketing. The higher the visibility of the product, the higher the sales.
In addition, an intensive sales strategy also makes a lot of sense if you want to launch a product. By displaying the number of products or advertising for the product in question in specific places, consumers can more easily remember the product.
However, if you want to bring these products to market, the costs involved are often high. Especially if you want the product to be present in every store in a certain area, for example.
Selective distribution type
The second type of sales strategy, also used by many companies, is the selective sales strategy. Usually, this distribution strategy is used by high-end brands that aim to establish outlets in specific locations. Typically, this strategy targets shoppers, meaning consumers who have certain brand preferences when they want to buy a product.
In general, this type of selective distribution is often used by manufacturing companies that prefer to focus on a few outlets rather than wasting energy and resources on marginal outlets that are everywhere. Speaking of effectiveness, the selective distribution strategy is best suited for companies that want to maintain the quality of their products or services according to the needs of consumers in specific areas, most of which are companies that produce high-quality accessories and clothing.
One of the advantages of selective distribution is optimal market coverage. This is driven by customer satisfaction in certain geographic areas as the company chooses to focus on the quality of outlets in that area.
Unfortunately, since this store or company is concentrated in a few outlets, its products cannot be found in many places.
Exclusive sales type
The final distribution strategy discussed in this article is exclusive distribution. This type of distribution is often referred to as monopoly distribution, where a company tries to create an exclusive atmosphere to give its products a higher profile and differentiate them from the competition’s products. Typically, companies implementing this distribution strategy have their exclusive distributor with a limited number.
In short, this type of exclusive distribution is very popular with companies that want to build a prestigious brand image, such as B. Companies that produce clothes by famous designers, luxury car manufacturers, manufacturers of expensive electronics, and so on. An example of the brand is the Rolex watch.
With mono-branding activities, sales will increase dramatically while marketing costs remain under control. The increase in sales is usually driven because consumers are interested and believe that the products offered by the company cannot be found in many places but only certain people can get them.
But unfortunately, companies that implement this sales strategy typically struggle to get their business to market. That’s because the company relies too much on exclusive distributors.
Well, that’s some information about sales strategies you need to know, from understanding to benefits to types. If your business is to run smoothly, the sales strategy used must also be right.
In addition, the customer service you apply must be of high quality. One way to improve customer service is to improve inventory management.