Occupational Standard: Marketing and Sales Management Level III

Unit Title Analyze and Achieve Sales Targets

Unit Code LSA MSM3 09 1221
Unit Descriptor This unit describes the performance outcomes, skills and knowledge
required to set, analyse and achieve companies sales targets to guide
performance and monitor the progress of sales against business
standards and objectives.

Elements Performance Criteria

1. Analyse sales 1.1 Team sales targets are confirmed according to business policy and
targets. procedures.
1.2 Personal sales targets are analysed against agreed parameters.
1.3 Progress is regularly monitored towards sales targets.
1.4 Performance of different customers and areas is analysed to
determine common factors supporting or deterring sales.
2. Determine factors 2.1 Factors affecting sales performance are evaluated against the
affecting agreed sales targets.
attainment of sales 2.2 Factors are anticipated and addressed likely to impinge upon
targets. attainment of sales targets.
2.3 Amended or new sales targets are approved according to business
policy and procedures.
3. Attain sales 3.1 Actions are initiated to address customers with under-performing
targets. sales, and report progress to senior management in line with
standard organisational policies and procedures.
3.2 Customers are identified with strong sales performance and actions
are initiated to extend sales opportunities and sustain customer
loyalty.
3.3 Changing business circumstances that may influence capacity are
identified to meet or exceed sales targets and determine a course of
action to address the challenge.
3.4 Sales progress is reported to senior management using standard
organisational policies and procedures.

Variable Range
Team May include but not limited to:
 business team
 full-time, part-time, casual or contract staff
 people from a range of cultural, social and ethnic backgrounds
 people with a range of responsibilities and job descriptions
 people with varying degrees of language and literacy
 small work teams
Business policy and May include but not limited to:
procedures  approval processes
  interaction with colleagues
 interaction with customers
 sale of products and services
 sales planning and evaluation
Agreed parameters May include but not limited to:
 customer accounts
 customer satisfaction
 market share
 price
 regional area
 trading terms
 volume
Factors affecting sales May include but not limited to:
performance  associated promotions
 associated sales
 competitor activities
 customer requirements
 logistics
 market share
 merchandise availability
 presentation or merchandising of the product
 promotional tie-ins or co-location
 quality of products or services
Sales targets May include but not limited to:
 merchandising and sales strategy
 product or service
 promotional strategies and their duration, cycle, area coverage and
product or service focus
 sales strategy
Initiating actions to May include but not limited to:
address customers  assessing the impact of competitors products and ability to offer
with under-performing better solution
sales  exiting unviable relationship with customer
 identifying reasons that may limit sales, including:
 product suitability
 quality of customer service
 viability of the product line to the customers’ business
 offering alternative products

Lol 2 Analyse sales targets.

 Team sales targets are confirmed according to business policy and procedures.
 Personal sales targets are analysed against agreed parameters.
  Progress is regularly monitored towards sales targets.
 Performance of different customers and areas is analysed to determine common factors
supporting or deterring sales.
 SALES TARGETS TEAM
Analyzing sales targets is an important step in understanding how well your team is performing
and identifying areas for improvement; continuously monitor and analyze your sales targets to
ensure that you're on track and making informed decisions based on the data.
 Gather Sales Data
Start by gathering the relevant sales data for the period you want to analyze. This can include
information such as total revenue, number of units sold, average order value, and customer
acquisition cost. Having accurate and comprehensive data is crucial for meaningful analysis
 Compare Actual vs. Target
Once you have the sales data, compare it to the sales targets that were set for your team. Identify
whether you have achieved, exceeded, or fallen short of the targets. This comparison gives you a
clear picture of how well you're performing against the set goals
 Identify Deviations
Look for any significant deviations between the actual sales performance and the targets. For
example, if you have consistently missed your monthly targets, it could indicate a need to adjust
your strategies or allocate more resources
 Analyze Key Metrics
Dive deeper into the key metrics to gain insights into your team's performance. Calculate metrics
such as conversion rates, average revenue per customer, or customer retention rates. These
metrics can provide valuable information on how effective your sales strategies are and where
improvements can be made
 Segmentation Analysis
Consider conducting a segmentation analysis to understand which products, services, or
customer segments are contributing the most to your sales performance. By identifying
the high-performing areas, you can allocate resources and marketing efforts accordingly.
 Identify Trends and Patterns
Look for any trends or patterns in the sales data. Are there seasonal fluctuations in sales? Are
certain products or services performing better than others? Identifying these trends can help you
make informed decisions and adjust your targets and strategies accordingly
 sales strategy
A sales strategy is a structured plan that outlines the actions, decisions, and goals necessary for a
sales team to position a product or service and acquire new customers. It outlines sales
procedures, activities and product placement to help B2B sales teams achieve sales targets. The
major benefits of implementing a sales strategy are improved team performance, more effective
targeting and a higher ratio of closed-won deals.
Define sales targets
 Simply put, sales target is the milestone to be achieved by the company or the team
or the individual as the case may be. Target is the aim to be achieved and Sales target is the
numbers that are to be achieved in a specified period of time the sales target is decided on the
sales budget which is decided by the company. The Sales Target may be decided by the
management or by individual teams and it is circulated accordingly. It is achieved in order to
generate revenue and increase the sale of the products for the company. Generally, sales target is
a specified amount of sales that a management sets for achieving or exceeding within a specified
timeframe. Sales targets are apportioned among different sales units such as salespersons,
franchisees, distributors, agents, etc.
These targets are usually set based on factors like historical performance, market trends,
and business goals. It's important that your targets are specific, measurable, achievable,
relevant, and time-bound (SMART).

 Team sales targets are confirmed according to business policy and procedures

Business policy and procedures may include:-

May include but not limited to:
 Approval processes
 Interaction with colleagues
 Interaction with customers
 Sale of products and services
 Sales planning and evaluation
IMPORTANCE OF SALES TARGET
Sales targets are essential for providing focus, motivation, accountability, and a basis for
evaluation and improvement. They enable businesses to forecast, plan, allocate resources, align
with objectives, and track progress towards desired outcomes. By setting and effectively
managing sales targets, organizations can drive sales performance, meet customer needs, and
achieve sustainable growth. Here are some key reasons why sales targets are important:

 Focus and Direction

Sales targets provide focus and direction for sales teams. They establish clear goals and
objectives that guide their efforts. Targets help prioritize activities, resources, and strategies
towards achieving specific outcomes. Without clear targets, sales efforts may lack direction and
become scattered, resulting in inefficient use of resources.
 Motivation and Accountability
Sales targets drive motivation and accountability among sales teams. They create a sense of
purpose and urgency, pushing salespeople to strive for success. Targets serve as benchmarks for
evaluating performance, and meeting or exceeding them brings a sense of accomplishment. This
motivation and accountability foster a culture of high performance and drive sales teams to
excel.

 Performance Measurement
 Sales targets serve as a measurable standard against which performance can be evaluated. By
comparing actual sales results against targets, businesses can objectively assess their
performance. This measurement allows management to identify strengths, weaknesses, and areas
for improvement valuable insights into the effectiveness of sales strategies, enabling adjustments
to optimize future performance
 Planning and Resource Allocation
Sales targets guide planning and resource allocation within an organization. They inform
decisions related to budgeting, staffing, and resource allocation. When setting targets, businesses
can assess their capacity, market conditions, and available resources.
 Forecasting and Budgeting
Sales targets play a vital role in forecasting and budgeting processes. They provide the basis for
projecting future sales revenue and estimating financial performance.
 Performance Improvement
By setting challenging but achievable sales targets, businesses create an environment conducive
to continuous improvement. Targets act as milestones that drive sales teams to analyze their
strategies, methodologies, and performance
 Alignment with Business Objectives
Sales targets ensure alignment between the sales function and overall business objectives. They
provide a link between revenue generation and organizational goals such as market share growth,
profitability, customer acquisition, or product penetration.

Effectively analyze and achieve sales targets

 Analyze Past Performance
Review historical sales data to identify trends, patterns, and areas of improvement. This includes
analyzing revenue generated, customer acquisition rates, conversion rates, and sales pipeline data
 Set Realistic Targets
Based on the analysis of past performance, set realistic sales targets that are challenging yet
attainable. Consider factors such as market conditions, industry trends, and competitive
landscape when setting targets
 Break Down Targets
Break down the overall sales target into smaller, manageable goals for individual sales reps or
teams. This provides clarity and focus on specific objectives and helps track progress more
effectively
 Monitor Progress
Continuously monitor sales performance against targets using key performance indicators
(KPIs). Regularly review sales reports and dashboards to track progress, identify any gaps or
areas of concern, and take corrective actions if needed.
 Provide Support and Resources
Ensure that sales teams have the necessary resources, tools, and support to achieve their targets.
This includes providing adequate training, access to marketing materials, sales collateral, and
ongoing coaching and mentoring.
  Adjust Strategies as Needed
If sales performance is not on track to meet targets, analyze the reasons behind the shortfall and
adjust strategies accordingly. This may involve revisiting sales tactics, refining messaging,
targeting different customer segments, or making changes to the sales process
 Celebrate Success
Recognize and celebrate individual and team achievements when sales targets are met or
exceeded. This boosts morale, motivates sales teams, and creates a positive sales culture.
 Continuous Improvement
Regularly evaluate and improve sales strategies and processes based on feedback and market
changes. Encourage an environment of continuous learning and innovation to stay ahead of the
competition.
 Collaboration and Alignment
Foster collaboration and alignment between sales teams and other departments such as
marketing, customer service, and product development. This ensures a coordinated effort
towards achieving sales targets and delivering a seamless customer experience.
 Regular Communication
Maintain open and transparent communication channels with sales teams to keep them informed
about progress, changes, and expectations. Regularly communicate sales targets, provide updates
on performance, and address any concerns or questions

 Types of sales targets

Different companies may employ different targets methods as the need of the industry or the
company. A common trend is to follow Yearly or Annual Sales Target by the majority of the
companies
 Daily Sales Target
The entire target is divided by the number of working days and that will determine the everyday
sales target. Large consumer and departmental stores work on daily targets.
 Weekly Sales Target
The target is divided into a weekly basis to be achieved by the sales team. Transport and Cargo
companies, Courier companies work on Weekly targets. Many pharmaceutical companies also
allocate weekly targets.
 Monthly Sales Target
The yearly target when divided with 12 gives the monthly target. The monthly target is followed
by most of the pharmaceutical companies.
 Quarterly Sales Target
Quarterly targets are more of a functional target than actual. The three consecutive monthly
targets put together to make a quarterly target. Also, this provides an aggregate picture of the
direction of sales for the management to review.
 Annual Sales Target
Based on the past year’s achievement, market growth, industry growth the yearly targets are
allocated. Large equipment companies, heavy goods, and industrial machinery work on Annual
Targets
 SALES TARGETS PARAMETERS
 Analyzing personal sales targets parameters involves evaluating various factors that
contribute to achieving individual sales goals. By analyzing these once personal sales targets
have been set, they should be regularly analyzed against the agreed parameters. This involves
assessing the salesperson's performance and progress towards achieving the target, as well as
evaluating whether the parameters set are still appropriate and realistic.
During this analysis, the salesperson's actual sales numbers or revenue generated are compared to
the target. This helps determine whether they are on track to meet or exceed the target, or if
adjustments need to be made.
Additionally, the agreed parameters, such as the timeframe, accountability measures, rewards,
and incentives, should also be evaluated. This ensures that they are still relevant and effective in
motivating the salesperson and driving performance
Agreed parameters May include but not limited to:
 customer accounts
 customer satisfaction
 market share
 price
 regional area
 trading terms
 volume

FACTORS SUPPORTING SALES

Factors may vary depending on your industry, target market, and specific business needs.
Continuously assess and adapt your sales strategies based on changing market dynamics and
customer demands

 Product/Service Differentiation
Identify what sets your product or service apart from the competition. Determine its unique
features, benefits, and value proposition. Understanding these factors will help you effectively
communicate and showcase the value to potential customers
 Target Market Analysis
Conduct thorough research and analysis of your target market. Understand their needs,
preferences, pain points, and buying behaviors. This knowledge allows you to tailor your sales
approach to effectively address their specific needs and position your product or service as the
ideal solution.
 Effective Marketing and Branding
Strong marketing and branding efforts play a significant role in supporting sales. Develop
compelling marketing campaigns, utilize various channels (online and offline), and create
engaging content. Consistent and targeted messaging helps raise awareness, generate leads, and
build brand loyalty
 Customer Relationship Management (CRM)
Implement a CRM system to manage your customer relationships, sales processes, and customer
data. A CRM system streamlines sales activities fosters better communication and collaboration
among team members, and enables personalized interactions with customers
  Sales Training and Skills Development
Invest in training and developing your sales team's skills. Effective sales techniques, negotiation
skills, objection handling, and product knowledge are crucial for successful sales outcomes.
Regular training programs and coaching can enhance the capabilities of your sales team.
 Strong Sales Team Collaboration
Foster a collaborative environment within your sales team
Encourage knowledge-sharing, open communication, and teamwork. When team members work
together, they can learn from each other's experiences, leverage collective expertise, and support
one another in achieving sales targets.
 Effective Lead Generation
Develop a robust lead generation strategy to ensure a steady flow of qualified prospects. This can
include various tactics such as content marketing, social media engagement, networking, and
lead nurturing campaigns. Consistently generating high-quality leads provides your sales team
with a pool of potential customers to engage with.
 Customer Testimonials and Referrals
Leverage the power of customer testimonials and referrals. Positive reviews and
recommendations from satisfied customers can significantly influence the buying decisions of
prospects. Encourage your happy customers to share their experiences and refer your product or
service to others.
 Continuous Analysis and Improvement
Regularly analyze your sales processes, strategies, and results. Keep track of key metrics,
identify bottlenecks, and make data-driven improvements. Adjust your approach based on
customer feedback, market trends, and performance insights to optimize your sales efforts.
 Excellent Customer Service
Providing exceptional customer service is vital for sales success. Ensure that your customer
service team is trained to handle customer inquiries, issues, and post-sales support effectively