Attached.

Running head: Sales and Purchase Management

SALES AND PURCHASE MANAGEMENT
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Sales and Purchase Management

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Question One
A sales strategy can be defined as an approach which is used and allows the sales force of
an organization to put the company and the products in a good position that will be able to reach
clients in a meaningful and well differentiated way. Sales analysis determines about sales of
products, their reason for its decline, what type of goods is sold and what is not sold. By these
kind of information and knowledge the decisions maybe on sales strategies can be very informed
and effective. In all organizations the sales department performs an important role in business
progress. It bridge the gap between the needs of prospective customers and the goods and
services that are offered by the company in a way that fulfills the needs of those customers.
Over a period of time, the company requires to analyze the sales that has been made and
this can be made weekly, monthly or even quarterly depending on company policies. For every
business and company there must be a sales target and depending on the time set for the target to
be achieved, the sales man need to know the progress midway that specific period. This is the
time that sales analysis is used. It help the company know where it stand in sales for it to check
on the strategies it is using whether they are working or need improvement.
This evaluation and analysis in all levels from lowest to highest level of a company so
that the decision makers are able to understand segments where the company is making more
sales and gaining more and the segments that are doing poorly. For example in Coca-Cola, the
company segment is on basis of factors such as age, family income and family size and this
perfect segmentation contributed to the big success in the company.
Analyzing of the available sales data of a company shows the company in case there is a
place it missed an opportunity and whether it can be reclaimed. Conducting a market research
will pay an important role in this presenting data to compare with that of field force and this

Sales and Purchase Management

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proves of valuable assistance in informing the practicalities of the situation. In this case this can
inform various decisions and strategies that can be developed to make sure that in future sales,
all opportunities are used and exhausted as much as possible. Coca-Cola Company for example,
after conducting market research on the sales of the products, realized that the most missed
opportunity was among the youth segment. It resulted to developing a strategy that targeted
population of between 10 and 35 years. This is the reason the company uses pop stars to promote
their products as this will attract more youths and young people. The company also targets
institutions such as universities, colleges and schools in acquiring of contracts.
Analysis of sales data enables companies to make future decisions and develop strategies
that will address future problems. By looking at the sales data, major decisions are made on
whether to continue or discontinue a product are made. In this case if a product has not been
accepted in the market, the sales strategy can be adjusted to focus more on the acceptable
products while discontinuing the one which is not being bought. Strategies can also be developed
to give the product as promotional offer on purchase of other products from the company and
this will boost sales. (Hitesh Bhasin, 2018).
Sales analysis also is important because it helps in understanding the current as well as
the future trends in the market. While the company ...