Government regulations - Sales Management

Government involvement in trade can cover a number of situations:

  • control of sales through authorized trade channels (where the government wants to collect taxes or limit persons permitted to purchase products)
  • advertising and promotion of products
  • control of imports though an import licensing or quota system
  • labeling regulations
  • specifications and quality standards.

The plan should normally summarize regulations applying to trade in a market and must then make assumptions as to whether these will remain consistent or change during the period of the plan.

Competitor activity

Markets are dynamic not static, and it is dangerous to plan without taking account of competitors’ achievements and activity, and their responses to your plan. Continuous monitoring of competitors’ marketing programmers,their product ranges (particularly noting innovations and changes), and their product pricing and target market positioning all add to the base of knowledge that helps the marketer make a better plan. With this knowledge the marketer must then make assumptions about what the competitor swill do in the future, during the planning period and in response to his or her market activities.

Socioeconomic factors

The stability of the political environment,levels of income and employment,and consumer/user attitudes may impact on sales of many products, but winsome markets the degree of industrialization may also have an impact on sales volumes or the product mix suited to local needs. The market plan should consider antisocial factors that will affect the implementation of the plan and present the assumptions on which the plan is developed.

Demographic factors

The marketer needs to identify what demographic factors affect his or her planning process, and factor in assumptions on development sand their likely impact on sales potential. Planning assumptions for many products need to consider market demographics.

Consumer products can be influenced by population age, the sexual balance,size of average family unit, birth rate and other factors affecting population growth,trends in population location, and education of the population and resultant increase in incomes and lifestyle sophistication can all impact on sales potential for many products. With the wealth of market knowledge the marketer acquires over time, the planning process should become more sophisticated and accurate in its predictions about trend sand sales volumes.

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