ITEE ITEE-1 | Page 77

2 Sales/product/purchase planning In “sales/product/purchase planning,” strategic activities are implemented based on the results of market research analysis and predictions for supply and demand. ●Sales Planning “Sales planning” is planning how to sell what kind of product or service to whom. After a sales plan is determined, subsequent product and purchase plans are formulated. The following “4W2H” are used as a base when creating a sales plan. What Determine specifically the product or service to be sold. How Much Determine the price by assuming the volume of sales. Where Determine which region to target. Whom Envisage what kind of customer the product or service could be sold to. How Determine what kind of sales method to use. Who Determine who will sell the product or service. ●Product Planning “Product planning” is planning a product or service that can secure profit in the market by acquiring a precise understanding of consumer needs. The number and composition of products already circulating on the market and new products are taken into account when determining a product plan. ●Purchase Planning “Purchase planning” is planning what to purchase from where and under what terms in order to achieve the objectives of the sales plan. Purchasing has a large influence on sales, and profit and must be considered carefully to allow normal financing. If inventories are too small, there is a danger of shortages occurring. If inventories are too large, there is a danger of having excess stock. It is imp ortant to plan purchasing so that inventories are rotated as efficiently as possible in order to reduce the capital burden and prevent stock from deteriorating or becoming obsolete. 3 Sales Promotions “Sales promotions” are initiatives that utilize advertisements and campaigns to encourage the eagerness of consumers to buy and the eagerness of vendors to sell products or services. In sales promotions, it is important to tailor initiatives towards individual target groups such as consumers, vendors, staff inside the company (sales department), etc. 71