Any business, whether small or large, should put maximum efforts in expanding sales volume because continuous growth in sales is the only way to survive in the market. To achieve this, a company may introduce new products, promote them through enticing marketing campaigns, offer discounts, and make payment options easier.
Any business that continuously misses its sales goals may be forced to cut off some operations or shut down completely. That's why it is very important for any business that struggles with sales to quickly determine factors that may be affecting sales and correct them.
In this article, we will cover some factors that may affect sales performance, whether they are internal or external. Let's take a look at them now.
Internal factors
The internal factors originate within the company, and it's the company that has control over them. These factors include:
1. The product
One of the top factors that can determine the business' sales growth is the capital itself. If the product is satisfying customers' needs at reasonable prices, it will sell. The business should ensure that they maintain the quality of the product and add or modify the functions according to the ever-changing technology and the varying tastes and preferences of the customers.
2. Marketing
A company's marketing strategy plays a significant role in sales. It needs to focus on determining the correct target audience and positioning the brand. When you do this correctly, you'll see an increase in sales.
The qualifications and experience of an organization's marketing team are crucial for determining strategies that will attract more consumers. Creating well-defined marketing strategies using the right sales enablement platforms and staying on top of current marketing trends can help your company achieve more sales. If you want to increase conversions and revenue, you can incorporate bulk SMS texting into your marketing campaign. SMS is a wonderful channel for promoting your brand, product or service. You can use bulk texts to notify your clients of any important updates, send promotional campaigns, and even ask for feedback on products or services.
3. Availability of finance
Availability of adequate capital at critical moments, like when introducing new products, during an expensive campaign, or when switching your manufacturing technology to a more sophisticated one, require a significant amount of money. If the business has the money at its disposal, it can be easy to introduce newer business methods that can positively affect sales.
4. Technology and automation
Any business that wants to achieve higher sales growth must upgrade their technology. Investing in newer, smarter technology and automating their business processes like electronic payment services, automated order booking, or electronically addressing the customers' grievances can generate an excellent market base and increase sales. Store owners should consider implementing an inventory management software to manage their stock and in the right way.
5. Availability of suppliers
It's crucial to build and maintain a good network of suppliers. The availability of raw materials, consumables, and components can affect the sale of a finished product. Getting raw materials at the right time ease the manufacturing process and the delivery of the right quality product in the market.
External factors
The external factors are competition, political, economic, and technological forces that affect sales. The company has no control over them, but they can develop some strategies to respond to them. The external factors include:
1. Economic cycle
The economy of any country goes through various cycles like growth, expansion, and recession. The demand for a product depends on the economic cycle that the country is currently experiencing. In the growth phase, the demand is high and customers have more disposable income, while in a recession phase, money is reduced as well as the demand and supply of a product. Therefore, the economic cycle has an impact on sales.
2. Consumers' expectations
Consumers' tastes, preferences and expectations with regards to prices, new features, packaging, and delivery keep on changing, making a significant impact on demand for a product. The company has no control over these expectations; it can only change its production and marketing methods to meet its consumers' needs.
3. Laws and regulations
Any business has to comply with the demands of laws and regulations of that particular country where it operates. Pronouncements of laws by the government regarding the legality of the product, its minimum pricing requirements, and taxes can affect sales of that particular product. Moreover, advertising restrictions can also affect sales.
4. Competition
The market position of the competitors' products plays an important role in determining the sales of a particular business' product. If the competitor has a reputable brand controlling a significant market share, its presence may negatively affect the sales of the rival's products.
So, these are some of the factors that could have an impact on your sales. If you take care of them, your business will be on the right track for success.
* This is a contributed article and this content does not necessarily represent the views of sciencetimes.com
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