With a sales-oriented pricing strategy, you base the price of our product on a specific sales target or sales goal. Sometimes, it could be about units sold. Therefore, we could declare that we want to sell 10 million units. We believe that setting this price here will help us achieve that. Thats one way to go. A different strategy would be to focus on a specific market share. We can try to achieve that goal by how we set prices.
Generally speaking, when we adopt a pricing strategy that is focused on driving sales, our price is under pressure to decline. In order to avoid not covering our costs, we must be careful not to go too low. However, if we’re serious about boosting sales, that usually means lowering the price a little.
Traits of a sales-oriented company
Market-oriented businesses or organizations that employ an entirely different business strategy tend to share a particular set of characteristics that set them apart from sales-oriented businesses. Commonly, sales-oriented companies exhibit the following traits:
What does it mean for a company to be sales-oriented?
A sales-focused strategy puts the company’s marketing campaigns and sales team ahead of customer needs and market research. Companies that prioritize making sales rely on their sales department to market products and close deals. Utilizing a company’s resources to create product promotions and sales techniques rather than market research to increase sales is the primary characteristic of a sales-oriented business approach.
Goals
Businesses that follow a sales-oriented strategy believe that increasing sales will increase their overall profits, so they focus their time and resources on production and promotion rather than identifying their target market and developing a product or sales experience that meets the needs and preferences of the consumer.
Industries
In certain industries, such as insurance, automotive, and lifestyle brands, or for particular products like fire extinguishers and funerary services that customers may not necessarily seek out Customers are more dependent on a salesperson to lead them through the sales process because they don’t anticipate making these purchases, which leaves them less knowledgeable about the good or service.
Differences between sales-oriented and market-oriented companies
There are several ways that businesses can focus their business strategies. Two of the most common approaches are sales-orientation and market-orientation. Although understanding the market and selling a product are related, these two strategies have significant differences.
Sales-orientation
A sales-oriented business strategy prioritizes growing sales over meeting customer needs at its core. Common characteristics of a sales-oriented business approach include:
Market-orientation
Market-oriented companies typically pinpoint their target market with great specificity and look for opportunities to alter their product or service to better suit the needs of their clientele. Market-oriented companies often demonstrate these traits:
Some businesses combine strategies to develop the ideal marketing plan for their good or service. This is especially true for businesses that offer a variety of goods and services, some of which are in high demand while others are not.
Examples of sales-oriented companies
You can find sales-oriented businesses in a variety of industries. These companies typically offer a good or service that the customer hasn’t given much thought to. To better understand how sales-orientation works, examine these examples of sales-oriented businesses and practices.
Ellies Auto Stop
Ellies Auto Stop is an automotive parts and repair shop. When customers come in for a routine service, the business employs a sales-oriented strategy to boost sales on additional services and automotive supplies.
Example: “I noticed that I needed to replace your air filters while I was changing the oil.” Theyre pretty clogged up. I can deduct $20 from your bill for labor if you replace them today since I already changed the oil. Should I go ahead and replace the air filters?”.
B&Ds Lifestyle Oasis
B&Ds Lifestyle Oasis sells designer women’s clothing, furniture, and other accessories for the home and lifestyle. They use branding and promotions to increase sales.
“I see you’ve chosen one of our signature blouses,” for instance. We have a promotion running on those until the end of the day: buy two and get the third one free. We don’t often get promotions like this, so I would definitely take advantage of the chance!
Sams In-and-Out
Sams In-and-Out is a convenience store that offers common automotive supplies, food snacks, and other knickknacks. To persuade customers to buy more products, they employ promotions and product placement.
Example: “This week, sodas are buy one, get one free. Are you sure you only want one?” Additionally, our offers for sunscreen and bug spray are buy one, get one free. If you were going outside today, I would use that to my advantage. “.
Sales Oriented Pricing Strategy
FAQ
What is a sales-oriented objective?
Sales-related Goals Pricing goals that are focused on increasing sales or market share. When comparing a volume increase to a company’s own sales over a certain time period, Market share compares a company’s sales to those of rival businesses in the same sector.
What are sales-oriented companies?
Companies that prioritize making sales rely on their sales department to market products and close deals. Utilizing a company’s resources to create product promotions and sales techniques rather than market research to increase sales is the primary characteristic of a sales-oriented business approach.
How do you show you are sales-oriented?
Key Takeaways. Sell yourself to the interviewer by “hard-selling” your experience and abilities. Use the same body language and techniques that you would if you were trying to sell the interviewer a product or service. Concentrate on the qualifications that were listed in the job posting as “preferred” or “desirable.”
