Michael Richter
International marketing and sales consultant
Hauptstrasse 27
DE-88422 Seekirch
Tel: +49(0)7582-933371
E-Mail: michael.richter@marketing-und-vertrieb-international.de
Strategic marketing and salesControl loop - step 3.: Definition of targets
© Michael Richter
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Now it is time to calculate:
At the beginning basing on empirical values of sales to such clients/target groups we now have to calculate which average sales can possibly be reached during ‘X’-years (normally within 3 – 5 years !) to the companies found.
Therefrom again we can calculate which net income could be the result.
‘Every client has to be bought!’, whether through advertisements, phone calls, INTERNET-actions, presentations, representative visits or else – i. e. at this time it can be decided which portion of the expectable net income the entrepreneur will risk (‘normal business risk’) in order to really reach these clients, reach a certain market share in ‘X’-period and what he intends to do for this target.
This calculation is furthermore important for budgeting.
An example calculation:
If within 3 – 5 years 10 % of the medium sized companies and 5 % of the larger companies (each as per step 2., Bavaria and Baden-Württemberg) can be converted into our clients and if we sell each 10 products to them, then this will be – in case the net income per product would be € 200 per product – 487 (340 + 147) x 10 x 200 = € 974.000 !!
There should be enough means available then to undertake quite some steps to reach them.
Further steps >>
