3rd Bac - Sales Trend

Sales Trend

Sales trend is a methodology to understand sales results which helps in understanding the trends of the market over a specific period of time. Sales results are an indicative of the sales patterns followed by the customer over a time period. The time period can be short, average or long. Sales trend can be analyzed by compiling the sales and employment over the time period against the financial reports.

Purpose of understanding sales trend:

• It compares the company against its peers and therefore analyses the relative position of the company in the industry

• The company can do better business by following the trend.

• Better understanding of the business facilitates the company to plan its short- and long-term marketing strategies.

• Customer retention (to keep having them as customers)

Sales trend is usually done by the process of customer segmentation. Customer segmentation is done on the basis of products, sales channels, geographic regions etc. Customer segmentation is done such that the customers in a particular segment have similar attributes. Usually customers with similar attributes have the same purchasing behavior.

A typical sales trend includes the following:

• Sales change from the last time period

• Customer segments with the highest growth rate

• Customer segments with the highest revenue

• Customer segments with exponential growth rate

• Sales forecast and so on

Classwork: Scan and send me the class copied to your notebook in a PDF file to my email: engteachermiken@gmail.com by the end of the class.