The document discusses the importance of sales growth for companies, detailing how to calculate the sales growth rate and its significance for operational efficiency, profitability, and attracting investors. It provides a step-by-step guide for sales growth planning, including defining objectives, assessing current situations, and outlining strategies. Additionally, the document highlights five proven strategies for sales growth and concludes by addressing the challenges in forecasting future growth rates.

1. SUBJECT: MARKETING MANAGEMENT
TOPIC: SALES GROWTH
SUBMITTED BY,
SWATHI P
1ST YEAR M.COM
G.F.G.C FOR WOMEN , HOLENARASIPURA.
SUBMITTED TO,
MR. SUNDAR B N
ASST .PROFESSOR AND COURSE COORDINATOR
G.F.G.C FOR WOMEN ,HOLENARASIPURA.
GOVERNMENT FIRST GRADE COLLEGE FOR WOMEN
HOLENARASIPURA

2. SALES GROWTH

3. CONTENTS
INTRODUCTION
IMPORTANCE OF SALES GROWTH CALCULATION
SALES GROWTH RATE CALCULATION
FORMULA
STEPS FOLLOWED IN SALES GROWTH PLANNING
SALES GROWTH CALCULATION EXAMPLES
FIVE PROVEN STRATEGIES FOR SALES GROWTH FROM WORLDS SALES
LEADERS
CONCLUSION

4. INTRODUCTION:
Sales growth rate measures the company's ability to generate
revenue through sales over a fixed period of time.
Sales Growth measures how quickly a company has
been growing its sales. It is measured as the percentage change
in sales over a given time period.

5. IMPORTANCE OF SALES GROWTH
CALCULATION
1.Indicates operational efficiency: Calculating sales growth shows the efficiency
of business operations and indicates whether policies, processes and
manufacturing operations are running smoothly.
2.Shows profitability: Checking sales growth regularly shows profitability, which
forecasts the company's monthly revenue.
3.Identifies areas of improvement: You can learn about areas of improvement
within your sales by calculating sales growth, which allows you to identify
necessary changes to sales strategies.
4.Compares your sales growth to competitors: Comparing your sales growth to
competitors allows you to see which company has a better growth rate.
5.Attracts investors: Typically, investors prefer working with companies with
tremendous sales growth, so a high growth rate can make the company
attractive to investors.

6. SALES GROWTH RATE CALCULATION
Steps to calculate sales growth:
1. Identify the net sales
Before starting your calculations, identify the net sales using the
company's income statements. Identify the net sales from the most recent sale period
and the sales period directly before the most recent one. For example, if a company wants to
measure its sales growth from March to April, it can use the net sales from each month's
income statement.
2. Find the first variable
The first variable of the equation is the value of subtracting the most recent income
statement's net sales from the prior month's net sales. For example, a company's net sales
from its most recent income statement are $1,000 and the net sales from the month prior are
$800. The first variable is:
$1,000 - $800 = $200

7. 3. Divide the first variable by prior net sales, then multiply by 100
To find the second variable, divide the first variable by the prior net sales. For example, if the first
variable is $600 and the prior net sales are $1,000, then you'd perform this calculation:
$600 / $1,000 = 0.6
Once you have your second variable, you can multiply it by 100. For example, if your second variable
is 0.6, then the equation is:
0.6 x 100 = 60%
Formula:

8. SALES GROWTH PLANNING STEPS:
1. Define the objectives.
Clearly outlining your goals and stating your objectives should always be the first step in creating a sales plan or any other business
venture. You should include the expected sales volume and any markets or territories you expect to reach.
2. Assess the current situation.
The next step is to create an honest overview of your business situation in relation to the goal you set in the first step. Review your
strengths and assets. Take a look at your resources and how you can apply them to your goal. This can Include personal relationships
and competitive advantages like new products or services.
3. Determine and outline the sales strategies.
Sales strategies are the actual tactics your team will use to reach customers. They can include marketing channels as well as
procedures for lead generation and client outreach employed by your salespeople.
4. Define roles for the sales team.
Each member of the sales team should be assigned clear roles, whether they vary from person to person or everyone performs the
same functions.Defining the sales direction of the team is crucial, as it shows the focus of the company and helps the team target and
execute sales most effectively.The plan of attack for the sales team should be communicated clearly by leadership, whether it is from
team leaders or the CEO.

9. 5. Inform other departments of sales objectives.
A sales plan shouldn’t just update a company president or C-suite; it should inform the whole organization
of the sales team’s objectives .Clearly outline your plan for the rest of the company to help them
understand the goals and procedures of the sales team. Other departments become more efficient when
interacting with the sales team and clients. This also conveys a certain level of quality and professionalism
to the clients about the company.
6. Provide tools for the sales team.
Provide the tools each member of the sales team needs to achieve the stated goals, such as customer
relationship management (CRM) software. The best CRM software is customizable to meet a company’s
needs, making it much easier for your team to use the software and work efficiently.
7. Detail how the department will track progress.
Offer strategic direction and insight on how progress will be monitored. Having a quarterly review to
assess whether the company is on target is just as important as the plan itself. Markets change, and so
should your sales plan. Keeping it up to date will help you capitalize on the market and achieve your goals.
Tracking progress is made easier by the tools you use to collect data. That data will then have to be
analyzed and presented in a way which all departments can understand and use for future

10. SALES GROWTH EXAMPLE:
If a company generated $100 million in revenue
this year, and $90 million last year, its sales growth
rate would be 10%.It is a positive sales growth rate.

11. EXAMPLE:
Grocery store sales growth example
Members of management at ABC Grocery Store want to calculate their sales growth rate
to understand how they compare to their competition, whose sales growth rate is 15%
monthly. First, they examine their most recent monthly income statement and determine
that their net sales are $20,000. Then, they analyze the income statement from the
month prior and see that the net sales were $15,000. Next, they want to find the first
variable of the sales growth equation. To do this, they subtract their most recent net sales
from the prior month's net sales:
$20,000 - $15,000 = $5,000
To find the second figure of the equation, they divide the first variable by the prior
month's net sales:
Sales growth = $5,000 / $15,000 = 0.33
Next, they multiply 0.33 by 100, making their sales growth rate 33%. They find that their
sales strategies are working properly since their sales growth rate is 18% higher than
their competitors.

12. SALES GROWTH: FIVE PROVEN STRATEGIES
FROM THE WORLD’S SALES LEADERS
1.Finding growth before your competitors do
2.Selling the way customers want
3.Optimizing sales operations and technology
4.Finding sales leaders who continually challenge the status
quo and thoughtfully manage performance
5.Leading sales growth to make change happen

13. Conclusion
When valuing a growth company, we confront many of the issues we faced with
young idea companies, albeit on a lesser scale. Data on past operations provides a
short, volatile, and not particularly useful basis for forecasting the future. Much of
the company’s value comes from expectations about how high growth will be in the
future, how long this growth can be sustained, and the quality of this growth, all of
which are difficult to forecast. In particular, the rate at which growth rates will drop
as the company becomes bigger will be a key factor determining its value.
Estimating risk parameters from stock price data can yield strange values, and the
firm’s risk profile will change as its growth rate changes.

14. THANK YOU