Planning is to guide your decisions and make your business better—not to just find research numbers.
You sell value, remove obstacles and focus on getting sign off from the customer.
You are paid to focus entirely on hitting your number.
Today, market information is a matter of sifting, sorting, digesting, figuring out what’s important, and giving it context.
If the past was about needles and haystacks, today it’s about finding the right needle in a mountain of needles.
For example, a retail shoe store needs to know about individuals living in a local area; a graphic design firm needs to know about local businesses; a national catalog needs to know about households and companies in an entire nation.
As you think about your potential customers, make sure you’re clear on the differences between the entire market, (total potential market), your reachable market, and your share of the market, or the number of customers you’ll actually land. I would define a movie theater’s SAM as the number of theater tickets sold per month or year in its geographic area.A plan for a video game that helps autistic children starts with the story of a specific child and his parents.A pitch for a new medical technology starts with two aging baby boomers.Divide a population by income and you have a different segmentation, sometimes called economic segmentation, useful for lots of businesses.Auto retailers, restaurants, travel agencies, and sellers of luxury goods, to cite a few examples, might set strategy and tactics based on this segmentation. Some creative segmentation schemes are based on psychographics, which are collections of personalities, values, opinions, attitudes, interests, and lifestyles.Others might make it the whole population, based on the assumption that even people who didn’t go to the movies during that time period could still choose to go tomorrow.. I would divide a theater’s tickets sold per month or year by the total tickets sold in the whole area for a month or year.So for example, if this theater sold 30,000 tickets last year and all the theaters in the area sold 100,000, then this theater had a 30 percent share.Sales reps control their own fate, the effort and skill put in is a direct result to their output.With that in mind, you can understand the challenges a sales rep might face as they transition to management.The problem with all of these terms is that they are buzzwords.I prefer to talk about the potential market and current market share and to make the potential market the available whole market.