The money collected in exchange of goods and services provided where for sales recognition payment is not necessary in financial statements , there are accounting guidelines and principles which states that a sales can only be recognized when the transaction is already realized or can be easily realized. This means for a sale the payment has already received by the company or has high certainty of receiving the payment for the exchange of goods and services. Sale is a contract, which involve transfer of possession and title (ownership) of good or entitlement to a service, in exchange of money value. There are four necessary elements which presence makes a sale a valid sale. First, both and seller are competence and willing to enter into a contract second, there should be mutual agreement between buyer and seller on the terms of exchange third, sale of a thing which is capable of being transferred and fourth, for a valid sale it is essential that consideration in money is paid or there is high certainty of receiving in future.
Sales is different from marketing
Sales are very different from marketing although both of these activities aim at generating higher revenue for the business. Moreover both the sales and marketing are so closely interlinked that people usually get confuse with both of terms and they hardly realize the differences between the two. Like sale means to match demand of customer with the products that company is currently offering. Whereas marketing is a broader term which includes activities like selling a good or service , developing relationship with clients and making strategies for finding future needs and challenges. Marketing focuses on broader aspects which include promotion, pricing, distribution, packaging, research and fulfilling customers demand whereas sales focuses on fulfilling sales targets and objectives. Marketing concentrates on multiple processes involve in marketing concept and practice such as research and analysis of market, product and pricing strategies, budgets, techniques, practices and etc but sales process usually involves one or two process. Marketing has much wider scope and long term horizon whereas sales have less scope and short term horizon.
Sales promotion is a promotional technique which uses unique short term techniques to push up sales and persuade buyers to buy more and more. Like as a reward marketers offer buyers something lower the actual price, money back policies or include additional value added material to actual quantity in order to push up sales. Sales promotion is used in both consumer as well as business market by wide range of organizations. Sales promotion is different from advertising as usually people get confuse with these two terms. The objectives of sales promotion is creating product awareness in the market as some of the techniques of sales promotion are so effective in building product awareness for the first time product in the market. It is very important at introduction stage of a product also some techniques are very useful in developing interest of customer and attracting them toward the offers and other rewards of sales promotional techniques. Also such promotional techniques accelerate demand in the market as special promotional offers stimulate buyers to pick up products which offer a scheme. Along with this sales promotion tools and techniques also provide information to the consumers of the market and also reinforce the brand image. Companies uses different types of sales promotional techniques to stimulate demands of the customers and such techniques are free trail, free gifts, contests, sampling, special pricing, free vouchers and etc.
A sale strategy is company’s plan which aims at gaining competitive advantage for its brand or product. Effective sales strategies enable sales force to hit target consumer market and help in communication the meaningful message to customers. For the success of sale strategy, sale executive must know and can make customer understand that how product or service can solve it problem. In order to develop an effective sale strategy the overall analysis of business sale cycle and study on long term sale goals are must. After planning a long term sale strategy for long term goals of company, thereafter sale manager should concentrate on monthly and weekly sale strategy. Business usually uses two basic types of sales strategy, which is direct sale strategy and indirect sale strategy. In direct sale strategy they describe each feature of competition’s product and compare it with their own product. In indirect sale strategy they demonstrate features not available in competition’s product.