Sales Channel Analysis Template

Maximization of sales is the primary motive of any kind of business. This target can be achieved by number of ways. Effective marketing campaign to attract potential customers is one of the many tactics that companies opt for widening their customer base. Others involve doing research and development ahead of launching any product in the market to ensure its success in the market. Evaluation of all the activities that were performed to increase sales is also necessary, without which business is like living in the darkness.  Sales channel analysis is done by businesses to pinpoint any problems in the whole process of sales and marketing. Such potential flaws can be eliminated by carefully Analyzing the Sales Channel. Sales channel analysis gives information about how and where a product should be sold to generate the maximum revenues.

In sales channel analysis, companies have to look for the alternative channels that are available to it for delivering its product to the end consumer. Not all options that are mentioned here will be available to every kind of business because the size of company and its revenues largely determine the availability of any of the option.

These is option of Sales Channel Analysis

  • Either directly selling the product to consumer. (But this option sometimes isn’t feasible, if a business runs on a large scale; large sales team will be required to perform this task of direct selling. This in turn will increase the costs associated and revenues will automatically decline).
  • Use of a distribution channel of retailers and wholesalers. (This option is quite feasible because costs associated are minimal and it can reach out to large customer base within no time and very easily).
  • Sometimes both options are used in a combined form.
See also  Direct Marketing Analysis Template

Now there are many advantages and drawbacks associated with all three options. These can be studied separately to get a full understanding of the whole process. But its understanding is crucial for performing this analysis.

Sales Channel Analysis basically answers number of questions

  • Which channels are we using?
  • Which channels are most profitable for our business?
  • Which channels should we use for future sales?

Answer to all of the above mentioned questions is given by the sales channel analysis. Understanding of all these factors is crucial for the success of any business. While any business is performing sales channel analysis it can either go for primary data or secondary data. Research based on primary data will require the companies to ask key questions regarding sales to distributors, opinion-leaders, customers and other financial institutions.

These questions can be :

  • What distributors are charging for transportation and adding in the final price being paid by the customer.
  • What channels are being used by competitors to generate heavy sales?
  • Whether competitors are providing credit to their customers or not
  • Whether customers are satisfied with the delivery of products.

And if company opts for secondary data then analyzing the perspectives of other successful business enterprises and their strategies can be helpful.


Sales Analysis Charts Data in Excel




Download Sales Channel Analysis Template