For the next eight weeks we’ll be discussing topics related to brand management and marketing analytics. If you haven’t already, be sure to check out our previous posts for more insights and tips on marketing in higher education.
In today’s post we’ll briefly discuss what a sale is and why it’s important to have an accurate definition.
What is a sale?
The average person may think of a sale as a transaction where a company sells an item to a consumer. In reality, a sale can be much more complicated. This definition may not consider B2B (business to business) transactions, among other things. Most goods actually go through a longer pathway before reaching the final consumer.
The image below illustrates a more realistic sales pathway. Sales can begin at the manufacturers, who sell to wholesalers, who sell to distributors, who then sell to retailers. The retailers are the ones who usually sell directly to consumers.
Let’s use Florida International University (FIU) merchandise as an example. The average consumer who’s shopping in the on-campus bookstore may assume that there are only two stages in the sales pathway. For them, Barnes & Noble is selling the shirt, and they (the consumers) are buying it.
In reality, Barnes & Noble is the retailer, who is purchasing from a distributor, who purchases from a wholesaler, who purchases from a manufacturer. This long pathway may explain the high prices for merchandise in the on-campus bookstore, but that’s a conversation for another time.
Why is defining a sale important?
Now that we’ve seen the many possible steps in a sales pathway, it’s easier to understand why it’s important to have a clear definition of a sale before we begin to analyze data.
As marketers, we need to be sure we’re interpreting and analyzing the data that corresponds to the matter at hand so we can provide accurate insights. You wouldn’t want to interpret sales data at the retail level when what you actually need is data at the manufacturer level.
Have you ever run into a situation where data was not clearly defined? How has that affected your work process? How have you approached the situation? Do you have any tips for ensuring clearly defined sales data that has helped you overcome this obstacle? Let us know in the comments!
Before you go, please remember to sign up for our newsletter to reminded of when we upload new content to help take your college/university to the next level. Thanks for visiting and we look forward to seeing you again next week!