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Sales business development job plays a vital role when you are thinking of overall strategic business development. It is not an easy task and the managers have to see to various factors before making organisational changes. Now there are various external factors playing an important role in the overall planning process. International competition, economic uncertainties, levelling off of productivity and output, environmental problems are some of the major challenges. Hence it becomes vital to plan out a systematic procedure to making new business strategies. Define a model which will help in implementing the course of action.

Experience Curve Concept: It is a fact that no sales job can make profit from day one. The initial period in a new business is not immediately profitable and it takes time to attain the break even point. A sales business development job demands lots of experience and patience to reach a level where one can attain a profitable amount. Management makes random decisions to decide the level of output which will reflect the optimum level. Some companies develop own learning curves in areas of production and manufacturing. The experience curve effect is known to cover administrative, capital, research and marketing costs. The historical perspective of the experience curve concept was first seen in the aircraft industry as here the initial expenditure is very high and any reduction to the manufacturing cost of succeeding units becomes apparent.

Implications: The importance of experience curve is known to the entire corporate market especially on the marketing objectives and the pricing decision. As per the theory, lowering of prices helps to acquire a higher market share. But this extra profit is reinvested for further growth. Once the growth is saturated the funds can be diverted. There is a transfer effect between similar products at different locations. In short all producers should achieve and maintain cost-reduction potential of the experience gains in order to survive, this is one of the survival strategies. The application to Marketing is another of such strategies. It needs the sorting of various marketing costs and projecting behaviour for various sales volumes. Analyses show close relationship between increase in cumulative sales volume and decline in cost. Sales business development jobs also follow these principles. The market on the whole stands on the above mentioned business development strategies.

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