Success in the market depends not only on the financial and production capabilities of the enterprise. The organization’s sales policy decides a lot. As an ancient proverb says, victory loves preparation. Therefore, it is necessary to formulate a sales policy, which considers how the company's products will be brought to the consumer.
Introductory information
It all starts with planning. It is necessary to consider and choose the best option for bringing products to the consumer in the quantity, quality and place that is required. Mandatory in this case are the assessment and consideration of the possibilities of satisfying customer requirements. It is necessary to pay attention to possible sales problems. Now they are for the most part quite structured and represented by quantitative elements. Qualitative problems are unlikely with proper organization of activities. To avoid them, the development of sales policy should be guided by such criteria as price, quality, consumer properties, service time, international trade restrictions, distribution conditions. Obtaining an advantage in at least one of the parameters (compared with competitors) can play an important role. So, for example, the enterprise that serves consumers the fastest is more likely that the potential sales area will be expanded. Which, undoubtedly, will positively affect the prospects. If the organization has been operating for a certain period of time, then an analysis of sales policy will help to determine whether the direction of movement is adequate.
About relationship
As a promotion, any form of communication can be considered, through which the company informs and convinces the population, and also reminds of its services, goods, social activities or other points that affect society in a certain way. Information may be transmitted through company names, storefronts, packaging, exhibitions, through direct contacts of representatives with customers or through the media. This is an important element, without which an effective marketing policy is unthinkable. Examples of results for the successful implementation of this aspect are:
- The volume of sales of products increases, thereby increasing the efficiency and profitability of the enterprise.
- Favorable information is created about the company, the goods and services it offers, which makes it possible to stand out from competitors.
- The popularity of existing products among customers is maintained.
- Recognition is provided for new products and services.
- An image of novelty, low prices or prestige for the products offered by the enterprise is created.
At the enterprise
Sales is a set of procedures aimed at promoting finished products in the market. This means the formation of demand for goods, receipt and subsequent processing of orders, their packaging and preparation for shipment to the buyer, shipment or movement to the place of sale / destination. The organization of payments for products also applies to sales. Moreover, the main goal pursued is to realize the economic interest of the manufacturer by satisfying the solvent demand of existing consumers. Sales is the final stage of ongoing business activities. But in market conditions, its planning must precede the production stage.At the same time, it is necessary to study market conditions and the possibility of developing a promising direction (in demand). It is also necessary to take care of an adequate system of organization and control to ensure the competitiveness of the company.
What is the marketing policy of the company?
In the broadest sense, this should be understood as the selected set of strategies and a set of measures that affect the range of products, their pricing, sales promotion, demand formation, conclusion of sales contracts, and transportation. To rationally orient the sales policy on:
- Profit in the current period, together with the formation of prerequisites for maintaining this situation in the future.
- Long-term market stability of the organization and maintaining the competitiveness of its products.
- Maximum satisfaction of the existing solvent demand of consumers.
- The formation of a positive image of the company in the market with its subsequent recognition by the public.
The sales policy of the enterprise is formed on the basis of the goals and objectives that correspond to the business concept of the organization, as well as the adopted guidelines (course of action). At the same time, attention is paid to what the company is, in which it is better than competitors, what place it wants to occupy in the market, and similar issues. Sales policy significantly depends on the external and internal conditions of the organization. Its development is always accompanied by their analysis along with a study of the organization's capabilities.
About operating conditions
The market provides specific manufacturers with various marketing opportunities. Along with this, he imposes certain restrictions on their activities. To avoid disappointment, the manufacturer should be interested in the effectiveness of marketing products. He is obliged to know the real state of affairs, and solely on this basis it is necessary to make informed decisions about the sale of goods. The sales policy of the enterprise must be built on the basis of an orderly analysis of requests and needs. Moreover, it is necessary to focus on these parameters among the target group of product buyers. Keep in mind that requests and needs are constantly changing. In the conditions of the modern market, often an effective sales policy should constantly contribute to updating the assortment and increase the variety of services offered. For example, the introduction of warranty service, user training, operation advice and the like. At the same time, the restructuring of the organization under existing conditions should be carried out faster and more efficiently than competitors. And a prerequisite is to take into account the interests associated with maintaining and improving the well-being of both the enterprise and the consumers of their products. The development and improvement of the sales policy should be carried out with the understanding that the supply, production, technological, innovative and financial aspects of the activity depend on it.
What implementation options are there?
If we talk about classification features, then two of the most important should be distinguished - the basis of the organization of the marketing system and the number of intermediaries. But despite this, the relationship between the manufacturer and the end users can be implemented in many forms and forms. A significant role in this state of affairs is played by intermediary companies. But the most active role nevertheless belongs to the manufacturing company, because it is she who selects the sales system taking into account risk factors of product distribution, evaluating possible costs and profits. And everyone else just adapts to it. Types of sales policy can be considered on the example of very diverse criteria. This is what we will do now.
Species diversity: by the number of channel levels
Two main types are distinguished here:
- Direct channels of distribution. They suggest the creation of a system when products move from a producer to a consumer without the involvement of independent intermediaries. This approach is often used by enterprises that want to control everything that is possible and seek to establish close contact with consumers. In addition, this is the case when companies have limited target markets. There are three main ways to implement this approach: it is package trading, delivery and through shops owned by the enterprise.
- Indirect channels of distribution. In this case, the product moves from the manufacturer to an independent participant and only then to the consumer. This option attracts firms that want to expand markets and increase sales. They are ready to abandon many marketing functions and their associated costs. This is accompanied by the loss of a certain share of control over sales channels and contacts with consumers.
Indirect channels can additionally be characterized by the number of levels. Each of them has a certain intermediary who is entrusted with the work of approximating the ownership of the goods and the products themselves to the final buyer. The length allows you to indicate the number of levels available. Let's take a closer look at this:
- Single level channel. Provides for the presence of only 1 intermediary. It is a retailer or sales agent.
- Two-level channel. Provides for the presence of two intermediaries. In the consumer market, practical implementation is usually embodied in the form of wholesalers and retailers.
- Three-level channel. Includes three intermediaries. A distinctive feature is the presence of a small wholesaler between a large and a retailer.
Species diversity: by the number of intermediaries
This group of sales policies received the second name - market coverage strategies. There are three of them:
- Intensive distribution. In this case, the manufacturer seeks to ensure the availability of products in the largest possible number of outlets. Usually these are consumer goods. For them, the convenient location of the place of acquisition is mandatory.
- Exclusive distribution. In this case, the number of intermediaries is strictly limited. This approach provides for the conclusion of exclusive distribution agreements, according to which sellers are obligated not to trade products of competing brands. This is found in the practice of selling new cars, some large household appliances, and the like. When granting exclusive rights to distribution of goods, the manufacturer hopes that a more aggressive and skillful sale will be organized. But that's not all. In this case, marketing pricing, incentive issues, the level of service, and the provision of services are also relevant. All these issues are negotiated between the manufacturer and intermediaries. Usually this is done in order to elevate the image of the goods and establish higher sales margins.
- Selective (aka selective) distribution. This is a cross between the two previous points. In this case, the number of intermediaries involved is less than the total number of entities that are ready to engage in the sale of goods. Selective distribution is used in order to achieve the desired market coverage with strict control and at the same time lower costs than with an intensive approach.
Species diversity: by the nature of the interaction within the channel
To achieve these goals, various approaches can be used. From an organizational point of view, it is necessary to distinguish the following types:
- The traditional system. It is formed from an independent manufacturer, one / several wholesalers and retailers.Each component of the channel is an independent enterprise that seeks to maximize its profit, albeit to the detriment of the entire system. None of the members can control the activities of everyone else.
- Vertical system. It emerged from the traditional in the process of development, adaptation to changes in the external and internal environment, under the influence of competition. In this case, the sales policy stipulates that the entire system consists of participants, which act as a whole that pursues common goals and interests. In this case, someone alone has significant authority. He may grant the right to franchising or have other opportunities to ensure fruitful cooperation. Vertical systems appeared due to attempts by stronger participants to control the behavior of the channel and are a logical result of the desire to prevent conflicts between individual members. Such an approach is economical in terms of size, the presence of large market power and eliminates duplication of effort.
Conclusion
So it was examined what a sales policy is, how it is formed, what conditions it depends on, as well as species diversity with examples of implementation in real conditions. This is quite enough to get an idea about the subject of the article. Although if you detail the information and consider step-by-step work, you can write a lot of useful information.