THE ENTERPRISE THEORY - SALES ACTIVITY OF THE COMPANY . Tomáš Pražák SALES ACTIVITY •being able to produce a product (provide a service) is not enough for continued existence - the company must be able to sell its products (services) to customers •termination of the material flow by the company •the sale price must: ocover all business expenses oenable the company to further develop •sales activities are the responsibility of the sales department Sales activity •sale: oseller: transfer of ownership right to use to the buyer obuyer: obligation to pay the purchase price •activities before the actual sale: ostrategy creation and sales planning oreceiving orders and order management osales analysis ophysical distribution omanagement of stocks of finished products and their storage opacking and adjustment oforwarding the invoicing order Business plan •a basic tool for managing the company's business activities •the build usually takes place in these stages: omarket diagnosis omarket forecast ogoal planning omarketing mix planning oplanning of logistics activities obudgeting Marketing and its techniques •customer oriented process •goals: orecognize the customer's future needs ounderstand the customer's needs osatisfy the customer's needs and turn them into profit •marketing goals must be aligned with company-wide goals o Product •which products to provide to which customers •the product can: oproduce in its current form oproceed to innovation odiscard and replace with another •decisions about quality, design, features and size, product packaging Promotion (marketing communication) •implemented through five basic tools: opublic relations (PR) opersonal sale osales promotion oadvertisement odirect marketing •online and offline form Price •the amount of money agreed upon at the time of sale •decisively determines the success of the sale •in developing countries and in economically weaker sections of the population, it is still the only factor deciding the purchase •historical development: ofirst different prices for different buyers osince the end of the 19th century, the policy of uniform prices oat the turn of the 20th and 21st centuries, a return to the original mechanism for setting prices Place •this is where marketing meets logistics •determining the method (which channels, which ways) of selling the product: osales representatives owholesale and retail oInternet Logistics •a scientific discipline that deals with the management of the material flow from the place of origin to the place of consumption, including the management of the flow of necessary information •within the company linked to each of its functional areas •in sales ensures good availability of products, reliable services and efficient operation •is responsible for providing customer service at the level expected by the customer Distribution channel •summary of organizational units, institutions or agencies implementing distribution •direct channel: odirect sale of the manufacturer to the user of the product odistribution under the control of the manufacturer ohigh distribution costs •indirect channel: oexternal institutions and intermediaries (transporters, public warehouses, wholesale and retail companies) stand between the producer and the user oshifting a significant part of costs and risks to an intermediary olower sales for goods sold for manufacturers Processing orders •summary of activities: otaking orders from customers oorder status check oCommunication with a customer othe processing of orders itself oensuring the availability of goods for the customer ostock control ochecking the customer's credit limit oinvoicing and checking the status of receivables Packaging •from the point of view of logistics, they perform different tasks than in marketing •properly designed packaging will allow: oone-time handling of the product ogood storability omake maximum use of means of transport and storage space oproviding the necessary information oeasy access to the product for the customer orepeatability of its use or possible recyclability Transport and transportation •without moving the product from the place of origin (production) to the place of consumption (to the customer), the sales activity cannot be implemented •one of the most expensive logistics activities •significantly contributes to the required level of customer service Storage •it allows the products to be stored and preserved for later consumption - maintaining or increasing the quality of the products •the connecting link between the manufacturer and the customer. •choice of number, size, location and type of warehouses, their ownership and type of handling equipment Customer service •a customer-oriented philosophy that connects and manages all components connected to the customer within the established ratio of costs and services provided •the output of the logistics system in the company •a measure of how a logistics system works in terms of creating utility value of space and time for a particular product •the level of service provided has a direct impact on the market share and thus also on the business results of the company The company produces 120,000 pieces of product A annually at a cost of CZK 150 per piece. Until now, he sold his products wholesale (with collection at the company) at a price of CZK 190/piece. However, he could also sell his total production to retailers at a price of CZK 220/piece. In that case, however, he would have to bear transport costs in the amount of CZK 33/piece and costs associated with the activities of two business travelers (+ car) in the total amount of CZK 700,000/year. Which sales route should the company choose? Wholesale VH = (120,000 x 190) – (120,000 x 150) = 22,800,000 – 18,000,000 = 4,800,000 CZK Retail VH = (120,000 x 220) – ((120,000 x 150) + 120,000 x 33) + 700,000) = 26,400,000 – 22,660,000 = 3,740,000 CZK