Thesis: Sales management: problems and prospects. Sales management at the enterprise Improvement of sales management at the enterprise
INTRODUCTION
CHAPTER 1. Scientific and theoretical foundations of the sales management system
1.1 The concept and essence of the sales process
CONCLUSION
APPS
INTRODUCTION
In the conditions of a developed market, commerce acts as a tool for managing a trading enterprise. Commercial activity can be defined as a set of economic relations regarding the purchase and sale for the purpose of making a profit and meeting the needs of the population on a mutually beneficial basis.
Today, trade is one of the most relevant and most powerful budget-forming areas of the Russian economy. According to the latest data, it is more than twenty percent of the gross domestic product.
Under market conditions, trade enterprises establish fundamentally new relationships with partners, regulators characteristic of a market economy operate, and commercial principles are developed aimed at the purposeful sale and purchase of goods.
Currently, commercial enterprises are guided by the needs of buyers. The orientation of the enterprise, taking into account market needs, the nature of consumers, the characteristics of the product and the presence of a competitive advantage, is expressed in its corporate mission. The basis of the corporate mission is the task of meeting the needs of customers, carried out in a particular market based on the real competitive advantage of the enterprise. The organization of the commercial activity of an enterprise is determined by its competitive strategy and management of activities in all major areas, including the sale of goods.
The purpose of this work is to consider the system for managing regional sales in the rolled metal market.
To achieve this goal, it is necessary to solve the following tasks:
Consider the scientific and theoretical foundations of the sales management system;
Analyze the regional sales management system at SibMetallTrans LLC;
The object is SibMetallTrans Limited Liability Company.
The subject is regional sales management.
The theoretical and methodological basis of the study was scientific work in the field of sales management, generalized the experience of using various sales promotion systems at enterprises based on the research of both domestic and foreign authors professionally involved in the problems of sales management. Among them are F. Kotler, P. F. Drucker, J.-J. Lambin, G. J. Bolt, S. Repp, A. N. Romanov, A. P. Durovich, V. E. Khrutsky, E. P. Golubkov and others.
Research methods include: monographic analysis, observation, survey.
CHAPTER 1. Scientific and theoretical foundations of the sales management system
1.1 Concept and essence of the sales process
Despite the fact that the sale process is quite technological, the sale cannot be reduced to stages and actions. The sales manager cannot memorize phrases and give them out at certain stages of the conversation. Even if he memorizes them, it will look unnatural. The sale must be felt. In my opinion, there is probably no better comparison of the sales process than with the dance of a man and a woman.
But what is the firm's sales policy?
The firm's sales policy should be directed towards establishing and maintaining ongoing relationships with the firm's customers. This definition does not focus on receiving a specific order or making a single sale and purchase act, and this approach radically changes the essence of the process under consideration. Moreover, the very fact of the sale in this interpretation puts emphasis in a different way: in addition to the pure function of "pushing" a product or service to the buyer, a significant part of the process is the function of "recommendation", when the seller acts as a consultant of the product or service being sold. When selling to corporate customers, this function takes a dominant position.
The first component of the sales process is the actual product or service. He (she) may be visibly tangible or invisible, or appear in the form of an idea. An example of the latter can be organizations such as the Red Cross, religious societies, political parties - they are the ones who sell ideas. Therefore, selling in a psychological sense is a system of persuading a buyer of the benefits that a given product, service or idea can provide to that buyer if the act of purchase is made. The buyer will want to commit this act only if he realizes these advantages. Hence the first task of the seller is to make obvious the value of the item for sale to the buyer. Thus, technical factors need to be translated into advantages and benefits for the client. The seller must influence the buyer's ideas about the value of what he is offered for purchase. The products themselves have no value, they arise from the subjective ideas of this buyer. By influencing ideas, the seller influences the value of the product. Naturally, one should not forget about the parameters of this product - they are objective in relation to the seller, but even the heaviest buyers have points on the basis of which they generate their subjective judgments.
The performance and efficiency of using a product does not always depend on the material, construction or design. In certain cases, service, especially after-sales, plays an important role in the purchase decision. This is especially true for industries with small differences in prices and quality of goods. This is where service becomes the real basis for competition. Therefore, service is the second component of the sales process. With regard to high-tech areas, this raises the question: "Where does the actual service begin?" Naturally, not after the delivery of the product to the buyer, although after this has happened, complaints, repairs and preventive maintenance appear. In this sense, service begins with the installation process, and this is currently a serious object of competition.
But there is an even earlier step. In some cases, a sale begins with providing information to a potential customer. In this regard, the dialogue between the buyer and the seller in technical industries can also be considered as a service, since this dialogue guarantees optimal performance for the client.
Since the seller influences the buyer's ideas about the value of products and services, he also influences his attitude towards price. Price is the third component of the selling process. The client always compares the price and value of the product (service), even if these are repeated orders (this comparison is done earlier - at the first order). An exception is the fact of impulsive purchases, and in the conditions of sales to corporate clients, such facts are less common than when selling to retail clients. The success of a firm is not necessarily linked to price. Well-known firms are not always on the list of those who play "cheap". A low price may also arouse suspicion. There is a well-known saying in the USA: "You get what you pay for". The price can be at the expense of quality, and when selling to corporate clients, the latter prefer quantity discounts rather than low prices. Thus, price is a very delicate aspect of the selling process.
The fourth component of the process under consideration is closely related to the price - the range of products and services. The company can go in the direction of specialization of the range, or vice versa - to expand it. There are no bad or good approaches here. With a wide range of products, the customer can shop in one place, but the seller has less flexibility in pricing. With specialization, large discounts in prices are possible. It is the seller's task to explain in specific cases what advantages the company's assortment policy brings to the buyer.
The fifth component of the selling process concerns the delivery channels for the product or service. The key issue here is the number of stages that the firm creates between itself and the end customer. If the product is simple, then its implementation can go on a wide front. If the product is more complex and involves maintenance and a large sales procedure, then it is advisable not to entrust these functions to an intermediary. It is better for a company to be responsible for its own product.
The last part of the selling process is the promotion of the product or service. The commercial offer must be provided to the client at the right time, therefore, contact with the client must be built on an ongoing basis. And the frequency and volume of contacts determine the company's need for the number of sellers. The key question of product promotion is the question: "How can I deliver (display) my product easily, conveniently and cheaply to my client?" Advertising is just one answer to this question, technology products require "bringing the customer to the product".
Summarizing the components of the sales process, we can distinguish four parameters (features) of the dialogue between the seller and the buyer.
The sales function cannot be considered only in the "easy version", when the seller only needs to place an order (purchase) of the client. Everything outside of this operation is the determining factor for success. Calling an employee a salesperson only to perform technical operations (making a purchase) is a waste of company money.
The seller's function is the consultant's function. It is this statement that determines its functional status and level of payment. Almost any product requires instructions for use, and these often need to be repeated several times. Even a satisfied customer who doesn't need to be pushed to buy your product needs professional advice and encouragement.
Provision of information. Even if the client does not really require it, it must be provided to him.
The key task of the seller is to awaken the instinct of ownership (property) in the buyer. By influencing the values of the client, we thereby push him to positive decisions for the seller.
The real selling process begins when the potential buyer says no. And he often says "no"! No client knows exactly what will be good for him tomorrow. His life can be compared to a constant journey of discovery. Throughout the journey, he is looking for new and unexplored places, and his attitude towards them is constantly changing. On this journey, he needs a guide, whose role is played by the seller. Not every client will easily agree with this. The seller quite often resists negative attitudes towards him or the product. The buyer may view the seller as a person who wants to paint a "rosy picture" instead of honestly describing the pros and cons of a product or service. He will always compare the information he receives with what he knows, or with the opinions of others, and will strive to distinguish sincere enthusiasm from false.
The six components of the sales process mentioned above are detailed in the following table 1.1.
Table 1.1- Six Components of the Selling Process
| Product (product, service, idea) | Service | Range |
1. Benefits 2. Appearance 3. External atmosphere (aura) |
1. Before delivery 2. During delivery 3. After delivery |
1. Set of different product lines 2. Differentiation 3. Specialization |
| Price | Delivery channels | Promotion |
1. Price determination 2. Determination of price ranges 3. Definition of discounts |
1. Choosing the right channels 2. Determining the levels (iterations) of product (service) movement 3. Choice - own or intermediary implementation system |
2. Consulting 3. Actual sale |
Company image: 1. Regarding the product 2. With respect to the customer specifically 3. In relation to the entire community of buyers |
||
This list is supplemented by another list. The reason for this addition is that customers often make their purchasing decisions based on this factor alone. The company's image can be progressive or conservative, national or international, attractive or negative.
We have given the components of the sales process. In fact, six sections of the intra-company document "Policy of the company in the field of sales" were considered. Each dialogue of sale and purchase (seller and buyer) is a reflection of this policy in miniature.
The sales funnel (Figure 1.1) illustrates the two key pillars of the sales process, namely:
The selling process can be broken down into different stages - each of them requires specific skills, methods and style;
The final sales volume is related to the "input volumes", i.e. you need to pour more prospects into the top of the funnel in order to get more wins at the exit.
Figure 1.1 - "Sales Funnel"
1.2 Sales management (planning, organization, motivation, control)
Sales management requires an understanding of the sales process itself, knowledge of the basics of management and marketing, the application of appropriate management skills, and the possession of effective business tools.
Organization of the sales process - who should do what
Properly organized sales are at least half of the overall success. Regardless of what your company sells - plasma TVs or pantyhose - the sales process looks the same and can be divided into 3 key stages: finding new customers, actually selling and documenting the transaction. If the process is so easily broken down, why does your sales manager call new customers and prepare invoices? After all, the principle of division of labor is as old as the world and no one has canceled it yet.
The main and only task of a sales manager is to sell. Sell to existing customers who are assigned to it. After all, he knows how to sell best, so let him do just that. Hence rule 1: "The sales manager should only sell to assigned clients and do this 100% of his working time."
Sales managers are the key people in any wholesale company, because it is they who, directly interacting with customers, bring the company money. Do you really want these gods to print invoices and fill out shipping orders? That's what sales assistants are for.
There are many reasons why it is beneficial for a company to hire sales assistants.
First, this resource is so inexpensive that most often the monthly cost of it will pay off with just one additional transaction that the sales manager will make in the free time (the average salary of a sales assistant does not exceed $450 per month).
Secondly, this is the best way to create a talent pool. When you need another sales manager, you won't need to run to your HR department or recruiting company. you will surely find a worthy candidate among the sales assistants already working in your company. Capable assistants, especially if the company has programs for their development, can take the position of a manager after 6-9 months of work in the company. Take a close look at these people - they do not need time to acclimatize in the team, and they already know everything about the sales process in your company!
And thirdly, don't forget rule 1 - sales managers must sell 100% of their time. If you don't give your managers assistants, then how else will you follow this rule?!
What is meant by sales development? By and large, there are only two components: the search for new customers and the "awakening" of "sleeping" customers, i.e. customers who have stopped buying from your company or have significantly reduced the share of their purchases from you. But these two components hide truly golden opportunities! After all, it is the acquisition of new customers that allows your company to increase turnover and market share.
The sales development manager should only deal with sales development. Acquiring new clients for the company, he transfers them to managers who carry out regular sales, controls the first few transactions, and after that, at certain intervals, monitors work with the clients transferred to him. From this functionality, we extract rule 2: "The search for new customers and work with "sleeping" customers should not be handled by a sales manager, but by a separate person - a sales development manager."
In figure 1.2, you can see how harmonious and logical the sales process becomes, brought into line with the rules outlined above. Now, each stage in the sales process has one responsible person - the "stage owner".
Sales planning - where should sales plans come from.
Figure 1.2 - Sales process
Let's now try to answer the next important question: how to plan sales after the sales process has been rebuilt. Surely you have more than once met with the implementation of the monthly sales target by 74% or by 128% (in both cases, the figure is very different from 100%). How to set monthly plans? And how should they compare with quarterly or annual plans?
Let's start with long-term planning. It is absolutely pointless to argue that an annual sales plan is necessary. After all, if it is not there, then how to plan working capital or advertising budgets? However, the attitude towards planning for the year ahead should be reconsidered.
Now more than ever, we are doing business in an era of constant and rapid change, in an era where reacting quickly to new opportunities often brings more money than sticking to a long-term strategic plan.
Imagine that your company sells metal structures. Six months after the approval of the annual sales plan, a large company enters the steel structures market, surpassing all players operating in the market in terms of financial capabilities, distributes commodity loans right and left, and some of your customers leave you just because you simply cannot offer the same conditions . At the end of the year, you find that you have achieved 72% of your annual sales target. Sadly. But is that a reason why all of your sales people don't get their annual bonuses? No, it is not, because at the time of the approval of the annual sales plan, the balance of power in the market was different.
Thus, we have come to a very valuable rule number 3, which is rarely used in practice to this day: "The annual sales plan should be solely a guide for company employees, the emphasis in planning should shift to operational plans - quarterly and monthly."
Now let's consider the actual operational planning and understand where the figures should come from in the plan.
To begin with, a simple question: who knows better than anyone in the company how much a particular customer is able to buy? The answer is just as simple: of course, the sales manager who works with this client. Therefore, when planning sales for each client, ask the manager working with this client how much he will sell to him in the next month / quarter. If you provide the manager with the most detailed information about the company's plans for this time and provide all the necessary statistical calculations about the client (Figure 1.2), then you will receive the most correct answer to your question.
At the same time, you should not be afraid that the sales manager will underestimate the numbers, because. any manager understands that his career growth is directly related to the increase in personal sales volumes.
The sum of personal plans of all sales managers automatically gives the company's total sales plan for the month. So we came to another rule 4: "The operational (monthly or quarterly) sales plan of the company should be formed from the bottom up (as the sum of personal plans), and not from the top down (as a figure that must be proportionally divided among all managers)".
Motivating sales managers - how to get the most out of the human resource in your company
Speaking of motivation for sales managers, I would like to paint a few strokes to the picture, but not the whole picture, because. magazine space is still limited.
Tip #1: Keep the manager's scorecard as simple as possible so that the manager can easily calculate his current results on any day of the month.
Tip #2: If you already have a sales development manager, i.e. source of constant emergence of new customers, then inscribe in the motivational scheme of each sales manager a plan for new and "sleeping" customers.
Tip #3: Don't be afraid to differentiate salespeople. Even in a small company there should be at least 3 categories of managers, and in large companies this number can reach up to 10. At the same time, clearly write down the rules for assigning each category and the motivational scheme for each category. In other words, the manager must understand exactly what results he must achieve in order to assign a higher category, and how much more he can earn.
Tip #4: All sales plans and incentive schemes should be prepared with managers, not for them. If you manage to involve managers in this process, it will increase the self-importance of managers, give them confidence in the fairness of sales plans and motivation systems, and, as a result, increase their loyalty to your company.
Using these strokes, we get rule number 5: "To win the heart of a manager, draw a path to success with him, not for him."
We decided to act - how to implement changes in the company's sales system
So, we decided to make changes to the sales system of your company. First of all, we need to answer ourselves the following question: does the existing sales system need tweaking or rebuilding?
We will only consider the customization case. All the changes proposed above can be divided into 3 main blocks - reorganization of the sales process (division of labor), changes in the planning system and adjustment of the motivation system. You won't be surprised to learn that this is the sequence in which changes should be implemented. At the same time, however, the implementation of one stage may well overlap in time with the preparation for the implementation of the next stage (Figure 1.3).
Figure 1.3 - The procedure for implementing changes in the sales system
1.3 Regional sales management
No matter what changes are happening in your industry, you can still develop a solid customer strategy if you learn to distinguish opportunities from threats, and if you constantly develop the specific skills needed to create stability where there is none. In order to effectively maintain and develop your distribution network today, you must know that yesterday's usual work is today an outdated scheme, and tomorrow it is already a stone around the neck. This program provides a methodology that clearly defines what you know, what you don't know, what you need to find out, and how you can effectively build customer relationships.
Regional markets - markets of a separate region, differing both in location and in the types of goods presented on them, in prices, conjuncture, demand and supply of goods.
The strategic choice of the enterprise is influenced by external and internal factors. External factors include needs and constraints for production; internal factors include resources and potential capabilities of the enterprise. One of the strategies of the enterprise can be a marketing strategy.
The marketing strategy is represented by the management strategy, the coverage strategy and the penetration strategy. This set of key strategies characterizes the marketing strategy as a strategy for the interaction of material (commodity) and information flows in the overall logistics system of marketing activities.
The market coverage strategy is aimed at achieving a certain, the widest possible access of buyers to the product. The coverage strategy determines the choice of the structure of the distribution network, the structure and parameters (length and width) of the distribution channels. Moreover, the coverage strategy determines the choice of the nature and scope of marketing.
According to this criterion, the marketing strategy is divided into intensive, selective and exclusive strategies.
Intensive marketing involves the distribution and sale of goods through an extensive distribution network based on long and wide channels. Selective marketing involves the distribution and sale of goods through a limited distribution network based on specialized and directed channels. Exclusive distribution provides for the sale of goods on the basis of separate distribution intermediaries endowed with exclusive rights.
Exceptional sales ensure differentiated sales focus and maximum sales accuracy. This strategy is distinguished by more effective sales management.
Marketing policy plays an important role in the marketing mix system. The main goals of the distribution policy are to achieve a certain share of the turnover, conquer a given market share, determine the depth of distribution and minimize distribution costs. The main goal is to organize a distribution network for the effective sale of manufactured products.
The process of selecting distribution channels is divided into 4 stages:
Determination of the sales strategy;
Identification of alternative distribution channels;
Channel evaluation;
Choice of partners.
The management of the company, first of all, must choose a sales policy strategy - how exactly the sales system should be organized: through its own or dealer network; through what types of resellers should trade be carried out, etc.
When determining a strategy, the following types of sales are distinguished:
Intensive. This means penetrating as many distribution channels as possible. Mainly used for consumer goods.
Selective marketing is used when a product has a particular quality. In some cases, this type of marketing requires sellers to have special qualifications to assist in the selection.
Exclusive distribution means that a product is sold in one or more locations in a geographically restricted market.
Existing distribution channels provide for three main methods of distribution:
1) direct - the manufacturer directly sells the product to the consumer;
2) indirect - sales organized through independent intermediaries;
3) combined - sales are carried out through an organization with a common capital of the manufacturer and an independent company.
When identifying alternative channels, a list of various existing distribution channels is compiled, which are then compared on a number of factors and the most suitable for a given market is selected.
Distribution channel evaluation factors:
Degree of coverage of the target market;
The professionalism of the seller;
Product demonstration efficiency;
Access paths to this channel.
The following factors are used to determine the channel distribution depth:
Investments;
The ratio of income and expenses;
Possibility of control;
Terms of cooperation;
Competition conditions.
The selection of a reseller is carried out using the following criteria: financial aspect, organization and main sales indicators, products sold by the reseller, total number of goods sold, market coverage, stocks and storage facilities, management, reputation of the reseller.
To solve problems related to sales, the following methods are used:
1) Instrumental - uses such means: visits of sellers, special discounts, advertising.
2) Template (routine) - everything is done according to already established templates: order days, rhythm of deliveries, means of transportation, payment procedure and standardization of ordering.
3) Programmatic - allows, through the use of marketing development programs, to increase sales, and, consequently, profits in excess of the goals set.
Currently, there are two basic concepts in marketing: promotion of goods on the market and distribution of goods on the market. Initially, it may seem that these concepts are identical.
The promotion of a product on the market begins in fact from the moment of its creation and involves the beginning of promotional activities before it enters the market. The distribution of goods is actively carried out when it is well known to the potential consumer. Consider the problem of product promotion in more detail.
Based on the above concepts, there are two main strategies for promoting a product to the market: the "push" strategy and the "pull" strategy. The "push" method involves "power" methods of trade, the imposition of products on the consumer through targeted advertising impact and sales promotion measures on intermediary links. When using this product promotion strategy, the advertising efforts of the manufacturer are directed primarily to wholesalers and retailers. Special offers are developed for them, a preferential regime for the purchase of goods is created. Thus, there is an improvement in the very methods of promotion and methods of trade. The ultimate goal of this strategy is to build such relationships within the distribution channels, when the product is "pushed" to the market along the chain, and the promotion process goes on continuously until the product reaches the end consumer. It should be noted that this type of advertising activity is characterized by high cost and a narrow focus, since it primarily involves working with dealers and agents, which leads to an increase in the cost of industrial advertising and, as a result, a decrease in the cost of consumer advertising (Figure 1.4).
Figure 1.4 - The "push" movement strategy ("push")
An example of the use of the "push" strategy is the organization of sales courses for resellers, increasing discounts on supplied products for wholesalers and retailers, demonstration of goods at the point of sale. When implementing this type of product promotion strategy, it is necessary to carefully work out two main issues: training of personnel who will be involved in the promotion system, and developing an optimal system of discounts. The staff must have full information about the product, be active, friendly, but not intrusive. The discount system is developed taking into account possible long-term cooperation, so you should not initially offer a rather high discount. Here it is better to stick to a gradual increase as the volume of purchases or the term of cooperation grows.
The "pull" strategy means an active advertising campaign directed through the mass media to the end consumer. The latter, having received an advertising message or an additional incentive in the form of a discount, coupon, special offer, asks for a product in the store, thereby moving its owner to order a certain type of product. Accordingly, the reverse chain is built: the retailer orders the name from the wholesaler, and the wholesaler orders from the manufacturing company (Figure 1.5).
Figure 1.5 - "Pull" promotion strategy
Note - Requests (orders) for goods
As a rule, this strategy is used at the last stage of product creation, so that by the time it arrives, the consumer has created one or another attitude towards it. An example of using the "pull" strategy would be an advertisement for toilet soap and shampoo on TV, a clock in a magazine, and so on.
Criteria for choosing a promotion strategy.
Many manufacturing companies find themselves in a situation where they have to choose what kind of marketing and advertising strategy will be most effective in promoting their particular product or service. After all, depending on what strategy will be implemented, the level of costs for industrial or consumer advertising will be determined.
In this case, the following factors can serve as criteria:
The magnitude of demand and the intensity of competition;
Type of distribution system and degree of control over the distribution network;
The degree of availability of resellers for the manufacturing company and the level of costs for their services;
Degree of availability of resellers for end users;
Costs and availability of media to reach target markets;
Attitude of consumers to sources of information;
Correlation: the price of the goods and the income of end consumers.
For example, a manufacturing firm allocates $72,000 to promote a product on the market. The ratio of costs when using these strategies will look like this (see Table 1.2).
Table 1.2 - Cost ratio when using strategies to promote a product on the market
Also, the choice of strategy is largely determined by the nature of the legislation in force in the advertising field. Thus, many countries prohibit by law such means of sales promotion as prizes, price discounts, "two for the price of one" offers, distribution of coupons, souvenirs, investment of souvenirs in packaging. In this case, of course, the "push" strategy will be preferred.
In Europe, sales advertising is only allowed during "official seasonal sales" periods. These periods vary by country, but enforcement of the advertising rule is very strict and the penalties are high. However, a number of countries require that a sale advertisement be approved by a local government agency before being placed in the media.
Legal regulations are an important factor determining the possibility of using one or another type of product promotion on the market. The influence of the state in this case is also expressed in the form of direct and indirect taxes, which are levied on foreign companies engaged in advertising activities (Appendix A).
When determining a strategy for promoting a product or service on the market, it is necessary to take into account a number of external and internal parameters, ranging from economic to legal ones.
Market transformations have sharply aggravated the state of the sales of domestic products in many sectors of the economy, including the metal-roll industry. Sales, representing the commodity foundation of exchange, realizes the possibilities of the market, fills it with functional content and is the initiator of the development of production and consumption. The totality of commodity exchanges at the same time reflects the continuous marketing essence of the market, which makes sales the generating core of the market infrastructure. At present, the viability of the enterprise, its financial stability and independence depend on successful sales activities. As a result of the adoption of forced measures (merger, liquidation, sale), the number of branch enterprises has sharply decreased (by more than 15%). This led to the loss of a significant market share (about 30%) in favor of foreign companies and sharply intensified competition. Under these conditions, the importance of improving marketing activities, which provides for the creation of an effective branched commodity distribution network of confectionery enterprises and industrial complexes, is extremely important for the independent distribution of their products.
The growth of consumer demand and the high profitability of rolled metal make it an attractive market for a wide range of Russian and foreign representatives and allow it to be classified as one of the most promising markets in our country. This justifies the desire of a large number of large and small, domestic and foreign manufacturers to take a certain place in it, to retain and expand their market niche, which further enhances competition. In addition, a significant increase in competition is facilitated by the concentration of producers and other suppliers in regional centers, which causes the largest influx of domestic and imported confectionery products in large cities and their shortage in sparsely populated areas. This objectively predetermines the difficulties of selling goods both in the zone of mass production and in providing consumers on the periphery. In order to successfully confront numerous competitors, many confectionery factories are forced to unite in various industrial complexes, often without an appropriate methodological basis for joint marketing activities. All this further emphasizes the relevance of the problem of scientific and methodological substantiation of the improvement and organizational support of the marketing activities of Russian confectionery manufacturers.
However, it should be noted that the number of works devoted to a comprehensive and targeted study of sales is limited. Particularly acute is the lack of methodological research on the issue of marketing, which contributes to the optimal formation of a system and forms for the sale of finished products by domestic confectionery factories and industrial complexes in a highly competitive environment.
The study of the economic nature of this concept showed that marketing should be understood as a systemic activity in the field of commodity relations, which forms the market infrastructure, the purpose of which is the organization of sales and the implementation in this direction of the process of bringing goods from the manufacturer (seller) to the buyer (consumer), where the main goals the most complete satisfaction of consumers and ensuring the profit of manufacturers of products (participants in commodity exchange) are set.
To achieve sales targets, a set of functions must be implemented that contribute to and ensure the desired result. The systematization of the worked out theoretical material made it possible to single out enlarged functional areas of sales. Thus, the functional areas of transportation, warehousing and storage materialize physical distribution (goods movement) as a generalized sales function and, in fact, are organizational and executive. Changing the ownership of goods and the existence of responsibility of the channel subjects for the safety and disposal of goods in the process of goods movement is associated with aspects (functions) of legal activity. The distribution network, taking over the finalization of the product and its preparation for sale, is responsible for its consumer characteristics, quality, as well as guarantees for ensuring consumer properties. The formation of distribution channels determines the structural and organizational aspect (functionality). Marketing, including market research, analysis, planning and development of marketing strategies and programs, determines the functions of the sales system in the interaction of all its elements, in the organization of which an important role is given to the target orientation to the consumer. The saturation of the competitive environment predetermines the need to take measures for advertising sales support and sales promotion. The complex of analytical functions corresponds to the principles of management in sales.
Based on the analysis of the Elements and areas of marketing activities, a general scheme of the functional organization of sales was formed (Fig. 1.6). Each of the selected functions is complex and, in turn, represents a certain set of elementary functions (or procedures).
The market infrastructure is a commodity distribution environment, i.e. a common sales network with multi-aspect communication capabilities (intermediary, informational, organizational and executive). The implementation of the manufacturer's sales activities is determined by the conditions of this environment, and the results depend on the level of organization and sales management. Therefore, the formulation and solution of functional problems are associated with an analytical study of the parameters of the market infrastructure and the identification of objective and subjective factors that affect sales performance.
The composition of objective factors is determined by the supply of goods and consumer demand, the level of competition and the market price. Subjective factors include those called directed actions of the manufacturer in terms of commodity, pricing, advertising policy and sales organization (merchandising), which form the organizational and economic mechanism for managing sales activities.
The complex of actions for the distribution of products includes a significant amount of targeted efforts both by the enterprise itself and by commercial intermediaries. The result is an increase in the price of goods due to the costs of distribution. The choice of distribution channels directly affects the speed, duration, efficiency of movement and the safety of products when delivered to the consumer, as well as the breadth of coverage of consumer markets. Because of this, the development of optimal channels is the most important condition for the effective management of the marketing system of confectionery enterprises and industrial complexes.
Modern theory and practice show that one of the most effective tools in the field of sales organization is logistics, which provides analytical and organizational management of flow processes. When performing sales functions in the process of product distribution, five main types of flows are formed: the flow of property rights, material (physical or commodity) flow, as well as documentary financial and informational. In the sphere of commodity circulation, product flows go through several stages - the movement of finished products at the exit from production; consolidation of stocks (transshipment, warehousing, storage, reformation); border movement of goods to the end point - sale. At all stages and in the process of all operations of commodity circulation, the generalizing indicator of the assessment is the reduced costs attributable to the unit of real commodity flow.
The set of operations associated with the transformation of the material flow in the distribution network constitutes a key function: the physical distribution of goods, in which warehouses and transport represent the basic elements of product distribution. The effectiveness of marketing as a system depends both on the composition of the subjects of the channel and on the structure of the movement of flows (the form of transportation, conversion points and volumetric content). The choice of distribution channels of goods directly affects the speed, duration, nature of movement and safety of products when they are delivered to the consumer, as well as the breadth of market coverage. Therefore, the development of optimal distribution channels for manufacturers is the most important condition for improving the organization and management of the marketing system. In this regard, the main task of optimizing distribution channels is to reduce costs in the organization of transport and warehouse operations (Figure 1.6).
Figure 1.6 - Scheme of the functional supply of sales
The use of the principles and tools of logistics in organizing the distribution of rolled metal allows you to rationally organize the flow of goods, reduce costs at all levels of the marketing chain and increase the efficiency of the marketing systems of industrial complexes.
The systems of product distribution of rolled metal products to the consumer in the conditions of the Russian market (extensive geography of sales and many different manufacturers and suppliers) involve multivariant schemes for the distribution of goods. The multi-channel sales network includes a retail trade network; small, medium and large wholesale trading companies, distributors, etc. All distribution channels have their advantages and disadvantages, and the share of sales through each of them is determined by the production capacity, financial and organizational capabilities of the manufacturer, etc. Currently, the Russian The market lacks an extensive network of large wholesale companies as an integrated system, which requires enterprises to independently distribute products.
The dependence of the results of the enterprise on the costs in the field of marketing involves a comprehensive assessment of the cost parameters of the distribution of goods (from the output of products from the factory to final sales). Since the basis of the relationship between the producer and the consumer is determined by the consumer value of the product and its market price, therefore, the issues of commodity circulation are closely related to the problem of pricing.
The highest marketing costs are storage and transport costs. The maximum possible approach of warehouses to consumers allows more accurate fulfillment of customer orders, faster response to changes in demand. When choosing the number, location and capacity of warehouses from among the possible options, the optimal one is considered to be the one that provides the minimum of the reduced costs, including construction (rent), further operation of the warehouse and transportation (delivery and dispatch of goods). Accuracy in warehouse space calculations largely depends on the correct forecast of demand for goods in the coverage area of a given warehouse and, accordingly, the necessary inventory. In this regard, product inventories provide a balance between real supply and demand (Figure 1.7).
Figure 1.7 - Scheme for optimizing the distribution system of goods
The pricing policy largely determines the sales results. Thus, the traditional cost approach in modern conditions has a significant defect, since the market requires the reverse algorithm. In many cases, the unit cost of producing a unit of a product, which should be the basis of the price, cannot be determined before the market value has been established. The method of active pricing is based on the fact that by means of price management the desired sales volume and the corresponding average cost value are established. The combination of both pricing methods, taking into account the impact of different price options on the profitability of the sale of goods, is the most appropriate for the conditions of the confectionery market. The formation of a favorable balance of prices and sales volumes in determining the optimal parameters of the distribution network will allow confectionery enterprises to maintain the required level of profit margin (profitability) of marketing operations.
To improve the marketing organization, a scientific approach was substantiated and a methodology for optimizing the marketing network of enterprises and industrial complexes was developed. The set of problems in the field of product marketing according to this methodology is proposed to be solved on the operational basis of a two-stage transport problem, modeling the costs of goods distribution according to the criterion of their minimization. The formation of a distribution system according to the proposed algorithm (Figure 1.7) is a multi-iterative process, the starting parameter of which is the need for products in regional markets, and the calculated parameters are transportation costs in accordance with the proposed location of warehouses, their capacity and taking into account the established consumption potentials. The proposed optimization principle ensures the minimum costs of product distribution, which affect the final price of products, sales volumes, which affects the efficiency of the distribution network.
CHAPTER 2. Analysis of the regional sales management system in SibMetallTrans LLC
2.1 Analysis of sales in SibMetallTrans LLC
Limited Liability Company "SibMetallTrans" has been operating on the rolled metal market since 1998.
It is one of the five largest metal depots in the city of Novosibirsk.
The average number of employees of this enterprise is 17 people. The hierarchical ladder is built according to Figure 2.1.
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Figure 2.1 - Organizational structure of SibMetallTrans LLC
The main activity is retail and small wholesale trade in rolled metal, in which SibMetallTrans acts as an intermediary between a manufacturing plant or a large wholesale company and a retail buyer.
The base has about 1,000 tons of black rolled metal from simple, carbon, tool and corrosion-resistant steels of more than 500 standard sizes.
Receipts of metal occur 2 - 3 times a week, lots from 10 to 65 tons.
The price for rolled metal products is set within the current average market value per ton.
The company's clients are: small enterprises - manufacturers, individuals, as well as factories and thermal power plants, purchase rolled metal for repair and unscheduled needs.
Despite the fact that in 1995-98. there was a decline in the production of ferrous metallurgy to 57%, today this industry in Russia has “revived” and brings no small income to the state.
There are three large groups of sellers on the rolled metal market:
1) Metallurgical plants - directly involved in the production of metal products. The minimum lot is 1 wagon (65 tons), as a rule, there are no more than 2 standard sizes in a wagon, i.e. not less than 30 tons. one item of metal, less often up to 10 items - 5 tons each. (Plant named after Serov). They work with large metal depots and large factories.
2) Large metal depots trading in bulk, traders of metallurgical plants - are engaged in the supply of metal to the end consumer in relatively large quantities, form prefabricated wagons from the availability of an assortment of different manufacturers. They also work with smaller intermediaries.
3) Small local metal depots - intermediaries selling at retail and small wholesale. As a rule, the metal is released in an amount of 1 bar. Prices in such firms are as high as possible compared to the two above categories of sellers.
The company under study belongs to this category of sellers. The clients are local and regional manufacturing firms with a consumption rate of rolled metal per month of no more than 20 tons. Also, large plants, such as Kemerovo Azot, Topkinsky Cement Plant, Novosibirsk Strelochny, Novosibirsk Stankosib Plant, Novosibirsk Aircraft Repair Plant, Tomsk Instrument, CJSC Polyus, using a relatively small amount , in comparison with their constant planned needs, for repair needs and unscheduled repairs. If the metal is needed urgently and in small quantities, it is profitable to take it at the local metal depot from the availability, even if it is much more expensive than from the factory. As in many other markets, there is an element of seasonality in the rolled metal market, characterized by ups and downs in sales volumes. Let's trace these fluctuations on the example of our company during the previous 12 months, since the level of fluctuations, with varying degrees of error, refers to the entire market as a whole.
Table 2.1 shows the firm's monthly sales levels and their dynamics, where each month's sales level is compared to the previous month's sales level.
Table 2.1 - Monthly levels of sales of the company
The dynamics index is calculated using the following formula:
Dynamic index (I dynamic) is presented in formula (2.1).
I din. \u003d E 1 / E 0 * 100% (2.1)
Where E 1 - the level of sales for the billing month, tons,
E 0 - the level of sales for the previous month, tn.
Figure 2.2 clearly shows the seasonal fluctuation in the level of sales.
Figure 2.2 Seasonal fluctuation of the level of sales
We see that the rise in sales is observed in November and May, and the decline occurs in September and January.
We will conduct a comparative characteristic between metal depots - competitors in the following parameters:
After analyzing the price lists of all the above listed companies for the main steel grades (table 2.2), we can conclude that the prices of SibMetallTrans LLC fluctuate around the average. This indicates a good competitiveness of the company in this indicator.
Table 2.2 - Analysis of competitors' prices
| metal depot | Types of steels, price (rub.) per 1 ton of VAT | |||
| Simple | Structural | alloyed | Stainless | |
| LLC PFO "Zapsibenergokomplekt" | 20 000,0 | 25 500,0 | 23 000,0 | 236 000,0 |
| LLC "Vira +" | 18 600,0 | 27 000,0 | 22 500,0 | 235 000,0 |
| LLC "Metalkontinent" | 18 500,0 | 26 400,0 | 22 600,0 | 234 000,0 |
| LLC "Sibirskoe 2" | 18 200,0 | 24 000,0 | 22 500,0 | 232 000,0 |
| Metalsibcenter LLC | 19 300,0 | 26 000,0 | 22 500,0 | 230 000,0 |
| SibPromStal LLC | 18 000,0 | 26 800,0 | 23 500,0 | 236 000,0 |
| LLC "Ferrum" | 19 700,0 | 28 300,0 | 23 000,0 | 235 000,0 |
| SibMetallTrans LLC | 17 800,0 | 25 700,0 | 22 800,0 | 232 000,0 |
| average price | 18 500,0 | 25 600,0 | 22 800,0 | 233 750,0 |
2) Offered assortment (warehouse nomenclature)
The nomenclature of the warehouse of SibMetallTrans LLC is highly specialized, one can argue whether this is good or bad. On the one hand, it is good, since it is quite easy to maintain a good range of standard sizes, on the other hand, it is bad, since not the full needs of the client are satisfied.
Table 2.3 - Evaluation of the range of stock availability
3) Metal condition
In terms of the state of rolled metal, the leading place is occupied by the SibPromStal company, because. metal is purchased only from manufacturers. The remaining metal depots buy metal, both at metallurgical plants, and are engaged in buying up stale rolled products in the secondary market. And this means: the presence of rust deposits, corrosion and, possibly, shells on the metal. In addition, the rebound in such cases does not always correspond to the actual steel grade, and a confirmatory analysis by a chemical laboratory is required.
Basically, such metal is traded by the companies: Metallkontinent and Ferrum, in the rest of the metal depots, the metal of this state is no more than 20% of the total tonnage.
SibMetallTrans LLC has recently ceased to give preference to “stale” metal, and its availability in the warehouse has decreased to 5% of the total volume, although the profitability of selling such metal is much higher, because. the purchase price is 40% lower, and it is sold at the same price. The condition of the metal greatly affects the image of the company in the end.
4) Availability of additional services (delivery under the order and its speed, the ability to work on credit)
Here, all metal depots are in the same conditions, because everyone works with all well-known manufacturers, they order several wagons of rolled metal per month, so it is possible to work on order at the same time, subject to the availability of metal in the warehouse of the plant, if the metal of the required specification is not in stock, then the plant will roll it to order and this can take up to 2 months.
If the client agrees to stale metal, then it can be repurchased from suppliers in the secondary market, but SibMetallTrans LLC does not adhere to such a policy, which makes it less competitive.
5) Frequency of new metal arrival
The frequency with which the flow of metal occurs is approximately the same for everyone - it is two to three times a month for a car. In addition to this, additional receipts occur two to three times a week by cars from the secondary market.
6) Efficiency and coherence of the work of the office and warehouse
Not all metal depots are located on the territory of warehouses, as a rule, the office is located in the central part of the city, and the warehouse on the outskirts of the city and the managers involved in the sale of metal have never even seen it. That is why it is necessary that the connection between the office and the warehouse be operational. At all metal depots, the methods by which this is ensured are different, but we are comparing already established firms, the scheme of work on which has long been debugged. Our company in this aspect is also quite competitive.
7) The presence of untapped potential.
It is very important in any business that the potential of the enterprise is used to its full potential. Let's take a look at each of the companies listed above.
LLC PFC "Zapsibeneggokomplekt"
There are 6 sales managers in the company, each of them is assigned a region or a specific enterprise. The manager's task is to constantly inform his clients about new arrivals and find out current needs. There are practically no new appeals to the firm, except for those cases where there is a recommendation. The productivity of the manager's work could be more productive if the warehouse was replenished more often, but the limited working capital does not allow this. Perhaps, if the firm had been advertised, then the influx of new customers would have been greater, and the sales volumes of managers would have increased, but the policy of management is different.
Vira+ LLC
There are 2 managers in the company who are engaged in sales, they are also engaged in the purchase of metal, so their workload is full and an increase in the volume of customers can lead to malfunctions in their work. In addition, closer communication with clients is not possible due to the same full load of managers.
LLC "Metalkontinent"
There are 3 supply managers in the company, whose duties include the full provision of the client's request, both from the availability and repurchase of rolled metal at other bases, as well as barter operations. As a result, the workload is full and the slightest increase in clientele can lead to malfunctions. An increase in staff is needed.
LLC "Sibirskoe 2"
The metal depot and the office are located on the territory of the plant - which is the largest client of this metal depot. Trade is carried out by 3 managers, the workload is not full, because suppliers are engaged in the supply of metal.
Metalsibcenter LLC
The company has 4 managers who do not call customers, but work only on receiving calls. The workload is almost full. The office is small, so staffing is out of the question.
SibPromStal LLC
So far, 4 managers, but it is planned to expand the staff, are actively advertised in the press, are currently purposefully engaged in the purchase of metal, a clear division of duties between employees, contributes to productive work, and a client base is being formed.
LLC "Ferrum"
There are 6 sales managers in the company. The manager's task is to constantly inform his clients about new arrivals and find out current needs. There are a lot of new applications to the company, the productivity of the manager is constantly growing, the base receipts are formed based on the requests of managers.
SibMetallTrans LLC
There are 4 sales managers in the company, each of them is assigned 2 regions and specific enterprises of Novosibirsk. The manager's task is to constantly inform his clients about new arrivals and find out current needs. New referrals to the firm are practically driven by advertisements and referrals, and there are quite a few of them. 1-2 new clients appear weekly. Managers are doing their job quite well and could serve 15-12% more clients if their influx increased, in addition, there is the possibility of expanding the staff of managers and this is included in the future plans of the management, because. the area of the office allows you to do this. Among other things, the company's management decided to increase working capital and, as a result, the metal on the base.
In connection with all of the above, the question arose of additional sales promotion, and how effective this promotion will be, we will have to find out below.
2.2 Study of control systems of SibMetallTrans LLC
The study of management systems of SibMetallTrans LLC is carried out in order to determine the reasons for the introduction of a strategic management system.
These reasons are:
The need to improve the manageability of the organization;
Strengthening the function of corporate governance on the part of the founders;
Increase in the market value of the organization;
The need to control the implementation of the strategic goals of the organization;
Entering new regional markets to increase sales.
The architecture of strategic planning at SibMetallTrans LLC is as follows (Figure 2.5)
Figure 2.5 - Architecture of strategic planning in SibMetallTrans LLC
We will draw up the structure of a long-term strategic plan:
1) analysis of the rolled metal market;
2) SWOT analysis;
3) scenario forecast for the development of the rolled metal market;
4) financial plan;
5) access to regional markets (West Siberian region);
6) means of achieving strategic goals;
Marketing policy (brand);
Customer Relations Policy;
Regional network;
Organizational structure;
Personnel policy, motivation;
Information Technology.
Let's draw up the structure of the short-term strategic plan (Figure 2.6).
Figure 2.6 - Structure of the strategic plan
2.3 Features of regional sales management
Plan for creating a regional sales network of SibMetallTrans LLC
So, for one reason or another, the company made a strategic decision to develop regional sales. Below are the main criteria by which it is necessary to analyze the situation for an adequate management decision on the choice of the type of structure, distribution channels and the plan for building a regional network for product promotion.
Strategic plans for the development of the company.
1) If, with the existing sales volume, the company has achieved 80% distribution in the Novosibirsk market (and only 2 times growth in 5 years is planned in terms of capacity, it clearly does not make sense to build plans to create branches in 20 regions. The opposite is also true: one should not rely only on distributors for regional sales - with plans to grow 5 times and subject to the existing network of 50 distributors in 50 regions of Russia.
2) Regulatory indicators that the company wants to achieve in the regions. They depend on the competitive situation, the existing market share and other features of the actual situation of the company at the current moment. In most cases, it is problematic to achieve 80% distribution of products in each of the major cities of the country, relying only on the work of sales representatives of distribution companies. If you set such a goal, then the tool for achieving it should correspond to it in terms of seriousness, thoughtfulness and level.
3) Timing, resources and budgets, based on the adopted plan for the growth of sales and profits. The main problem is the feasibility of the plans and their adequacy to the real opportunities not only of the market, but, first of all, of the company itself.
4) Marketing strategy for product promotion. Selected schemes, technologies and methods of product promotion, reward systems for trade channels, advertising strategy.
5) Investment attractiveness of the regions. It is taken from open sources (for example, from the website of the State Statistics Committee of Russia).
6) The number of inhabitants and the average per capita income of the population of various regions.
7) Features of the traditions of consumption of these products in different regions
8) A combination of such factors as the remoteness of the regions, and the terms and conditions of storage of products.
9) The demand group to which the product belongs, how important is the "proximity" of the product to the end consumer.
10) Local political situation and social situation in the regions, features of local legislation, etc.
13) Availability of local manufacturers of analogues or substitutes, their strengths and weaknesses.
14) Personnel situation in the regions with personnel of all levels.
Based on the analysis of all available data on the above points, a plan for building a regional network in one form or another should be created. Let us consider the types of regional networks and the systems for managing these networks with some possible development options.
What each regional network has in common is a single (or rarely distributed) regional sales control center. Such a center is the office - GO. In the case of a distributed center (analogous to a divisional structure), in the conditions of Russia, options are possible from 2 (Moscow and St. Petersburg or, for example, Yekaterinburg) to a maximum of 5-6 regional divisional centers. Distributed control centers are possible only with significant sales volumes and appear only in very large manufacturing companies that have (purposefully acquire) large production facilities in regions that are quite remote from each other. In such cases, the management company has only the functions of strategic management, development, control and audit.
In the vast majority of manufacturing companies, one or another type of regional network is managed from one center. We will consider the main issues of development and management that are typical for most types of regional networks, using the example of a branch network.
Organization of interaction between the GO of the manufacturing company and branches.
To ensure effective interaction between the head office and branches in civil defense, it is necessary to create a structure of the regional department that is adequate to the development goals. The structure and organization of interaction should be sufficient to provide the whole complex of the so-called "remote control", which is a special case of control.
Management includes in a simplified form planning, organization and control.
In a more expanded form:
Motivation;
Organization;
Coordination of efforts and interaction;
Control;
Correction - making the required changes to plans and actions;
Pushing (work to achieve the desired result).
The interaction of GO - branches should be carried out on the basis of the following systems (in another taxonomy, this can be broken down into business processes):
1. The remote control system itself (standards, work standards for all business processes, orders, instructions, planned, organizational and control actions, etc.);
2. Document management system of civil defense - branch (on the basis of uniform approved forms of plans-reports and other documents in all areas of work of branches - commercial, financial, logistics, administrative and others);
3. Budgeting system (based on sales and expenditure budgets);
4. System for ensuring the supply of civil defense - branch;
5. Sales system (managers work technology, key indicators, work standards, pricing system, etc.);
6. Logistics system (warehouse, accounting, deliveries, delivery, issues of marriage, claims, sorting, etc.);
7. Accounting system for DS (accounts receivable, accounting, cash desk, bank, accounting for expenses, powers of attorney, etc.);
8. Information system (computer accounting, communication (telephone and electronic communication with civil defense), network, office equipment, ensuring the sending and receiving of planning and control documentation);
9. System of legal support and assistance in ensuring business security (interaction with clients, with the external environment);
10. The system of work with personnel (selection and training of personnel).
Important note. The structure of GO will largely depend on the number of branches and the level of other divisions of the company. If the company has a weak audit and inventory department (or it is represented by only one person who simply cannot physically go around all the branches with inspections), then it is necessary to introduce such a position in the regional department (similarly for other functions and areas of work). And if there are employees, and of a sufficiently high level, only their use is possible (this applies mainly to the initial stage of development, when sales volumes are not yet large).
The obligatory presence of a deputy follows from the systematics of remote control and the need for fairly frequent business trips. Otherwise, most of the problems are not solved until the director returns, or he is significantly and inefficiently distracted from work in the branches. In addition, the presence of a "second person" of the company allows you to divide all tasks into blocks of responsibility between the director and his deputy for more efficient management.
Branch managers can have 3 and 7-8 branches subordinate (but not more, otherwise it usually threatens to lose control) - depending on the level of tasks, sales volumes, the number of positions in the existing assortment, in promoted products and the market.
To ensure efficient operation at all stages of the development of the branch from the moment of its opening and sales growth, it is necessary to ensure a systematic approach to solving all problems from the very beginning of the development of the regional network of branches. This implies the following:
1. All business processes must be defined and transparent for all participants (up to technological chains for "routine" work).
2. For each position, a job description must be developed with a system for communicating it to the staff and monitoring compliance.
3. Starting from a certain level of sales, a system of continuous training of personnel in branches should be created (at the initial stage, perhaps only at the level of branch directors (key employees) and only by the regional director and / or full-time company trainers).
4. It is necessary to think over a unified (easily scalable) system for creating branches (it has standards for creating a branch, which prescribes requirements for warehouses, initial employees, etc., and a package of documents for creating a branch, which prescribes all actions and documents for interaction with the authorities , landlords, the external environment, the market, etc. - such a package is created under specific conditions), and a unified sales system in branches (including all aspects of specific sales technologies used for customers of all levels, including \LR).
In addition, it is necessary to provide a system of checks of material and computer accounting in the branches and check the compliance of the work of the branch with the work standards established in the company.
Mandatory planned (with a given frequency) inventory and inspections of the branch. To do this, it is necessary to create an inventory regulation and other title documents: their list and content are quite standard, but they require mandatory “tuning” to the existing business features of a particular manufacturing company.
Document flow GO - branches
With remote control, the issue of document flow of civil defense - branches is extremely important.
It should be based on the following documents:
1. Monthly plan-report of the branch in civil defense (sales, work with clients, receivables, relations with the external environment, problems, plans, etc.).
2. Weekly reports from managers to the director (head of the sales department), director and key employees of all areas - in the civil defense.
3. Weekly (or daily) receipt of accounting bases from branches in GO.
4. Financial and accounting reports (weekly, monthly and as required by law).
5. Monthly budget (expenditure, according to it - weekly - a report on the funds spent, and the sales budget - monthly / quarterly or with another established schedule).
6. Report on the movement of material resources (after each delivery of goods).
7. Report on marriage, surplus of goods, shortages, returns and other - weekly.
8. Monthly report of the marketing and purchasing manager (or other employee with similar functionality) on the analysis of the market, prices and competitors, justification of orders, and the like.
9. Monthly staffing report.
10. Report on discounts and sales promotion - monthly or weekly.
11. Monthly report on interaction with the external environment.
It is necessary to strike a balance between the sufficiency and the need for document flow. Avoid duplication of information in different reports, but also prevent the concealment or loss of important data necessary for analysis and management decision-making in civil defense.
To maintain a workflow, each employee should have an instruction in the form of a table - which report, when, to whose address he sends, with what content he sends information from a branch or receives from a civil defense (to eliminate failures in sending and receiving information, the usefulness of the data provided) .
The structure of the selected regional division of the company.
Now consider the organizational structure of a full-fledged dedicated division of the company, i.e. a division that has its own warehouse of products and also delivers goods to customers.
In general, any branch works in three directions:
Branch - Clients;
Branch - External environment;
Branch - GO (acting as a management company and supplier).
To ensure these interactions in general, the following are required:
General management (at the beginning of sales - only the director);
Block of interaction with clients (sales department, goods movement support, PC operators (order operators), office manager);
Financial block (usually - accounting and cash desk, in large branches - a financier-economist);
Logistics block (warehouse and transport, purchases in civil defense);
Information block (programmer - base, interaction with civil defense, computer accounting, with developed sales - marketing and procurement manager in civil defense);
Personnel block (work with personnel, record keeping, usually distributed by personnel from other blocks, in large branches - separate);
Administrative and economic block - interaction with the external environment (authorities, regulatory bodies, security, etc.), internal administrative and economic issues.
Naturally, at various stages, additional departments and employees may appear, or some of the above may be absent (for example, a sales deputy (head of sales department) or a deputy for ACH). It should be noted that this is a fairly general scheme.
For the entire network, a single staffing table is required, where the presence or absence of any employees should be tied to the branch's sales volume or other key indicators for a given manufacturer (or region).
Thus, in general terms, we considered a variant of a regional network - a branch network, as the most complex type of a regional network for ensuring goods movement. It is the most costly, but it also allows, with proper construction and adequate management with a mixed sales system (including direct sales from a branch through the main distribution channels), to achieve the maximum level of service for customers and maximum sales of products in the region.
In conclusion, let us briefly formulate the sequence of actions that must be followed by a manufacturing company that wants to develop a regional network:
Clearly set goals and desired indicators with the timing of their achievement;
Determine the strengths and weaknesses of the company and competitors;
Determine the most promising regional markets and the sequence of their development;
Choose the optimal distribution channel (or a combination of them) and the system of operation of the regional network;
Determine the marketing strategy for promoting products in the regions;
Draw up a detailed action plan with deadlines, performers, resources, systems of motivation, control and correction;
Get started and achieve what you want.
The development of regions is not an easy task even for strong, financially powerful manufacturing companies with a developed management system. But this is a rewarding task, giving a serious, long-term, stable trend towards growth in sales volumes and stability in the market. Therefore, it is impossible not to recognize its importance for any company striving for development and growth.
3.1 Modernization of the regional sales management system
1. System approach
The importance of a systematic approach is obvious. However, a systematic approach to organizing and managing sales is especially important. In particular, when these processes are managed by business owners. The price of the mistake of these people increases many times over.
Sales is only part of such a system as a company. This is the final component of the work of all services and the entire team of the company. S. Beer's law says: improving the performance of one of the elements of the system does not lead to an improvement in the performance of the system as a whole. Improving one element of a marketing service may not improve the overall service. And most likely it won't. For example, we have developed and implemented such an important unit of organization and management of sales as sales planning for managers. However, the information in the client database is not enough for competent work on developing clients and planning their needs. As a result, the planned sales figures turned out to be taken out of thin air. The value of the work done is close to zero.
Thus, when carrying out certain measures to improve the work of the sales service, it is necessary to be able to give a clear answer to the questions:
- “How will changes in the organization of the sales department affect other departments of the company?”
- “Is it advisable to improve the work of the sales department without improving the work of other departments of the company?”
Answers to these and similar questions, which are not always seen from the position of the current company leaders, can be obtained by conducting expert diagnostics of the sales system in the company, as the first systematic step towards business development.
In general, a systematic approach to the organization and management of sales in wholesale and retail companies is seen as consisting of the following blocks:
Diagnostics of the sales system and marketing in the company.
Organization and management of the commercial department.
Methodological support of sales.
Marketing support and sales development.
2. Diagnostics
Before organizing or rebuilding anything, it is necessary to answer the question of what has been built, to assess the level reached, to understand what has not been completed, what has been completely missed, what has been done incorrectly, which hinders the further development of the company. In other words, the optimization or construction of a sales organization and management system should begin with its comprehensive diagnostics. From the formation of an objective assessment of the state of the company in terms of its performance of the most important function - the organization and management of sales. This is an audit or diagnostics of the sales system.
Sales audit provides the owner-general director with a systematic vision of the business situation in the company, as well as practical recommendations - what and how to do in order to achieve the goals. The features of work and interaction with the company are as follows. The auditor, and at this stage he is already acting as a consultant, acts with the full approval of the owners-managers of the company and according to the plan approved by them. Actions are in the nature of the development and implementation of specific organizational and management documents or work algorithms that provide a solution to previously identified problems. At the same time, the consultant uses his existing successful developments or reworks them, taking into account a new vision of the problem or unique business conditions.
Relations at this stage are not carried out directly with the company's employees, but, as a rule, are of an indirect nature - through the heads of sales, marketing, sales director, executive or general director.
Let's sum up the intermediate result. A systematic approach to successful sales at this stage is implemented by conducting a comprehensive, independent diagnosis of the existing sales system and marketing, developing an appropriate analytical report and proposals - a business development program. It should be taken for granted here that the diagnosis, the analytical report and the recommended development program are the forms of presentation of the results of the consultation processes. And their essence is, firstly, the identified, grouped and analyzed problems of the company's development. Secondly, - analysis of the state of all business processes of sales and related to sales and marketing elements of the company's functioning. Thirdly, a system of recommendations logically conditioned by the two previous stages for optimizing the existing sales system and its further development.
The result and practical value of the first system block. The founders receive an unbiased expert assessment of the state of the organization and sales management in the company. Including new information. Problems of the company, their relationship and access to the root problem. Proposals for the management setup of the company, a business development program and, most likely, an offer of assistance in implementing the developed recommendations.
3. Organization and management of the commercial department
A specific embodiment of the process of organizing and managing sales is the formation of a sales department or several sales departments. A systematic approach to the formation or development of a sales division is seen in the observance and appropriate information content of the following structural blocks.
Target. The goals of the sales department should logically follow from the goals and objectives of the company as a whole. Since the business of SibMetallTrans LLC is aimed at promoting goods to the regions, it is advisable to build the sales department mainly as a regional sales department. At the same time, personnel will be selected with experience and connections in the regions. The concretization of this thesis will be carried out in all other structural blocks of the system.
Organizational structures - the formation or optimization of the organizational and managerial structure of the department.
Many companies do not have a well-designed organizational and managerial structure, neither existing nor prospective. If the old employees of the company themselves come to an understanding of who actually reports to whom and who needs to be contacted for what issue, then for new employees this becomes the first problem. Such a position is beneficial for the type of middle managers encountered, who are trying to lock on themselves the main intra-company decisions, regardless of their officially held position, the corresponding functions and powers. This leads to the emergence of "grey cardinals" in the company, occupying an incomprehensible position, but having a certain "weight" in the company, often determined by the degree of influence on the first person of the company.
The consistency of this section is manifested, first of all, in taking into account the target orientation of the sales department. Continuing with the regional sales example, the structure of the sales department is seen as a group of regional "field" sales managers, regional representatives or sales agents in the field. In the structure of the commercial department - logistics formation, and in the structure of the company - branches, consignment warehouses, relations with exclusive dealers. It is clear that these divisions should not be created all at once, but as far as the company's capabilities and according to the logic of business development.
Functional responsibilities.
Development of functional responsibilities of formed or emerging units. The company chooses the most convenient way of regulation. The essence is important. And the essence of this approach is the competent and effective formation of the sales department:
The purpose and objectives of the sales department are clear and clearly formulated;
It is clear which units are solving or are called upon to solve these goals;
There are heads of these subdivisions who are well aware not only of their duties and the duties of their subdivisions, but also of the functions, duties and rights of related departments and services.
Personnel, formation of corporate culture.
Now is the time to start recruiting sales managers or rethink and redirect the work of existing salespeople in the company. In parallel with the beginning of the search for sellers, and even better - one step ahead - start developing their job descriptions.
Job descriptions are not a dogma and not restrictions for the manifestation of the creative abilities of employees. However, each employee must be very clearly aware of what he is paid money for, and the manager must know what can and should be asked of a particular employee. Work without prescribed job descriptions is typical for young companies and indicates a low level of professionalism.
Let's pay attention to the following sections of job descriptions, regardless of the specifics of the company or the direction of its activities, which will help “breathe life” into this development, make it useful for employees.
Purpose and tasks of the post. It is important to clearly formulate the goal and determine the tasks that need to be solved in order to achieve it.
Subordination, interaction. An interesting and controversial issue is the thesis of direct subordination. I propose the following interpretation of this definition. Direct subordination is a form of personnel management in which the issues of hiring an employee, setting a task, monitoring performance, rewarding, punishing and dismissing are decided by the immediate superior; it is possible to coordinate or approve the decision of the immediate superior by a higher official.
The principle applied by a number of companies, when a leader of any rank can give orders to employees who are not directly subordinate to him, is fraught with trouble. Of course, there are exceptions that justify this approach. However, as a rule, it is more expedient to set the task through the head of the structural unit.
Criteria for evaluating work. A clear and understandable definition of the indicators by which the work of an employee is evaluated is a necessary condition for his successful work.
Job / Functional Responsibilities.
This section should clearly define what functions the employee must perform in order to achieve the goal. In fact, this is a reasonable specification of tasks with an emphasis on the technological aspects of sales - in relation to sales managers and on organizational and managerial aspects - in relation to the head of the sales department. It is advisable to supplement this “technological” aspect of the development of job responsibilities with a list of work results that are expected from this employee. Such a combination of performance and technology orientation in the development of functions, for example, sales managers, will help to avoid the situation often encountered in practice, when an employee says, indicating in his job descriptions, that this type of work is not provided for me.
Ignoring or misunderstanding the provisions in question leads to loss of money for the company in the form of direct losses or lost profits. And this is manifested in the disorganization of the staff, the performance by managers of the tasks that their subordinates must perform, in the inability or fear to delegate authority, provide freedom of action at an intermediate stage and ask for results.
The rights. In order to competently perform tasks, certain material things, working conditions, and powers are required. And they must also be defined and prescribed. As business processes become more complex, the requirements for the working conditions of sales department employees increase. For example, the need to constantly connect a sales manager's computer to the Internet in many companies is becoming a basic requirement for its effective work.
Responsibility. Having set a goal, defined tasks, formulated functions and granted rights, it is necessary to determine the scope of the employee's personal responsibility for a specific section of the business process.
Speaking about personnel in a systematic approach to sales, it should also be noted that the selection of employees is made taking into account the characteristics of the company and the specifics of the promoted product or service. That is, not only we choose, but now more and more people choose us, especially competent personnel. Therefore, when searching for a candidate for a particular company, it is necessary to “weigh” not only the level of wages that the company can currently pay to the employee, the professional qualifications and psychological characteristics of the candidate, but also the complexity of the product, the peculiarity of the team (the level of goodwill, etc.) .
As for the formation of a corporate culture, this is a long and purposeful process, which is an element of a systematic approach to sales. The author contributes to this process by explaining and implementing in practice the concept of the "Management Pyramid", as the principle of a competent approach to the organization of labor in the company, and also conducts a lecture-training "Elements of professionalism in the work of performers of any level". Schematically, these issues are covered in Appendix A.
The result and practical value of the second system block. The company acquires organizational and managerial registration. Employees literally see the structure of the company, know and understand their tasks, the criteria for evaluating their work, the system of subordination and interaction in the company. Competent work on the selection of personnel begins.
Methodological support of sales
The name of this system unit may sound somewhat unusual. But its essence is precisely in the methodological support of the sales process. Another wording that helps to reveal this essence can be this: “Setting up regular management in the sales department or commercial department of the company.” The significance of these issues increases when considering sales processes from a systemic point of view. The system will be good when it can work "by itself" in a certain sense. And if, when understanding the word “itself”, one does not go beyond the boundaries of common sense, then here are the elements of methodological support that will make it possible to give further consistency to the processes of organizing and managing sales in the company (Appendix B).
Methodical “armament” of managers. Documents and work algorithms for this block should be developed by the management of the company and the sales department for their sales managers. Specifically, this is the work of the head of the sales department, commercial director or sales director, and in part - the marketing director. The presence in the company of such developments and their use in practice automatically characterizes the professional level of the heads of sales departments.
Specific basic documents that characterize both this block and other blocks of the methodological support system for sales are given in Appendix B. Examples and details of the methodological support system can be given in a separate article.
System of demand from managers - reporting system. After employees know what is required of them, they understand what and how to do it is possible and necessary to organize a competent demand. To do this, it is necessary to clearly define the task. This is expressed, in particular, in the scrupulous development of forms of reporting documents. The best way is a table. It will also provide a summary of the results for the entire population of performers.
Reporting on the results of work. In other words - the final reporting of sales managers.
In terms of the methodical ordering of regional sales, it is advisable to pay attention to the development of the following regulatory documents that give clarity and simplicity to this difficult type of sales with complex process control and increased financial risk.
The concept of regional sales.
Terms of payment for regional managers.
Travel regulations.
Financial travel plan for the year, quarter, month.
Business trip plan.
Travel report.
Methodological support for the work of the sales department.
The level and scale of the tasks of this block, continuing the regulation of business processes in the sales department, go beyond the scope of one department. This is a joint work of directors of several divisions of the company: commercial, financial, marketing, logistics.
The main blocks of this section:
The economic mechanism of sales.
company sales budget.
Cost budget.
Final report of the sales department.
Document flow.
The result and practical value of the third system block. The work of the main division of the company - the sales department is being created anew or put on a professional basis: job responsibilities of employees, planning, reporting, production discipline, planning, financial, client databases, document flow, sales technology. Information about the state of sales in the company "settles" in specially developed documents according to well-thought-out work algorithms. Well-established analysis of reporting and planning data allows timely management decisions. The market value of the company increases. The risk of losing accumulated information when managers or the head of the sales department leaves will decrease. The basis for the standardization of business processes and sales management systems in branches or subsidiaries is being formed. Internal conditions are created for the development of sales. Inevitably, there is an increase in sales.
Marketing support and sales development
Having worked through the above blocks of the system, you can set and solve a group of tasks that answer the question “What else needs to be done to better meet the needs of your customers, work more efficiently and, accordingly, increase sales?”. This is the next block of the sales organization and management system - marketing support and sales development.
Ideally, many marketing aspects of a business organization should be carefully considered before the main business processes of the company are launched. For example, the strategic goals of creating a company (mission, vision, ideology), target market, assortment and pricing policy, product distribution channels, its unique competitive advantages, studying competitors, ways to promote products, and many other groups of questions should be posed and resolved before , say, start compiling a job description for a sales manager. In addition, almost all marketing questions have a due date, but no completion date; should be developed and updated continuously.
It is also necessary to note another danger when considering marketing issues. Marketing is the most versatile concept of modern business. It is hardly possible to name at least one area of activity of a modern business company that would not be an element of marketing. Therefore, within the framework of the objectives of this article, we will try to reduce marketing issues to practically tangible concepts, the solution of which ensures further sales growth and business development of a particular company.
Schematically, the system of marketing support and sales development may look as follows.
1. Regulations on the marketing department.
2. Strategic planning.
Company's mission.
Vision.
Ideology.
Marketing plan for the development of the company.
3. Long-term planning.
Sales policy - distribution channels, assortment policy, pricing policy, sales promotion methods, the concept of regional sales.
Marketing forecasting sales.
4. Positioning. Continuous monitoring of the company's and products' market position.
6. Marketing research.
Target consumer market.
New target market segments.
New regional markets.
Competitors, manufacturers, suppliers.
It is important that each area of marketing research acquires practical significance in the form of specific recommendations for optimizing and developing sales.
The result and practical value of the fourth system block. Further growth of sales efficiency is achieved by using the results of marketing activities. Sales divisions are based on the developed conceptual framework for the development of the company. Achieve a clear understanding of your target market. This enables the sales department to quickly and independently resolve many tactical issues. Sales departments are beginning to actively use advertising campaigns and other methods of promoting products.
In order to increase the turnover and get as close as possible to the end consumer, SibMetallTrans LLC is constantly striving to expand the scope of its activities by opening metal depots in the regions of Russia and concluding dealer agreements with regional representatives on a long-term basis.
Currently, there are three official representative offices of the company: in the years. Biysk and Novosibirsk, capable of simultaneously placing more than 30,000 tons of rolled products of various grades on their premises.
Over the past year, the amount of rolled steel supplied through regional warehouses has more than doubled, and the geography of sales has expanded significantly.
The activity of SibMetallTrans LLC is aimed at providing coal industry enterprises, as well as the largest machine-building enterprises and construction organizations with rolled metal products. We develop the services provided in the sale of metal, so our customers can count on quality service. In order to satisfy the needs of consumers as much as possible, we purposefully expand the range of metal products offered.
To organize the process of procurement, storage and sale of rolled metal products, SibMetallTrans LLC uses a centralized inventory management system at regional warehouses, based on the operation of modern telecommunication systems and high-speed data transmission channels
The main goal of the marketing policy of SibMetallTrans LLC is to provide the most favorable working conditions for consumers of metal products. We plan to develop warehouse sites to the level of modern metal service centers and open similar complexes in those regions where there is an active demand for rolled metal products and metal products. The company quickly responds to customer requests and is always open to long-term and mutually beneficial cooperation.
LLC "SibMetallTrans" reorganized the management system. The reason for the transformation is the growth of the company and the expansion of the business.
Management of a dynamically developing large organization requires the creation of a special structure that implements strategic management.
Personnel transformations are one of the stages of the program of reorganization of the management system of SibMetallTrans LLC, which began three years ago.
The main directions of the reorganization of the enterprise management system.
The need to solve a large set of tasks in the field of sales requires the creation of a flexible commercial service with a certain degree of independence. This can be achieved by organizing the service on a regional and product basis, transferring to the heads of the service certain powers and responsibility for the decisions made in the field of sales and purchases.
A weak focus on the end consumer of products dictates the need to create a marketing department at the enterprise and transfer to it the functions of improving the assortment and searching for new technologies.
An excess of personnel and at the same time a lack of qualified personnel dictate the need to create a full-fledged HR service under the supervision of the HR Director, especially in terms of motivation and certification of personnel, as well as the search and training of highly qualified personnel.
In connection with the tightening of competition, a rational approach is needed to analyze the activities of the enterprise and plan their own activities for the future, which can be organizationally ensured by the introduction of a financial department with subordination to their financial director.
Today, we can talk about the possibility of transition to a new promising management structure in two stages:
An early change in the organizational structure and the mandatory assignment to specific performers of the functions of the relevant services and departments.
Deepening and improving the efficiency of the performance of functions through the use of incentive methods and other results of the implementation of projects to improve management and staff training.
To give flexibility to the organizational structure and guided by considerations of economic feasibility, it is possible to (partially) outsource a number of tasks that require high costs and highly qualified personnel:
Large-scale marketing research.
Tax planning activities.
Minimization of utility bills (including the transition to mini-energy).
Development of business plans for investment projects.
The solution of the listed tasks for the enterprise can be carried out on a subcontract basis.
Ranges of responsibility in the new organizational structure.
In the new management structure, responsibility for decisions made should be formed in the form of responsibility ranges for each position. This assumes that all officials know what work should be done within the assigned range of responsibility. Within the range of responsibility, the official acts independently and is personally responsible for a positive result.
After the ranges of responsibility are formed, "horizontal" interactions are worked out in the new organizational structure in order to increase the efficiency of management.
"Horizontal" interactions are business relationships that officials enter into between themselves to make decisions on matters related to their areas of responsibility. "Horizontal" links are formed between the positions of different structural divisions of the company. Business relations within one structural unit, as well as the relations of employees with their managers, are determined by subordination relations and are regulated by the rules of interaction between the manager and the employee.
To streamline relationships at the enterprise, it is advisable to fix agreed positions in job descriptions (or contracts of managers), in particular:
Ranges of responsibility powers;
- "horizontal" interactions;
Table 3.1 - Matrix of "horizontal" interactions
| Position | Strategic Planning Director | CFO | Technical Director | HR Director |
| Commercial Director | 1. Reorganization of the organizational structure in changing market conditions | 1. Formation of price ranges. Sales volumes, discounts for increasing sales volumes. | 1. Formation of a promising assortment profile of products. | 1. Selection, transfer and dismissal of employees of commercial services. |
| 2. Formation of a promising product portfolio | 2. Formation of price ranges, volumes of purchases of raw materials and materials to ensure the smooth operation of production. | 2. Improving the quality of reliability and durability of manufactured products. | 2. Compliance with trade secrets. | |
| 3. Implementation of contractual relations with buyers and suppliers | 3. Issuance of products for sale. | 3. Provision of services to third parties by technical services | 3. Increasing the professional level of employees. |
|
| 4. Quality certification | 4. Development of a financial plan. | 4. Commercialization of non-industrial institutions. | ||
| 5. Planning the flow of receipts and payments. | 5. Social security of employees of commercial services. |
Responsibility;
Qualification requirements.
Consider the sequence of the process of forming a new organizational structure.
We will fix the main stages and types of work on the reorganization of the enterprise management system.
1. Fixing the existing staffing table.
1.1. Receipt of the existing staff list signed by responsible persons.
1.2. Design and development of a computer database "Library of Works" (in which all possible types of work that are currently being done in the company will be collected).
1.3. Conducting a survey of the organization's personnel in order to fill the "Library of Works". Entering results into a computer.
1.4. Analysis of the "Library of Works" for duplication of functions and the presence of gaps. Identification of factors, the implementation of which is important for the development of the organization.
2. Analysis of "gaps" in the organizational structure of the enterprise.
2.1. Identification of the causes of these gaps and their possible negative impact.
2.2. Structurization of the revealed "gaps". Identification of possible ways to solve problems.
3. Development of a new staffing table for the company.
3.1. Meetings with management and administrative staff (in person) to develop the concept of a new company structure.
3.2. Development of a draft staffing table (in the future, as the work progresses, it can be modified and changed).
3.3. Development of a package of provisions on structural divisions.
4.1. Development and approval of the standard form "Regulations on the structural unit". A model provision may include the following main sections:
General provisions (status, subordination);
Main tasks and functions;
Rights and obligations;
Responsibility;
The composition of the unit and the relationship;
Work organization.
4.2. Approval by the CEO of the company of a package of regulations on structural divisions.
five . Creation of a package of provisions and job descriptions for workplaces.
6. Development and approval of local regulations of the company:
Regulations on the structure of company management.
Internal labor regulations.
Staff Regulations.
Regulations on the organizational structure and staffing.
7. Setting up workflow.
8. Statement of management accounting.
9. Development and implementation of a progressive wage system.
10. Linking financial planning and company management to specific jobs.
Optimization of the wage system
The main principles of the new wage system at SibMetallTrans LLC should be:
The salary should compensate for the efforts of the employee that he needs to make to perform the tasks in this position;
Its level should take into account the personal contribution of the employee;
The amount of remuneration should be competitive in relation to a similar position at other enterprises in the region;
The salary cannot be reduced in case of a decrease in the volume of work for reasons beyond the control of the employee;
The size of wages and the rate of its growth must correspond to the rate of growth in the cost of living.
A permanent (base) salary is set for what the employee does in accordance with his job responsibilities; the variable part, based on an assessment of personal contribution, is for how he does it.
This contributes to strengthening the motivating role of wages, ensuring its greater dependence on the performance of the employee.
In order to more accurately differentiate wages, depending on the nature of the work performed, wage brackets are set at each rung of the ladder. Within the "forks", a specific salary is determined for each position based on the results of its assessment.
Evaluation of positions was one of the most difficult problems in the formation of a new system of remuneration at the enterprise. Evaluation of managerial positions is carried out according to the following criteria:
Education;
Work experience;
Responsibility for leadership;
The area of activity within which the official makes decisions;
The intensity of interaction with internal divisions of the enterprise, external organizations.
The choice of the above criteria allows you to set the amount of the base salary for each manager, taking into account the level of responsibility for the management, the scope of its competence and the decisions made within its framework, the need to establish effective relationships with structural divisions and organizations both inside and outside the enterprise, and required for this qualifications and wages.
At the same time, such requirements for criteria should be developed that motivate the improvement of the skills of managers, their mastery of modern methods of work on the basis of personal computers and the acquisition of management experience, the creation of conditions for the improvement of the qualifications of subordinates.
Due to the rapidly changing economic situation, regular re-evaluation of positions in the enterprise is required with a simultaneous review of job responsibilities. The advantage of the proposed system of organizing basic wages is its motivating nature, since wages:
Established on the basis of a formalized performance assessment;
The system of its improvement is linked with advanced training by performing more complex and responsible work, with promotions.
As a result of the application of the proposed system in SibMetallTrans LLC, the number of those wishing to improve their skills and thereby raise the level of wages, as well as increase responsibility for the functions performed, stimulate initiative has increased.
The management of SibMetallTrans LLC developed a strategic plan for 5 years (2005-2010). At the moment, we can say that most of the way has been covered and there are results that we can talk about.
Our plans include:
Opening branches in Tomsk and Krasnoyarsk to increase sales and, accordingly, market share (compared to 2003 - the year of purchase) in 2008 - 2 times, until 2010 - almost 3 times.
Improvement of sales activities
Creation of a marketing department at the enterprise and transfer of functions to improve the assortment.
The strategic plan covers the following areas:
1. Reorganization, optimization of product distribution channels - building a sales system.
2. Creation of a financial management system;
The ongoing reorganization is accompanied by the improvement of the management system and organizational reorganization.
First of all, we developed a new sales marketing strategy. The main elements of the new marketing strategy are:
Expansion of sales markets - output to regions adjacent to the main one;
Increasing sales volume by entering regional markets.
As part of the new sales strategy, we have created a regional distribution company, in our own sales department we have allocated a direct sales division, which includes regional managers and sales representatives. We have developed a new policy to stimulate sales, control sales at retail outlets, and create a logistics system.
The effective information flow management scheme of SibMetallTrans LLC made it possible to monitor the movement of funds and products in real time and accurately determine the range and quantity of rolled products available at metal depots. This is especially true for a partner who, despite the difference in time and distance, can go to the company's website and find the information he is interested in: assortment, stock balances, export price list, presented in several versions, taking into account shipment on any Incoterms terms 2000 .
CONCLUSION
An enterprise can only achieve a long-term restoration of competitiveness when it itself begins to solve its own problems, studies the market and competition conditions, and also explores the weaknesses of production processes.
The choice of the listed criteria in this work allows you to set the amount of the base salary for each manager, taking into account the level of responsibility for the management, the scope of its competence and the decisions made within its framework, the need to establish effective relationships with structural divisions and organizations both inside and outside the enterprise, and required qualifications and wages.
The need to solve a large set of tasks in the field of sales requires the creation of a flexible commercial service with a certain degree of independence. This can be achieved by organizing the service on a regional and product basis, transferring to the heads of the service certain powers and responsibility for the decisions made in the field of sales and purchases.
The marketing strategy is represented by the management strategy, the coverage strategy and the penetration strategy. This set of key strategies characterizes the marketing strategy as a strategy for the interaction of material (commodity) and information flows in the overall logistics system of marketing activities.
LLC "SibMetallTrans" rebuilt the company's management system, sales system, moved from centralized sales to regional ones. We have approved a partnership program - we have established mutually beneficial cooperation with our dealers in the regions.
And in conclusion, it should be noted that SibMetallTrans LLC received a management tool that gives us not only a flexible planning opportunity for prompt decision-making, but also the ability to remotely manage the investment object. Being in Novosibirsk, we have the opportunity to fully control the planning process in the regions, analyze the results and make adjustments to current plans. The staff of the enterprise has risen to a higher professional level, now it really conducts an economic analysis of the enterprise's activities.
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APPS
Annex A
The main ideas of the concept of "Management pyramid"
Management in a team is based on a hierarchical multi-level principle - top management, middle management, etc. taking into account the size and characteristics of the company. Each level is headed by a leader. He receives the task and the corresponding authority from the manager of a higher level and organizes the work of himself and his subordinates in such a way as to ensure the solution of the problem or offer options for solving it. Tasks are assigned to employees only through the heads of departments, who are personally responsible for their solution by the forces of the teams entrusted to them. The principle of leadership “over the head” is excluded.
In order to avoid excessive concentration of power and abuse of it, each division is open to contacts with managers and employees of any level and the necessary checks.
Such a situation is unacceptable when, instead of solving the problem, i.e. help his boss, the manager of a lower level in a non-constructive way brings his problems and justifications “upstairs” why the main task cannot be solved. In this case, the boss will have to solve the problems of the level of his subordinate himself, thereby doing his job. The pyramid occupies an unstable position. Possible reasons for bringing “upstairs” unresolved problems of a lower level are the inability or unwillingness of the corresponding leader to “work his bread”, inadequate setting of the task, or incompetence of the corresponding leader and his team.
The training lecture “Elements of professionalism in the work of performers of any level” is a set of rules, principles, methods, algorithms for the professional, ethical and effective work of the team, formed by the author on the basis of his managerial experience. At the same time, the goal is set: to bring to the attention of employees and discuss with them these methods of corporate culture, to form a team of like-minded people. Here are the main issues discussed.
We are all PERFORMERS.
Command. Teamwork.
Why is the team going?
Why are we here.
The role and importance of the sales department among other departments of the company.
Time of change and resistance of performers.
Problem is good! Formulation of the problem.
Management pyramid. Help concept.
Boss.
Why is it needed. Whose problems is he supposed to solve? What kind of help can be expected from subordinates. How to communicate effectively with your boss.
Setting tasks for performers.
Task prioritization.
Collective intelligence.
Organizing and holding meetings of a creative working group to solve non-standard issues using the brainstorming method.
Attitude to the “requests” of management.
Attitude to orders and requests from senior management.
What to do when using the “over the head” control method.
Effective meeting: organizing and conducting.
Meeting “Thinking in Common Goals”.
Recordings at meetings, negotiations.
“Mark” for performance.
Can you "talk"?
Can you argue?
“External” communications of the structural unit.
Trial period.
Dismissal in a professional company.
Plans and reports.
Attitude to changes in the reporting system.
Discipline. An unconventional approach to a traditional theme.
Business letter style.
An optimistic approach to work and life.
Aggressive approach to sales.
"I" and "We" in work with clients.
When you can "not think" when performing a task.
“Make me beautiful,” then I will work.
Are your “My Documents” rationally organized?
Advice to managers from Lazarev S.N.
Annex B
Establishment of regular management in the sales department or commercial department of the company
Figure B.1-Methodological support of the sales process
The paper presents the sales management process in the company for three years (2011-2013), analyzed the sales management process, identified weaknesses and strengths in the sales process..products, presented the Program for 2014-2016.
The purpose of the graduation project: the development of measures to improve the management of retail and wholesale sales in the spare parts market in LLC "Group of Companies" "Soyuz Region".
Achieving this goal required solving the following tasks:
- to study the theoretical aspects of sales management in the organization;
- to analyze the management of sales in the market of spare parts of LLC "Group of Companies" "Soyuz Region";
- to develop measures to improve the management of retail and wholesale sales in the spare parts market in LLC "Group of Companies" "Soyuz reg and he".
Object of study: LLC "Group of Companies" "Soyuz Region".
The subject of the research is the management of sales in the market of spare parts of LLC "Group of Companies" "Soyuz Region".
Research methods: analysis of scientific literature, secondary information about the activities of LLC "Group of Companies" "Soyuz Region", including the company's documentation, expert survey.
The diploma project consists of an introduction, three sections, eight paragraphs, a conclusion, a list of references and an appendix.
The modern market is a large system of links between producers and consumers and, at the same time, the most complex mechanism for identifying and coordinating their economic interests. Russia's transition to market relations created the prerequisites for competition, bankruptcy and self-development of enterprises and organizations. The material base of commercial activity, entrepreneurship and business that has been formed in Russia is evidenced by the shares of enterprises and organizations of the non-state sector, in general, among them is the fact of creating an infrastructure that ensures the development of enterprises.
Economic activity in the conditions of market relations, tougher competition and other reasons require continuous improvement of methods for planning and managing sales of goods and services in order to get more profit companies. The successful activity of any trade organization is ensured by the implementation of a set of measures of an organizational, technical, economic and legal nature.
An important place is occupied by the development of sound management decisions. The urgent task of their improvement is the need to take into account as fully as possible the factors that affect the current state of the organization and determine the forecast of its development in the future.
The importance of sales (services) management in the conditions of the development of the Russian market is especially relevant:
- growth in the number of commercial companies and the intensification of competition between them;
- increasing the role of the sales process as one of the main competitive advantages of the organization; the importance of sales management in the struggle for the conquest of the consumer and his commitment to the company's trademarks is growing; oversaturation of the market with goods leads to an aggravation of competition in the course of the sales process;
- the primary role in the performance of this task belongs to sales management as a direct area of activity aimed at selling a product or service and making a profit;
- the possibility of obtaining additional financing and strengthening the stability of credit relationships with the effective implementation of sales management in the company;
- the growing importance of sales management as an activity aimed at communication with the consumer in order to create a sustainable demand for products;
- increasing requirements for the quality of the sales process of a retail enterprise in establishing a mutually beneficial dialogue with the consumer;
- the sales process, which includes the training and education of sales personnel, must use the human resources of its organization and create a competitive advantage for the company in this direction;
- the need to create new methods of work of the sales service with consumers for repeat sales.
Based on the above characteristics of the market, it can be concluded that in the current economic conditions, the importance of effective sales management in a trade organization is increasingly increasing. It is one of the main criteria for the company to make a profit and maintain stability in the face of increased competition in the market among retailers and brands for the consumer.
The relevance of the graduation project is justified by the fact that in the conditions of market relations the commercial success of an enterprise depends not only on production capabilities, but to a greater extent on the successful sale of services.
The sale of products (services) is understood as a complex of organizational, economic, production and commercial activities related to the sale of finished products (services).
The range and assortment of products, their quality and quantity must not only satisfy consumer demand, but also ensure the flow of funds necessary to maintain a stable financial and economic situation and develop the enterprise.
Sales is one of the main components in the functioning of any enterprise. If a product is produced but not sold, then the resources spent on it will simply disappear. Production is organized with the sole purpose of selling the product produced. Therefore, the marketing system must meet the parameters of production and effectively organize its activities.
Today, the problem of sales is the most relevant, because if we take into account the economic state of many Russian enterprises, they cannot improve production processes due to lack of funds.
As a result, it is more profitable for an enterprise to improve the sales system, that is, to apply new sales schemes and interaction with consumers, etc.
Most manufacturers resort to the services of intermediaries in order to present their product on the market. Since it is intermediaries who are able to best offer goods to the target market.
Manufacturers are trying to form distribution channels, on the effectiveness of which the further prosperity of the company will depend. A distribution channel is one way or another all the companies through which a product passes on its way from the producer to the consumer. The importance of distribution channels in the life of enterprises determines the high relevance of their research in modern conditions, the search for new ways to improve them. As a result, the relevance of the research topic, its insufficient study in domestic and foreign literature led to the choice of the topic of the graduation project, its goals and objectives.
The sales management system for products and services is an element of the company's management system as a whole, one of the key concepts of the theory of organization, closely related to the goals, functions, management process, the work of managers and the distribution of powers between them to fulfill the goals of sales activities. Within the framework of the sales management system, the entire management process of sales activities takes place, in which managers of numerous levels, categories and professional specializations participate. The sales management system for products and services is built to ensure that all processes occurring in it are carried out in a timely manner and with high quality.
Hence the attention paid to it by the heads and specialists of the sales departments of companies, with the aim of continuous improvement, development of both the system as a whole and its individual components.
Currently, the following subsystems are distinguished as part of the sales management system for products and services: management structure; control technique; management functions; management methodology. The main task of the sales management system is to ensure that the organization gains and maintains a preferred market share and achieve superiority over competitors. Competent organization of the sales management system, reasonable formation and effective control of the organization's sales activities, optimization of sales planning procedures, control over the implementation of sales plans, commercial lending systems, receivables management, customer control procedures will significantly improve the company's sales activities in the face of increased competition.
The effectiveness of managing retail and wholesale trade depends on the speed of response to a problem situation and the validity of managerial decisions at the operational level, since the processes aimed at purchasing and selling goods are implemented by organizations daily to maintain the resource base and extract economic benefits. Operational management creates conditions for the uninterrupted supply of goods to the population, the rhythmic operation of retail trade enterprises, the fulfillment of plans for the sale of goods, maximization of profits and, ultimately, the realization of the social mission of consumer cooperation.
The theoretical and methodological basis of the study are the works of the following domestic and foreign authors: Azoev G.L., Andreev V.V., Berezin I.S., Borisov A.Yu., Basovsky, L.E., Golubkov, E.P. , Dobashin A. First of all, it is necessary to name the scientific works of: F. Kotler, G. Armstrong, W. Rudelius, N. Eriashvili, K. Howard. The problem of distribution channels is a key one in the works of the following domestic researchers: V. Utkin, O. Bendina, A. Romanov and others
Content
Introduction 3
1. Theoretical aspects of sales management in the organization 1.1. The essence and significance of sales in an organization 9
1.2. Management of retail and wholesale sales in the organization 16
1.3. Criteria and methods for evaluating the effectiveness of managing retail and wholesale sales in an organization
2. Analysis of sales management in the spare parts market LLC "Group of Companies" "Soyuz Region"
2.1. Characteristics of the technical and economic indicators of the activities of LLC "Group of Companies" "Soyuz Region"
2.2. Analysis of sales management in the spare parts market in Naberezhnye Chelny LLC "Group of Companies" "Soyuz Region"
2.3. Factors that reduce the efficiency of sales management in the spare parts market LLC "Group of Companies" "Soyuz Region"
3.Improve the management of retail and wholesale sales and in the market of spare parts in LLC "Group of Companies" "Soyuz Region"
3.1. Proposals for improving the management of retail and wholesale sales in the spare parts market in LLC "Group of Companies" "Soyuz Region"
3.2. Rationale for the implementation of project proposals
Conclusion
List of used literature
Applications
List of used literature
I. Normative - legal documents:
1. The Constitution of the Russian Federation (adopted by popular vote on December 12, 1993) // (subject to amendments made by the Laws of the Russian Federation on amendments to the Constitution of the Russian Federation of December 30, 2008 No. 6-FKZ, of December 30, 2008 No. 7FKZ) // Collection of legislation RF. - No. 23.
2. The Civil Code of the Russian Federation (parts 1, 2 and 3) (as amended and supplemented on February 20, August 12, 1996, October 24, 1997, July 8, December 17, 1999, April 16, 15 May, November 26, 2001.) (amended and supplemented on March 20, 2002) // Collected Legislation of the Russian Federation. - 2012. - No. 32.
3. Labor Code of the Russian Federation: Federal Law of the Russian Federation of December 30, 2001 No. 197-FZ, as amended. Federal Law of the Russian Federation of December 30, 2008 No. 309-FZ; // Collection of legislation of the Russian Federation. - 2010. - No. 1 (Part 1). - Article 3; SZ RF. - 2013. - №1.
II. Special literature:
4. Azoev, G.L. Competition: analysis, strategy and practice / G.L. Azoev. - M.: Center for Economics and Marketing. - 2013. - 247 p.
5. Andreev V.V. Electronic commerce. Product distribution through e-business / V.V. Andreev // Marketer. - 2013. - No. 1. - P.46.
6. Berezin, I.S. Marketing and market research / I.S. Berezin. - M.: Russian business literature, 2013. - 366 p.
7. Borisov, A.Yu. Competition: theory and practice / A.Yu. Borisov. Educational and practical guide. - 2nd ed., corrected. and additional - M.: Association of authors and publishers "Tandem", publishing house "GNOM-PRESS", 2012. - 384 p.
8. Basovsky, L.E. Marketing: a course of lectures / L.E. Basovsky. - M.: INFRA-M, 2013. - 345 p.
9. Golubkov, E.P. Fundamentals of Marketing: textbook / E.P. Golubkov. - M.: Publishing house "Finpress", 2012. - 278 p.
10. Dobashin, A. Marketing strategy optimization / A. Dobashin // Marketer. - 2017. - No. 1. - S.37, 77.
11. Evseeva G. The game of sales: suppliers of His Majesty the client // Marketing. - 2012. - No. 7.
12. Konstantinov, A.A. Analysis of the competitiveness of the organization / A.A. Konstantinov // Economic development of Russia. - No. 6. - 2013.
13. Kotler, F. Fundamentals of marketing: Textbook for universities. Per. from English. - M.: "Rostinter", 2008. - 306s.
14. Krylova G.D., Sokolova M.I. Marketing. Theory and 86 situations: Proc. allowance. - M.: UNITY - DANA, 2012. - 524 p.
15. Kretov, I.I. Quality management at the enterprise / I.I. Kretov. Practical guide. - M.: JSC "Finstatinform", 2012. - 181 p.
16. Lifits, I.M. Theory and practice of assessing the competitiveness of goods and services / I.M. Lifits. - M., 2012. - 592 p.
17. Lobanov, M.M., Osipov, Yu.M. Basic principles for assessing the competitiveness of products / M.M. Lobanov // Marketing in Russia and abroad. - 2013. - No. 6.
18. Lobanov, M.M., Osipov, Yu.M. Basic principles for assessing the competitiveness of products / M.M. Lobanov // Marketing in Russia and abroad. - 2013. - No. 9.
19. Moiseeva N., Sarycheva T. Intercompany marketing - the basis for the interaction of partners in the logistics system / N. Moiseeva // Marketing. - 2013. - No. 14. - P.65.
20. Marketing / Ed. prof. Utkina E.A. - M .: "Tandem". - 2012. - 320 p.
21. Marketing: textbook / A.N. Romanov, Yu.Yu. Korlyugov, Krasilnikov and others; Ed. Romanova. - Banks and stock exchanges, UNITI. - 2013. - 560 p.
22. Methodology for assessing the level of competitiveness of industrial products / Ed. A.S. Tolmacheva. - M.: Publishing house of standards, 2013. - 490 p.
23. Nazarenko V.O. Dealer network: fresh solutions for old problems / V.O. Nazarenko // Marketer. - 2013. - No. 52.
24. Nordstrom, CA., Ridderstrale, I. Funky business: capital dances to the tune of talent / K.A. Nordstrom. Stockholm School of Economics in St. Petersburg, 2012. - 612 p.
25. Rudelius U., Avdyukhina M.V., Ivashkova A. Marketing: a textbook for universities / U. Rudelius. - M.: Prospekt, 2012. - 596s.
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27. Skriba, N.N., Mikulich, I.M., Valevich, R.P. Business planning in trade: methodological approaches and practical recommendations / N.N. Scribe. - tutorial. - MN.: BSEU, 2013. - 216 p.
28. Utkin, E.A., Kochetkova, A.I. Business plan. How to start your own business / E.A. Utkin. - M.: Association of Authors and Publishers "TANDEM". Publishing house "EKMOS", 2012.-176 p.
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31. Pisarevsky, E.L. / Under the editorship of E.L. Pisarevsky: textbook. Tourist activity: Problems of legal regulation / NOU "International Business Academy". - Vladivostok: NOU "Institute of International Tourism of Vladivostok", 2013. - 286 p.
Introduction 3
1. Theoretical foundations of sales management 5
1.1. The concept and essence of sales management 5
1.2. Factors affecting sales management 16
1.3. Organizational support for sales management 20
2. Sales management on the example of Technology LLC 31
2.1. General characteristics of the organization 31
2.2. Organization of sales management in the organization 36
2.3. Analysis of sales management in an organization 40
3. Improving sales management LLC "Tekhnologiya" 49
3.2. Development of a motivation system for employees of the sales department 54
3.3. Improvement of the discount system 57
Conclusion 61
References 66
Applications 69
Introduction
The relevance of the study is due to the fact that effective sales management can lead a business to prosperity, and its absence to decline. Sales management is a complex, multifaceted concept, to which, however, a generally accepted approach has not yet been formed. Some experts consider it as a management issue, and first of all by people who are engaged in sales (including recruitment, motivation, training, etc.). Others believe that sales management is primarily channel management. Quite a lot of attention is paid to the need to automate the process of interaction with customers, which is also called sales management. From our point of view, sales management is an area of practice that is formed at the intersection of management, marketing and the actual art of sales.
Increasing the efficiency of the sales force is a complex task. Its solution requires intensive efforts of the company's top management, sales executives and ordinary client managers. However, for many organizations, the end result is many times more worth the effort. In addition, the implementation of such programs is already turning from a simple opportunity into a necessity: the high efficiency of sales services will become one of the key competitive factors in the near future. It is very important to recognize the fact that, in order to be effective, sales related activities must be carried out in the context of an overall strategic marketing plan. In this regard, sales strategies and tactics can only be selected, implemented and evaluated within the overall objectives of the company and its strategic planning processes.
The purpose of the thesis is to analyze and improve the sales management system in the enterprise.
To achieve this goal, it is necessary to solve the following tasks:
reveal the concept and essence of sales management;
to investigate the factors influencing sales management;
describe the organizational support for sales management;
analyze the sales management system at the enterprise;
suggest ways to improve sales management in the enterprise.
The object of study of the thesis is LLC "Technology".
The subject of the research is the management of sales at the enterprise.
The information base of the work was the works of domestic and foreign scientists in the field of marketing, commercial activities, sales management, as well as information from the company "Tekhnologiya" LLC.
The results of the diploma research can be used in the current management activities of the enterprise in order to improve sales management.
Conclusion
Summing up the results of the thesis, we can draw the following conclusions:
Sales management includes both people management and sales process management.
We can distinguish the following positive trends in the field of sales management: in general, attention and interest in this area is growing; more and more companies are starting to use such a management tool as sales planning; more and more attention is paid to professional development of sales specialists; increasing attention to the issues of customer orientation and maintaining relationships with regular customers.
At the same time, many aspects of sales management have not yet been sufficiently developed in Russian organizations: quite often, the concept of a “target client” itself is absent in a company; the distribution system of many companies is not efficient enough; undoubtedly, more and more companies use sales planning, but so far planning is carried out in a general way; the distribution of functions in the sales department is also very often far from optimal; performance-based motivation schemes for sales staff are still rarely used; so far, despite the fact that sales trainings have become traditional, only a few sellers know how to correctly talk about the product, answer questions, be active, but not be intrusive; Until now, few companies can boast of a well-functioning system for recording sales information.
There are the following types of structure of the sales department:
1. Linear. Is the simplest. It usually assumes that the sales department, consisting of a number of employees, reports to the head of the sales department, and he, in turn, reports directly to the director, who is the only head. Here power is directed from top to bottom, directly from the supreme leader to the last subordinate.
2. Linearly functional. This view takes a linear organization as a basis and adds to it functional units and divisions that are specialized in various areas.
3. Functional. If it exists, each specialist in a particular type of activity - say, advertising or sales promotion - has direct authority over sellers in the performance of this function.
4. Horizontal. This is the most progressive type of structure. Here the main feature is that the division of management into levels and the drawing of boundaries between departments is denied. All divisions of the company are divided into autonomous small groups, reporting directly to the commands of their leader. Relations between departments are at the consultation level - marketing group, advertising group, etc.
The practical part of the study was carried out on the example of the production company OOO Tekhnologiya.
Technologiya LLC is a well-known manufacturer of stained-glass windows, windows and doors made of aluminum profiles, facade cassettes made of aluminum and composite, bent elements made of sheet steel with nine years of experience.
Sales management in Technology LLC is carried out by:
head of the sales department and his subordinates (customer acquisition manager, customer management manager);
head of the marketing department and his subordinates (marketers).
To increase the sales of products, Tekhnologiya LLC actively uses sales promotion methods. The main objectives of these events are: increase in the number of buyers (including regular ones); accelerate the turnover of goods; elimination of excess inventory, increase in revenue from product sales.
The main tasks and methods of sales promotion, depending on the type of target audience in Tekhnologiya LLC, include:
1) Sales promotion activities aimed at the consumer - aim to introduce the consumer to the novelty; "push" him to buy; increase the number of commodity units purchased by one consumer; to encourage adherents of the brand and regular customers; reduce temporary fluctuations in sales, etc. The main means of stimulating sales in this area are: discounts on prices; promotions and advertising; granting loans and installments.
2) Sales promotion measures aimed at resellers have the following goals: to stimulate orders for the maximum volume of consignments of goods for sale; to encourage the exchange of experience in the implementation of a particular product; reduce temporary fluctuations in the receipt of orders from intermediaries, etc. Among the most common methods used are the following: price discounts for a specified volume of a consignment; deferment of payment; bonuses - "pushers" paid to dealers when selling goods in excess of their agreed quantity for a certain period of time; participation in a joint advertising campaign with an intermediary with appropriate compensation of advertising costs to intermediaries; technical support of dealers; "sales account".
3) Sales promotion in relation to its own staff aims to increase sales, encourage the most efficient workers, and additionally motivate their work. The main means of stimulating sales in this area are: providing the best managers with additional vacation days; when fulfilling an individual sales plan, the sales manager receives a bonus of 20% of the salary.
In the course of the study, the following shortcomings in sales management at Tekhnologiya LLC were identified:
the sales promotion system is not supported at the proper level by advertising, which practically devalues all the efforts of marketers;
weak motivation of employees of the sales department to sell products;
the system of discounts can be finalized with a focus on new customer segments.
Based on the results of the analysis, the following areas for improving sales management at Tekhnologiya LLC were identified:
1. Improving the advertising activities of the enterprise. Effective advertising implies a combination of effective creativity and optimal placement, ensuring coverage of the largest part of the target audience. As recommendations for improving advertising activities at the LLC "Tekhnologiya" enterprise, we can offer:
As for the content of advertising LLC "Tekhnologiya", here we can advise the main emphasis in promotion not only on quality, but also on a wide range, fast installation and installation times, discounts. By the New Year holidays, in advertising messages, it is necessary to focus on New Year's gifts (discounts), the onset of cold weather (warmth, comfort, winter airing as a gift) and on dreams of a warm summer (drawing tickets to warm resorts);
2. Improving the motivation of employees of the sales department. The remuneration of employees of the sales department of Tekhnologiya LLC is proposed to be divided into two parts:
Permanent part: salary. It should be within the average wages presented on the labor market for similar positions;
Variable part: quarterly bonus system.
This method of evaluation and accrual allows:
Show the employee what his strengths are and what he still needs to work on;
Reward for completing tasks or, conversely, punish for mistakes;
Distribute bonuses depending on what is the highest priority for the company at a certain stage of development;
Create individual bonuses for each employee depending on the area of work and his personal qualifications.
3. Improvement of the system of discounts. It was proposed to supplement the existing system of discounts with special conditions for privileged categories of citizens - young families, the elderly, defenders of the fatherland and order. The main goal of the event is to make the products of Technologiya LLC more accessible to the socially unprotected and those most in need of support.
Bibliography
- - Convince a potential customer to try a new product or service.
- - Make sure that existing customers are satisfied and continue to buy goods.
- - Convince customers to increase the volume of purchases.
- - Provide feedback, informing about the wishes of customers, about the positioning of the improved product and the success in the marketing tactics of their own firm and competitors.
- their achievement requires significant (limiting, but achievable) efforts from employees;
- they are expressed in specific figures;
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- the ability to establish friendly relations with clients;
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- ability to counter objections and work with failures.
- negotiation training;
- training in dealing with customer objections;
- the ability to establish contact with "difficult" clients;
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"Sales management" is a multifaceted concept, to which, however, a generally accepted approach has not yet been formed. Some see it as a matter of management, primarily by people who are involved in sales (including recruitment, motivation, training, etc.). Others believe that sales management is primarily channel management. Quite a lot of attention is paid to the need to automate the process of interaction with customers, which is also called sales management. Marketing is the management of sales development in a modern organization. Perhaps no other activity in business is as actively discussed between those who are professionally involved in this activity and those who are not directly involved in it as sales. This is not surprising when one considers that so many people make their livelihood either directly or indirectly through sales. And even those who are not directly involved in sales regularly come into contact with them as consumers. Perhaps because of this familiarity, many people have a strong, albeit often distorted, point of view about sales. Surprisingly, many of these misconceptions are shared by people who work in sales themselves; this is probably partly due to the well-known aphorism "Proximity sometimes breeds neglect." It is important to understand that sales and sales management, although they are related concepts, are not identical, and therefore we will consider the essence and roles of sales and sales management in modern organizations. If a firm manufactures or sells industrial products, then an integral part of its marketing service is sales services and a sales strategy.
This work is aimed at considering the issues of effective sales management in an organization using the example of Uralekkom LLC, the main activity of which is the sale of household appliances in large and small wholesale. Any new product or service goes through a chain of personal sales at different levels from the very beginning. First you need to convince the need for the production of this product, that is, to conduct its personal sale to investors and senior managers. Then - to producers and sales service. And only then does the sales department get the opportunity to conduct personal sales to distributors, retailers or end users. Thus, the path that a product or service takes from the idea of production to consumption is unthinkable without a whole chain of personal sales. Personal selling is by far the most costly communication strategy, targeting several key objectives:
More and more companies are beginning to understand that in order to succeed in today's environment, you need a different approach to doing business than before. Consumers today are better educated and know much more than in the past. In recent years, real incomes have been steadily rising, and consumers now have large funds that they can use to purchase a wide variety of goods and services. Too many companies have had to learn, at a high price, what a great product, efficient production, and advanced promotion are all about, but not enough to ensure automatic success. To have a serious chance of success, customer needs must become the center of planning for the entire business. In particular, it is the emphasis on the importance of understanding consumer needs that explains the emergence of concepts and techniques aimed at understanding consumer behavior. The topic of the work is relevant, because. the development of successful measures to manage sales in the enterprise is one of the necessary conditions for increasing profits in the enterprise as a whole. Effective sales management is designed to provide a favorable environment for the further development and growth of the company, and also ensures a stable position in the market, competitiveness. IP Suvorov M.A. is the official representative of the trademark "Eldorado" in Chelyabinsk. This is a trading company that sells household appliances. The purpose of the activity of Uralekkom LLC. is gaining popularity and trust among buyers, gaining a dominant position in the market for the sale of television, video, audio - household appliances, providing additional services to customers related to its operation, as well as expanding the distribution network. The purpose of the work is to develop recommendations and measures to improve sales management in the marketing system.
To achieve this goal it is necessary:
Summarize the theoretical and methodological foundations of sales management of a trading enterprise.
Conduct a comprehensive analysis of the existing sales management system at Uralekkom LLC.
The object of the study is the activity of LLC "Uralekkom". in the market of wholesale sales of household appliances.
The subject of the study is the wholesale sales management system at Uralekkom LLC.
Improving the performance of sales departments is a complex and time-consuming procedure. Since each case has its own characteristics, there is no single “recipe” for it. The length of the customer acquisition cycle, the need to target sales to certain types of people, the ability or inability to reach all customer groups at once - all these and many other factors must be considered. Let us formulate general principles.
Experts identify two key factors that affect the effectiveness of the sales department: the personnel management system and the competence of employees. Each of these factors, in turn, consists of several aspects. Let's consider each of the blocks in more detail from the point of view of measures that increase the efficiency of the "salespeople" as a whole.
Sales personnel management system
This includes aspects such as structure, planning, incentives and control.
1. Structure
Depending on the specifics of the company's activities, it is necessary to form the optimal structure of the department and determine the size of the selling unit. Most often, it is advisable to divide the sales department into several sub-departments, each of which takes on a specific area of work. It is this structure that usually happens in financial and credit organizations whose activities are aimed at serving customers from various industries.
It is also necessary to determine the concept of forming the size of the selling unit: either the organization hires a small number of employees - salespeople of the highest qualification with the appropriate level of payment, or for the same money the company hires a larger number of managers of medium qualification.
Note: over the employees of the sales department there should not be superfluous management links dealing only with plans and reports. As experts note, in case of successful implementation of the plan, “extra links” usurp success, proving that it is solely their merit, and in case of failure, on the contrary, they shift all responsibility to others. Which, ultimately, comes down to the dismissal of salespeople or a banal shuffling of personnel.
Important: a lot depends on the head of the sales department, so it is important to correctly assess his professional and managerial level, if necessary - to train, in extreme cases - to replace. As a rule, only a high-class salesperson with organizational talent and managerial training can effectively manage a sales department. Sales should be managed by people who understand the process “from the inside”, know its specifics and have achieved significant success in this area.
2. Planning
We can talk about an effective planning system if the fluctuations from the plan are no more than 10-15%, experts in the field of sales management say. Therefore, planned indicators for "salespeople" must meet a number of criteria:
Note: reporting for any period, sales managers should not be burdened with the need to prepare and write purely formal reports. Such a situation can often be observed in large companies, as well as in organizations where the department is headed by a person who has not left the field of sales, experts say. At the same time, employees are forced to spend a significant part of their working time not on business, but on unnecessary “scribbling”.
Important: do not neglect old clients in favor of new ones, even very large and promising ones. It's no secret that attracting new customers costs companies five to six times more than maintaining relationships with existing partners.
3. Stimulation
When building an incentive system, it is necessary to take into account at least two principles - transparency and fairness. Despite some abstractness of these criteria, there are fairly accurate tools that determine the compliance of the incentive system with these requirements. The incentive system is considered transparent if the employee can independently calculate the level of his income for the selected period of time, and can also plan his position in the company when certain results are achieved. The sales employee's perception of the incentive system as fair or not can be determined through regular surveys. And best of all, if this is done by a specialist in personnel management.
Achievement should be rewarded - this is a rule that should always be observed. Indicators can be, for example, the number of calls per day, the number of newly attracted customers, the amount of orders for the period, the percentage of returning customers, the percentage of successful calls.
Note: the amount of remuneration should be clearly related to the real results of work - that is, the achievements of sales managers should be real, not imaginary. For example, employees in a department may recruit high-risk or “blank” customers to serve them and thereby ensure that the sales plan is only “on paper”. For example, a contract is concluded for a large amount, but there are no actual shipments under the contract.
4. Control
We can talk about an effective control system if all the processes taking place in the department are “transparent” for the head of the sales department. To this end, it is necessary to formalize all business processes, from customer search to after-sales service. Experts recommend, depending on the size of the company, to use various CRM systems. Many of them allow not only to structure work with clients, but also to track the performance of their duties by employees. The main thing is to position the filling of control forms as an integral part of the work. To do this, it is necessary that the information contained in the reporting forms is important for employees, for example, it allows them to calculate their income for the current month.
Note: the data obtained during the control process should provide objective information about the capabilities of each specific manager.
For example, if a manager makes 20 meetings per month, and only 1-2 of them end in a contract, and the average ratio for the department is 30%, this means that the manager must determine the cause of failures and help the subordinate work more efficiently and earn more.
Personnel Competence
The competence of the personnel is understood as the presence of such components as motivation, qualifications and personal qualities necessary for effective work in the field of sales. The main skills of sales personnel, according to experts, can be considered the following:
It is these employees who should be hired to work as “salespeople”. And in order for the department to work effectively, an audit of its personnel should be carried out at intervals of at least 3 times a year - professionals advise. One of the tools that determine the state of the human resource is an assessment. Assessment is a specialized in-depth methodology for appraising personnel and evaluating candidates for vacant positions.
Note: the success of many sales managers obeys the law of the sine wave. First, the rise (accumulation of the client base, sales growth), then the top (success, accumulated client base, high sales), and then the “curve” goes down. Therefore, the head of the department should feel in time that the subordinate is “on the verge of recession”, and entrust him with a new interesting business.
5 reasons preventing you from increasing the efficiency of your sales team
1. The sales manager doesn't want to sell
In the labor market, the vacancy "sales manager" is perhaps the most in demand. But alas, only a small proportion of applicants go to this job with motivation and a sincere desire to sell. Therefore, it is not uncommon that managers call or approach clients through force. A common fear of sales managers is customer rejection. Fear of asking a difficult question to the buyer or complexes that prevent dialogue and close the deal. Factors like these can and should be addressed to help your managers improve efficiency.
2. The sales manager does not have the necessary set of skills and abilities
The sales process has a general structure, but there are significant specific features in different businesses, structures, industries. Often sales managers moving from one company to another, believe that the difference is not significant.
Having got used to the fact that he closes the deal relying on his skills and experience, or maybe luck, he begins to believe that he can sell anything, even equipment, even complex complex products / services. Such an employee either does not change his usual work style, believing that everything is in order, or does not see how to do it (and here you should come to his aid).
3. The Sales Department Doesn't Have a Sales Process Scenario
Scenarios for working with clients are needed not only for beginners, but also for experienced employees. Of course, each dialogue has its own unique component. But, if the sales manager does not know the structure of the sales process, does not know the typical questions that should be asked to the Client and in what sequence, what knowledge about the product / service will help him, he will never be able to work effectively. Help your salespeople be prepared in advance for typical customer work situations.
4. There is no training system for the sales department
Of course, without basic training for new employees in the sales department, you should not count on high results. Even if your company does not have employees responsible for training, we recommend building a mentoring system. Remember that the effectiveness of your business depends on the quality of adaptation and training of beginners. Conduct several trainings or meetings of the head/mentor with the new employee of the department.
Periodically, it is necessary to conduct training for experienced sellers. In this work, a “shake-up”, a motivation for further success and development, is very important. Your employees must have an understanding that their work is valued and you are ready to invest in the further growth and development of your team.
5. Not enough data for sales analytics
To build the effective work of any department, the manager always needs to have up-to-date data. The sales department is no exception. It's not just about standard KPIs for employees and departments. Think about whether you have information about each of your employees, at every stage of their work with a client? Do you have enough data to identify problems and develop effective measures to solve them? Now in the information technology market there are a lot of solutions that allow you to improve sales analytics. Think about what data you are missing, how you can get it, and how you will use the information received in the future?
How to solve these and other problems?
Training newcomers and professional development of successful employees
Only competent employees who are able to interest a potential client in possession of information about the proposed product can increase sales efficiency. What to teach? At a minimum, create a knowledge base. Make training and workshops mandatory for all employees. Directions for training sales managers:
Engage in the development of work rules
Documented rules for department employees can improve sales performance, especially if there is staff turnover. Both new employees and old employees must adhere to the standards and methods of interaction with customers adopted by management.
Make it a rule to keep statistics of customer requests
An effective sales team uses advertising (outdoor, network, radio and television, print media) to promote its product. You can learn about the effectiveness of an advertising campaign by analyzing how many people contacted the company (and thanks to what type of advertising).
Test different options for client meetings
It is better when 2-3 experienced (if possible) sellers participate in a conversation with a client, who know the full picture regarding the conclusion of the transaction and the intricacies of the product (service provided). The buyer significantly increases the degree of its importance and the level of confidence in the company, which is able to send several of its employees at once to discuss the contract being concluded.
Adequate and effective motivation
Saving on the sales department, you reduce the company's revenue. Therefore, you should take care of the remuneration of sales staff in advance. In practice, two concepts are most often used. According to the first of them, the amount of remuneration of an employee depends on the volume of the plan. In the second case, the employee is paid remuneration as a percentage of sales or profit. Which method is more correct depends, first of all, on the specifics of the business.
"Extra links"
Make sure that there are no superfluous management links above the employees of the sales department, dealing only with sales plans and reports. As practice shows, in case of successful implementation of the plan, “extra links” usurp success, proving that this is solely their merit, and in case of failure, on the contrary, they shift all responsibility onto others. Which, ultimately, comes down to the dismissal of salespeople or a banal shuffling of personnel.
Caution - empty formalities!
Make sure that salespeople are not burdened with the need to prepare and write purely formal reports. This situation can often be observed in large companies, as well as in organizations where a department is headed by a person who has not come out of sales. In such a situation, employees are forced to spend a significant part of their working time not on business, but on unnecessary writing.
Real profit
Make sure that the sales team does not have an incentive to attract clients with an excessive degree of risk (for example, in the financial or banking sectors) or “empty” clients and thereby ensure that the sales plan is only “on paper”. A contract has been concluded for a large amount, but there are no real shipments or financing under the contract. In this case, the remuneration should not depend on the amount for which the agreement was concluded (for example, on the funding limit set for the client), but on the amount of the transaction carried out under this agreement (for example, the amount of financing paid to the client under the agreement).
Dismissal of inefficient
The saddest point. If you can’t “stir up” an employee in any way, evaluate his diligence and personal qualities. If it's suitable for another job (such as handling contracts or supporting current clients), translate it. He himself will be happy, because no one likes to work badly. If there are no options, talk to him politely and ask him to write a statement. This is your business and you can't sponsor underperforming employees.
We have analyzed the main ways to improve the efficiency of a sales manager. After completing these simple steps, you can take on the jewelry work to increase conversion at each stage of sales for each specialist.