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Commercial Management

This document describes the main actions of commercial management in companies, including the selection of products and services, market research, the development of sales strategies, customer contact, customer classification, and participation in sales conditions. It also discusses the instruments for measuring commercial management such as total sales, contribution margins, and market share.
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0% found this document useful (0 votes)
15 views5 pages

Commercial Management

This document describes the main actions of commercial management in companies, including the selection of products and services, market research, the development of sales strategies, customer contact, customer classification, and participation in sales conditions. It also discusses the instruments for measuring commercial management such as total sales, contribution margins, and market share.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

NATIONAL UNIVERSITY OF CAJAMARCA

F. CECA / E. A. P. OF ACCOUNTING

ACCOUNTING ORGANIZATION OF MARKETING -2020- I


(Sem.13 - Te -2)

Actions of Commercial Management


Commercial management in companies acts like a kind of engine and in general,
commercial function activates other areas or units, directly influencing them
or indirect. Determine the volumes that need to be produced and/or purchased to meet the
demand, the specifications required by the client, the prices and payment methods, the
communication and has the power to even alter the dynamics of corporate strategy. For
Thus, the commercial function is framed within the following actions:

Selection of products and services.

The selection and design of goods and services is one of the main functions
within the operations management that seeks prosperity and growth of the
organization. It consists of deciding what type of product is convenient to trade.
company.

The topic of supplier selection is a process that is present throughout


organization, due to the necessity of acquiring goods and services such as
machinery, raw materials, cleaning services, etc.; so this process must be
focused on the search for quality. The key in selecting suppliers of a
product or service relies on the importance of knowing which criteria to use for
select them, since it must be taken into account what kind of impact they will have
products or services they offer and if this will have a positive impact with the
productivity, quality, and competitiveness of the organization itself.

Investigate the market.

Market research is the process that includes the actions of


identification, collection, analysis, and dissemination of information for the purpose of improvement
the marketing decision-making. Its implementation occurs, basically, due to
two reasons: (1) to solve problems, for example, to determine the potential of a
market; and/or (2) to identify problems, for example, to understand why a
The product does not have the expected consumption. Essentially, the goal is to get to know the customer.
thus fulfilling the first premise of marketing.

In general, it can be said that there are two reasons or objectives for implementing a
market research: (1) generate the information to have greater success with the
marketing of a product or service; and (2) generate the necessary alerts to avoid the
failure to market it. Both could be summed up in one: reduce uncertainty
for decision making.

Develop strategies related to sales.

Sales strategies are one of the most important pillars in any company.
to achieve good economic results and to grow.
That is, in sales strategies, the actions that will contribute to the
growth of the company so that it reaches the expected profitability.

While sales strategies define how a company is going to achieve its


sales objectives, the sales processes indicate a series of actions that achieve
achieve more sales.

If I had to settle for a good definition of sales strategies, I believe that


it would be the following.

A sales strategy is a strategic process designed to achieve


some business objectives.

They must know that a company's sales strategies (about the 4Ps) go
to be oriented to:

Let the people who do not know us buy from us.


Let the customers of the competition buy from us.
That our current clients buy more from us.

These are the ways we have to grow our business.

Contact clients.

Customer touchpoints are the points of contact between your brand and the customer.
customer throughout the entire process. For example, customers can find your
online business or in an advertisement, see ratings and reviews, visit your website,
buy at your retail store, or contact customer service
to the customer. It seems like a long list, but these are just a few of your points of
contact.

To identify your customer touchpoints, make a list of all the places


and moments when your customers can come into contact with your brand. Here we have
a list of contact points, although it can vary quite a bit depending on the business.

Before a purchase After a purchase


Social networks Store or office Billing
Email from
Ratings and reviews Website
transactions
Emails from
Recommendations Catalog
marketing
Support teams and
Mouth to mouth Promotions
customer service
Participation in the Sales team or Assistance center in
community personal line
System of
Announcements Follow-ups
telephone attention
Marketing and relationships Point of sale Thank you cards
public
Choose how to reach the customer.

Customers can be classified by status, by purchasing volume in a


determined period of time (for example: Annual), by its seniority, by the
purchase frequency, by the lines of products they buy, by their degree of
influence, etc. The decision to use one criterion or another depends on the aspects that
they are considered determinants for the company and allow for enriching the analysis
of these.

The customer classification will allow for segmenting and selecting the strategies to be applied.
the activities to be developed, and ultimately, the efforts and resources that are
they will be dedicated to each type of client according to the type of relationship they wish to have with each one.
One. The analysis by type of clients will allow identifying the clients with the greatest potential.
for the growth and sustainability of the business. As you can see, the ability to classify to
Your clients and potential clients are a fundamental task if you want to get things done.
good.

Participate in the decision on sales conditions.

Nowadays, companies no longer compete with each other, they compete with networks. That is to say, the
the company with the best network is the one that wins (suppliers - company - channel -
client). Manufacturing companies have directed their commercial efforts towards the
distribution channel. It is estimated that 40% of advertising investment and
communication is focused on innovative trade marketing as a practical model
for sale to attract consumer attention and trigger their buying decision there
favorable.

Consumer behavior studies in various countries confirm that more than


70% of consumers' buying decisions are made at the point of
sales. And if we exclude men from the analysis, the percentage increases.

Sell.

The sale can be said to be the contract through which one thing is transferred.
own todomainalienated for the agreed price. The sale can be something potential (a
product that is for sale but has not yet been purchased) or an operation already
concretized (in this case, it necessarily implies the purchase).

Currently, with the inevitable development of the Internet, there has been an explosion of
another type of sale, the online one. This consists of the consumer accessing the website
of a company in question where you will learn about all the products it offers. From this
the way he chooses, he will provide his credit card information and will receive
comfortably in their home that article they have purchased.

Instruments for measuring commercial management.

Modern organizations, immersed in a highly competitive environment, find


that their only guarantee of survival and success is being more efficient in their process of
Sales. Automating the sales process is very important to have a commercial process.
structured, defined as this is the foundation that will help you manage in the best way
all the activities that take place during it and to make the most of
the sales opportunities you have and that as you know require a lot of effort
and resources to obtain them.

The measurement of commercial management is an activity that should be measured through various
instruments, which must be accompanied by somewell-defined objectives and a plan, to
what actions the company should adjust to implement. All of this, without losing
from the perspective of how the business evolves and how the industry it belongs to evolves. Among
we have these instruments:

Total sales in soles.

Sales Revenue, this measure can tell many things about your company.
The month-to-month sales results show if people are interested in
buy your product/service, if your marketing efforts are profitable, if
you are still far from the competition, and much more.

When evaluating sales revenue and setting goals, it is important to remember that
Sales results are affected by many other factors. The person who
tracking the Key Performance Indicators (KPI) of sales should also be known
recent changes in the market, previous marketing campaigns, actions
competitive, etc.

Profit margins on sales evaluate the company's earnings by


each billing cycle. The most commonly used are the gross margin and the margin
operational.

Total sales in units.

The data is not just the numbers generated by operations but rather, the
fundamental reason behind the business commercial management.

It is clear that understanding the causes of your results is very valuable information.
for the development of your business.

Proportion of the total market that extends (measured in percentages).

Market share allows one to understand the size of a company in relation to the
the rest of the market and with its competitors. It is used to determine what is the
market leader and, through its monitoring in different periods, such as
Every quarter, investors can determine which companies are making a profit.
quota and those who are losing it and, therefore, who is stealing quota from
market to whom.

Market share is the percentage that the company


it has of the market (expressed in units of the same type or in sales volume
explained in monetary values) of a specific product or service.
In Marketing, the market share percentage of a product is equal to the value
of its absolute sales divided by the total sales of the market or segment,
multiplied by 100.

Profits.

The ultimate goal of any business is profitability, that is, the relationship that exists
between the benefits and the investment.

It is said that a company is profitable when it generates profit or its revenues are
greater than their expenses, and the result of the subtraction between these components is
considered acceptable.

Profitability is not the same as profit. We could say that profit is the
difference between income and expenses. Profitability is the utility measured in relation to
active.

There is a variety of ratios and indicators to assess profitability. Broadly


features, there are two main types of profitability measures: the calculation of the
profitability indices on sales and the calculation of profitability on capital
the company. The two types of indicators are related to each other, but it is necessary to
take into account that there are certain differences in the way they interact with each other
they.

Therefore, profitability is a key indicator for your business, the problem is that
when you study this figure at the end of the year you will know if your business is viable or not, if it's doing well or
He's bad, if you can keep betting on him or you're losing money, but he won't tell you anything.
about what you have done well, the mistakes you have made or what you need to improve.

The combination of the indicated commercial actions and the ways in which it is measured
commercial management shows that there are many responsibilities that the staff of
The commercial area of any company must face.

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