Distribution, sale, marketing

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Distribution, sale, marketing
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The main idea of the productive process
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Distribution, sale, marketing

• The main objective of distribution, sale and
  marketing
• To encourage the most important objective of the
  firm the sale of the product
• Basic problems
• Before starting of the production it is necessary
  to obtain the information about the market needs
• what kind of products will be produced
• what amount of products will be produced
• what way of production will be used
• which business partners will be asked for
  co-operation (decisions about sub-suppliers)
• To sell the product after its finishing how to
  get the product to customers

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The sale and the distribution

• The sale
• an act of the exchange, to that happen on the
  market
• at the sale the seller obliges to transfer the
  property right to use for the buyer and the buyer
  obliges to pay the purchase price
• The sale is directed with
• The valid legislation (business code, exchange
  code, other regulations)
• The social and ethic standards
• The distribution
• ensures the offer and sale of produced goods or
  services
• The firms run is assured with the constantly
  repeating process of the creation and the
• evaluation of the firms performance
• The performance creation
• is connected with the buying of the basic
  productive factors and their reprocessing into
  the form of goods or services
• The evaluation of the firms performance
• is connected with the searching of the customers
  and the physical distribution of goods and the
  providing of deliveries and services to the
  customer

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The evaluation of the firms performance

• Evaluation can be expressed with the following
  scheme called the closed value cycle
• Money ? productive factors ? productive process ?
  products and services ? evaluation ? money

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The sale and the distribution

• The basic activities of the sale and the
  distribution
• The elaboration of strategy and the plan of the
  way of distribution and sale. This elaboration
  comes from the structure of the productive
  programs and the form and type of the production
• The analysis of the sale and the management of
  the costs connected with the sale
• Receipt of orders and the orders management
• The contact with the customers
• The physical distribution (this physical
  distribution is usually not connected with the
  building production)
• The management of the stores of the final
  products and their storing (except the building
  production, because in the case of the building
  production the storing of final production is not
  actual)
• The packing (this activity is not connected with
  the building production as well)

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The sale and the distribution

• The costs of sale
• For the needs of monitoring and management these
  costs could be classified according to the
  following aspects
• According to the purpose the cots connected
  with transport, service, advertising and
  promotion, storing of final products, demand on
  customers
• According to the kinds the costs in the
  structure of material costs, wage costs, costs
  for the services of the non-material character
  (phone, post, accommodation), others more closely
  unspecified costs

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Marketing

• The activity connected with the communication
  between the firm and the market (or the situation
  on the market) necessary for detection of market
  needs and their satisfaction
• The marketing in the firm is connected especially
  with
• following activities
• The detection of market needs
• Implementation of the production according to the
  detected needs
• The choice of suitable providers of material and
  the services for this production
• The marketing we can divide into two areas
• Marketing in the firm
• Marketing of the firms surrounding

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Marketing in the firm

• The marketing in the firm is applied in
• In the organisation structures
• In the firms conception
• In the firms strategy

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Marketing in organisation structures

• The relation between the marketing and the
  organisation
• structure in the firm
• it is necessary to create certain organisation
  structure in the firm that is corresponding to
  the needs of marketing
• it is good to establish particular firms organs
  with corresponding authorities and responsibility
  for the strategic leadership of the firm that are
  able to
• monitor the market in the longer time horizon,
• predict or forecast the expected market
  development
• provide relevant information to the firms
  management

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Marketing in the firms conception

• Marketing conception
• supposed way or plan, how to sell production best
  and most efficiently and how to make customers to
  prefer this products before the products of our
  competition
• Possible conceptions
• Productive conception
• tries to keep low production costs and low sale
  prices
• the presumption of this conception is the fact
  that the customers know the quality of the
  provider and of the competition as well
• we talk about the price competition
• Product conception
• the firm has the effort to keep the price of
  production and to compete in the products or
  deliverys quality and its increasing

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Marketing in the firms conception

• Sale conception
• the firm has the effort to persuade the customers
  with all ways to purchase the products
• Marketing conception
• the firm has the effort to deliver only the
  desired products, so the firm concentrates on the
  monitoring of demand for particular products and
  tries to adapt the production to the market
  needs.
• this is possible only in the case of very
  adaptable firm and firms production
• Humane conception
• this conception besides the other previous
  aspects includes also the personal needs and the
  long term needs of the society

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Marketing in the firms strategy

• The marketing strategy
• The marketing strategy expresses mainly the
  particular ways of the successful development of
  the firm
• The marketing strategy involves following fields
• Intensive growth
• the firm wants to achieve higher use of
  intra-plant reserves of the firm for the
  assurance of desired position on the market
• Integrating growth
• includes the integrating of the firm with others
  commercial subjects. This integrating can be
• backward (the firm integrates with the providers)
• feedforward (the firm integrates with the
  customers)
• horizontal (the firm integrates with other
  producers)

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Marketing in the firms strategy

• Complex growth
• is connected with the assurance of particular
  deliveries and the production with own sources.
• (The production is extended about the activities
  that were in advance delivered by suppliers. This
  extension could bring lower costs connected with
  the assurance of these needed deliveries.)
• Diversion growth
• this strategy is connected with the extension of
  the production about next kinds of products,
  services etc.
• the firm offers wider range of the products,
  services etc.

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The marketing of the surroundings

• The marketing of the surroundings of the firm
  includes
• Finding out of the information about the
  competition.
• The firm has to monitor
• The current competition
• prices, the amount of produced goods, the
  technological ways of goods or services
  elaboration, the demand for their production etc.
• Possible new competition
• potential rivals in enterprise and their
  possibilities to enter our market
• Substitutive products
• firms that are able to produce the goods that can
  substitute our products in the consumption

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The marketing of the surroundings

• The market research.
• The market research should give the answer to
  the following questions
• Who creates the market, what market subject we
  can find on the market, who creates our
  competition?
• What the market applies, what products,
  deliveries and services are asked? It is good to
  find out the products or services with the
  highest demand that means what kind of products
  we should produce to achieve the highest returns
• Who buys on the market? (information about
  customers, why customers buy)
• Information about the market it is possible to
  obtain from
• Own information obtained with the distribution
  and sale
• The information obtained from the questionnaire
  research asking for the market needs

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The marketing mix

• The marketing mix involves these tools
• Product
• monitoring of the quality of the product, the
  technical level, guarantees, necessary
  maintenance, service etc., the choice of the
  production with the highest demand
• Market logistic
• ensures the optimal location of the production,
  the optimal choice of our suppliers and the
  providers (with regard to the distance to the
  productive place and their reliability and
  responsibility), the optimal location of the
  stores, the stores quantity and the sales
  channels.
• Sale price
• The products price is very important area
  connected with the product, the price assigned
  according to the
• costs and supposed profit connected with the
  certain products elaboration (the price should
  cover the costs connected with the goods
  production)
• situation on the market (the price of products
  should be able to compete to the other products
  on the market)
• Promotion
• to give information about the product to
  customers, about the product price, about product
  quality, about the advantages connected with our
  products.
• (This can be done with the help of the suitable
  advertising, in the case of industrial production
  we can use the personal sale etc.)

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Public relation

• Besides the quality and the quantity of
  production and the prices of the products the
  firm is also judged according to the
• relation to the environment,
• relation to the employees,
• relation to the rate of support to the charitable
  establishment etc.
• The firm that doesnt fill these conceptions has
  wrong image. Good image of the firm is usually
  appreciated by
• providers
• customers
• employees
• The main objective of the public relation its to
  increase image of firm
• the drive for the good relation with the media
• regular information about the firm to the public
  in the form of the news, conferences, the reports
  of the firms economy, etc.
• access of the firm to the public
• financial support of the public matters