SUMMARY
We know that currently there are millions of companies around the world that carry out numerous exchanges of goods and services and all at some point in our lives have been part of them, that is why through this document, we will mention how and where the need to generate sales in human history and then look for the "relationship and importance between sales and the management of a company. "
We will address aspects related to marketing and the stages of the administrative process as well as aspects related to the consumer and their behavior.
IMPORTANCE OF SALES IN THE ADMINISTRATION
Introduction
In this essay we intend to show the importance of the concept of sales in administration. The administration since ancient times has been involved in people's lives so people will not notice it. Currently continues to play a prominent role in different areas of life, including in the business sector. This is when sales activities and tasks are combined with the administrative process.
In the first part of this essay, we will present how sales have evolved from ancient times to modern times. The official start of sales and the impulse that led the industry and companies to put an effort into sales activities is considered. The benefits that companies obtain when generating and developing sales activities are also defined in a general way.
For the second part, marketing is identified as a tool that goes hand in hand with sales as it helps to achieve business objectives. To demonstrate this relationship, the marketing process and the profit obtained in the sales area are shown. In the same way , some of the marketing activities that refer to the sales objective are mentioned. On the other hand, reference is made to the tools that are involved in marketing that is, the elements of the marketing mix. Their presence in marketing plans and the relationship that marketing generates with customers.
Finally, in the third part, we will look for the way in which sales in the company are related to administration by relating the stages of the administrative process.
Background
Within this essay it will be necessary to use the following definitions to better understand the subject, so we have to “… marketing is the activity, the set of institutions and the processes to create, communicate, deliver and exchange offers that have value for customers, partners and society in general ". (Lamb, Hair, JR, & McDaniel, 2011) We agree with these authors, as it is a simple and clear definition.
Another required definition is income, which is defined as: “… increases in the equity corresponding to a company during a certain period of time” (Tarodo Pisonero & Sánchez Estrella, 2012)
We have decided that this is a definition according to the topic because the authors express the meaning of the term in a precise way. Similarly, the concept of sales is defined as:
“… The act of convincing a person regarding the qualities, characteristics, benefits and benefits of a product or service; in such a way that that person agrees to make a voluntary delivery of a certain amount of money; with the objective of achieving the possession, use or consumption of said product or service, and thus also affect the satisfaction of needs that the seller and the company have. " (De la Parra & Madero, 2003)
We believe that this definition shows us the complete concept of what selling involves, at the same time it allows us to see the relationship that exists between income and the action of selling.
Finally, we present the concept of administration, which is "the process of planning, organizing, directing and controlling the use of resources to achieve organizational objectives" (Chiavenato, 2004)
With the aforementioned definition we can clearly identify that the administration is an essential part in sales as well as the department that bears the same name in companies.
Development
Sales throughout human history have been present, although they have not always been explicitly demonstrated but since ancient times they have been captured in different ways. During prehistory, the human being simply subsisted. Gathering, fishing, and hunting were their main source of food. He did not know the art and technique of agricultural production. There seems to have been no commercial exchange during this time, due to the distance between the different human groups. The low density of human population, in turn, did not promote such activity.
Later, as the human race began to spread, various social conglomerates were formed, this led to the development of various economic activities, which eventually generated a production surplus. As this surplus exists and needs other products, man finds himself in the need to obtain a variety of products and for this he creates barter or barter. The problem here was finding candidates or people who will be interested in exchanging products. With this need for a much more useful medium, the currency was born and in this way the commercialization process between different people and companies began.
However, during the first half of the 20th century, with the effects of the wars and the Great Depression, “… businessmen discovered a very unpleasant reality. Their once-prosperous and plentiful markets had disappeared. " (Mejía, 2010). It was then that the sales trade was born. Entrepreneurs at that time found it necessary to hire people who would be in charge of visiting their entire market, all their potential customers and promoting their products. The objective of the people they hired was to sell as they could, since they had not previously required a special sales force, but with the external factors that surrounded the companies and industries at that time, the situation became complicated.In addition, by then the markets were “… already quite invaded with alternative products, they became even more saturated. Fierce competition is born, both national and international. The Japanese phenomenon arises, manufacturing low-cost and acceptable quality goods, who, by surprisingly improving their industrial and commercial quality level, place their products among the most prestigious worldwide. " (Mejía, 2010)
From the above we can realize that in such a competitive environment, companies need sales to improve their position in the market. In addition, it can be seen that sales are the engine or the heart of companies. The success of companies is not only based on the development of a wonderful and innovative product or service, but is also due to a clear orientation to the market from the start of the business. For this, it must be identified " … what are the true needs of the market, its purchasing processes and people or companies involved in it." (Gómara, 2015)
In any business organization, the sales department is the one that generates the revenue. No matter how good the production department is, how high-tech you have, how tight the financial goals are, or how forward-thinking and forward-thinking your management techniques are, there must be a sales mechanism in place or everything else will be useless. This is because to be able to pay payroll, suppliers and other expenses and services so that the company keeps working, money is required. No company would survive without sales.
Marketing
As we well know, a company, even if it has different activities and responsibilities, will always have one main purpose and this is: to generate income. Marketing is considered an important tool to achieve this income through sales and is possibly the activity that a business should pay the most attention to. Thanks to marketing activities, recognition and sales achieved by a company are achieved and this determines the level of profitability.
Basically, if you are applying a proper marketing strategy in the business, it will generate profits and if you are not doing it it could be detrimental to the entrepreneur and the future of the company. In itself, marketing is that work that directs the consumer to generate the sale. To understand the relationship between marketing and sales, the following is the marketing process:
The marketing process is made up of five steps:
- Understand the market and customer needs and wants Design a customer-driven marketing strategy Create a marketing program that delivers superior value Create profitable relationships and customer delight Capture customer value to create customer quality and profit. " (Kotler & Armstrong, 2008)
According to the marketing process outlined above, we can observe that during the first four steps, the companies that apply it begin to work to understand consumers taking into account their needs, desires and demands. At the same time they create value for the customer in order to be quickly identified and be the number one option for potential customers. It seeks to establish an environment in which the customer can feel attracted to the products or services offered by the company.
In exchange for all the activities mentioned above, a result is obtained "… by creating value for consumers, they obtain value from consumers in the areas of sales, profits and long-term customer value." (Kotler & Armstrong, 2008)
Therefore, marketing works as an area of study in which it seeks to analyze the different needs of potential customers to be able to market a product, obtain profits from it, or simply seek that it is disseminated in the best possible way, relating this practice to the publicity of the same.
Within marketing we find various activities that are carried out to boost sales: from advertising to public relations, promotions and sales. Marketing combines all these fields to show and get your product or service to your potential customers. If the channels are not used in the correct way, potential customers have no way to know the product or service that the company offers.
The challenge for many companies today is that they tend to go through critical moments or in some more serious cases end up failing because their sales fall due to lack of investment in marketing. This is why companies must implement a marketing plan that involves the various aspects involved within "… the marketing mix: a set of tools that work together to meet customer needs and create customer relationships" (Kotler & Armstrong, 2008).
When we talk about these tools we refer to the product, price, place and promotion. Apart from generating profits for the company, the development of these points provides that real and potential clients feel familiar with the company, that they know it better and inspire confidence.
As the market learns about the various marketing campaigns the company runs, the public is likely to become more interested in what it has to offer. It is intended that the market has the company located when a need or desire arises. If the company manages to generate more trust, the result will usually be increased sales.
At the same time, the application of marketing in the company would compete with other entrepreneurs so that consumers have a variety of options and can choose the product or service that most attracts them. This can be of great advantage to those who use marketing as a better product can be presented and a smart way to sell in the market. It is precisely this, what is known as "… healthy competition." (Mikoluk, 2013)
Relationship between sales and administration
We can define administration as the channeling or direction of all the efforts of a group or work team towards a particular objective, involving elements such as planning, organization, direction and control. Starting from this definition, we can argue that these administrative elements apply in the same way in the sales area.
Sales administration seeks to facilitate marketing, keeping customers, operations and suppliers up to date. That is why to see the existing relationship below, we will talk in a general way about aspects involved in the elements mentioned at the beginning.
Within the planning we find that “… the entire action program is covered…” (Mercado Hernández, 2011), that is, it is the moment in which what is going to be done and how far you want to go within the area is proposed of sales, that is why it is said that at this stage objectives, principles, policies, mission, vision, and more factors are established that will help to achieve the action program.
Also in the planning stage is where the needs that the company is going through are defined and, accordingly, methods are created to overcome those needs. For example, sales budgets could be determined, as well as sales statistics, forecasts, objectives, goals, among other aspects that are reflected as plans and that in another stage will be put into operation.
The organization refers to that grouping of the activities necessary to carry out the plans (mission, vision, goals, purposes, objectives, budgets, etc.) and define the way in which the sales force will relate to those activities. At this stage, the sales manager seeks to determine what are the tasks that salespeople should perform according to their abilities and who is best qualified to carry them out. "An efficient organization that makes full use of its men, its means to sell, with training programs and others, will help you and your collaborators to achieve their goals…" (Mercado Hernández, 2011)
The next stage of management in sales is leadership. Many may say that it is simply a matter of giving orders and monitoring that the sellers are actually doing their job: selling. However, this stage contains more than that, especially in the sales area that is the engine of a company, since it depends on whether or not the company obtains income and profits. It is about making those who are under the command of the sales manager, execute the tasks assigned for it, three steps are proposed:
“The first step will be to determine what you expect from your sales team; then check at regular intervals how the operations are progressing, finally, structure the methods that will help your collaborators to get the most out of their task. " (Mercado Hernández, 2011).
To achieve this, you must influence salespeople through leadership. Those who succeed in managing sales are because they have been able to earn the trust of the sales force. Knowing how to motivate staff and induce them to action is essential.
Finally we have the control stage in which it is intended to observe and measure that the planned activities have been executed according to the objectivesand goals stipulated in the first stage. We know that nothing is perfect, there will always be a margin of error, and to prevent this from being bigger it will be necessary to modify the plans if they have come out; corrective actions are required to meet sales objectives. It is here where a manager of this important area of the company must be aware and anticipate any change in the market, innovate and develop new plans as well as determine the appropriate time to implement the plan and the strategies that have been defined and remain in the option that brings you the most advantage. Of course you must have the humility to determine where you have failed.
Conclusions
Sales throughout human history have been part of life, everyone at some point requires acquiring different products or services. But this not only remains in the personal aspect but also has an influence on the life of companies. The need has arisen to integrate an area in business that is dedicated to the commercialization of its products or services, this is because sales represent the heart of organizations. The success of companies does not only lie in how good the product can be, but also in the orientation to the market from the beginning of the business.
All people require money to support themselves and live well and it is not the exception in companies, it is even much more important that sales are generated and consequently income because they are the source of employment and subsistence for workers. We can also realize that the objective of a company is to generate profits and to obtain them it is necessary to sell. After this objective, the different expenses to be paid are derived, such as payroll, suppliers, water, electricity, etc.
Just as a carpenter requires tools to transform wood into attractive furniture, in order to generate the income that companies require, it is necessary to rely on tools and one of them is marketing. Marketing fulfills the function of directing the consumer to the acquisition of products or services. Mainly to achieve this, it is necessary for companies to focus on the needs, wants and demand of the customer. In marketing we find different activities that help to achieve the objective of attracting the consumer, some of them are advertising and public relations. However, to determine that the desired sales are achieved, through a marketing plan the strategies to continue can be established based on the famous 4 P's: Product, Price, Place, and Promotion.
Similarly, to conclude the trial, it was possible to explain that the administration works in conjunction with sales since the administrative process is also applied in this area. Planning is related to sales by defining sales objectives, the organization by choosing the right person in the right activity, direction is applied by exerting a positive influence on salespeople through leadership in order to correctly execute all the activities that have been proposed in the planning stage and finally the control is related to sales when it is taken into account that everything has a margin of error and therefore who is in charge of the sales area of a company anticipates and analyzes the results of the sales operation and together with that measurement makes corrective decisions to adhere to the sales objectives.
References
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