commercial management, Apuntes de Administración de Empresas

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PART 1: INTRODUCTION TO

COMMERCIAL MANAGEMENT

COMMERCIAL MANAGEMENT

Chapter 1: Commercial Management Today

Cmmercial Management Today

1.1 Introduction 1.2 Concepts and implications 1.3 Main responsabilities 1.4 Relationships with other areas 1.5 Actual and future challenges

“THE COMMERCIAL ACTIVITY IS TOO

IMPORTANT FOR THE COMPANY TO

LEAVE ITS ENTIRE RESPONSABILITY

ONLY ON THE SALES FORCE HANDS”

1.1 Introduction

(Peter Drucker)

 “ COMMERCIAL MANAGEMENT NEEDS TO BE TAKEN SERIOUSLY AND IT SHOULD BE CARRIED OUT BY EXPERTS AND COMPETENT PROFESSIONALS”.  IT IS A CRUCIAL ACTIVITY FOR ANY COMPANY, THEREFORE THEY CANNNOT AFFORD ANY RISKS ASSOCIATED TO THE MANAGERS RESPONSIBLE FOR THE AREA”  COMMERCIAL MANAGEMENT SHOULD BE DESIGNED, CARRIED AOUT AND CONTROLLED IN AN ORGANIZED AND PROFESSIONAL WAY.  “IT SHOULD BE THE “CAUSE” OF ALL THE PREPARATION AND PLANNING, MORE THAN SOMETHING OCURRING BY CHANCE”

1.1 Introduction

Commercial Management´s basic pilars

 Profitable sale process:

 The commercial management team studies and implements the necessary tools in order to make the sale in the most profitable and benefitial way.

 Cover every process:

 Its management must include all the processes and resources that take part in the sales activity.

 Organize and Coordinate the Commercial activity:

 Organizes the sales force activity and coordinates it with all the areas that parcipate before, during or after the sale is done

1.2 Concept

Identification of the different customer´s purchase

potential

Development of the sales forecast and Commercial

Plans (Sales) in concordance with the Marketing

Management (Marketing Plans)

 Objectives and Commercial Strategies planning

 To analyze and develop the methodology to include in

the “sales manual”

WHAT DOES COMMERCIAL MANAGEMENT INVOLVE?

1.2 Concept

ACTUAL COMMERCIAL MANAGEMENT RESPONSABILITIES

RESPONSABILITIES SCOPE EMPLOYEES

• Identification of their needs
• Selection
• Training and Professional Programs
• Payment policy and Incentives
• Sales force Motivation and Encouragement
• Evaluation and follow-up

1.3 Main responsabilities

OBJETIVES

• Development of the anual sales budget by area, type of client, team, channel …
• Development and evaluation of the Commercial Goals
• Development of the Commercial Management expense budget

RESPONSABILITY SCOPE SALES

• Pricing policy and Commercial conditions establishment
• Large accounts sale managament
• Sales force “ coaching ”
• Maintainance of a continous relationship with customers and establishment of the necesaary management systems and tools, to know the relevant information and how to treat it

1.3 Main Responsabilities

ACTUAL COMMERCIAL MANAGEMENT RESPONSABILITIES

Basically THE COMMERCIAL POLICY

ANUAL SALES AND PROFIT OBJECTIVES

• It will provide the sales objective in a detailed and calendared basis following the organizational criteria COMMERCIAL CONDITIONS
• Payment method, shipment, delivery time, rappels, discounts , … COMMERCIAL REMUNERATION POLICY
• Salaries, Incentives, Commisions , …… that apply for the internal and external sales force teams GENERAL MANAGEMENT ASSITANCE
• General and Marketing Management advice regarding the Market information in order to establish the organization´s policies and plans

1.3 Main Responsabilities

The customer must be the core of the company

FINANCE EMPLOYEES PRODUCTION COMMERCIAL (^) Client MARKETING

1.4 Relationship with other areas

Commercial M.: the company´s eyes and ears in the market

1.4 Relationship with other areas

1.- Who has more power?

2.- Long versus short term

3.- New tendencies

4.- Office/ street – Theory/ real life

5.- What are and whoose are the customers?

6.- Marketing Plan: TOP SECRET

7.- Mistrust – Lack of relationship/ communication

Who pays the bills?

RELATIONSHIP BETWEEN MARKETING AND COMMERCIAL MANAGEMENT

1.4 Relationship with other areas

Stage 1: Simple Sales Department GENERAL MANAGER COMMERCIAL MANAGER SALES FORCE

RELATIONSHIP BETWEEN MARKETING AND COMMERCIAL

MANAGEMENT

1.4 Relationship with other areas

Stage 3: Independent Marketing Department GENERAL MANAGER COMMERCIAL MANAGER SALES FORCE (^) MARKETING ACTIVITIES

MARKETING MANAGER

RELATIONSHIP BETWEEN MARKETING AND COMMERCIAL

MANAGEMENT

1.4 Relationship with other areas

Stage 5: General Commercial or Marketing Manager GENERAL MANAGER COMMERCIAL MANAGER SALES FORCE (^) MARKETING ACTIVITIES

MARKETING MANAGER

GENERAL COMMERCIAL OR MARKETING MANAGER

RELATIONSHIP BETWEEN MARKETING AND COMMERCIAL

MANAGEMENT