Product sale

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The main purpose of the existence of the enterprise is to make a profit from a certain type of activity. At the same time, the sale of goods has a significant impact on the level of profitability of products and indicators of financial stability.

Product sales planning

For efficient business conduct, a study of existing demand and market share by competitors is carried out, after which the company plans the number of products intended for sale. In this case, the sale of goods plays the role of a link between the buyer and the seller. Planning takes place taking into account current resources and the allowable cost limit, focusing on the target market segment. The more goods produced can be covered by the enterprise's break-even point, the higher will be the supply level at which a significant number of buyers can be covered in one production cycle. There are four main factors by which the sale of goods is planned, they are called in marketing the concept of "four pi":

1. Product - products that can satisfythe needs of the buyer at a high level, and therefore is relevant to the market.
2. Price is a factor that should ensure the competitiveness of the enterprise and at the same time justify the cost of manufacturing products. The sale of customs goods largely depends on the pricing policy due to the peculiarities of legislation and taxation. Therefore, each multinational company draws up a unique strategy for penetrating into each country, taking into account all social and economic features.
3. Promotion - all kinds of promotions, advertising and PR campaigns, stimulating everyday life, etc. At any stage of the product life cycle, the sale of goods must be accompanied by marketing activities to maintain the competitiveness of the enterprise and increase the occupied part of the market.

4. Location is a factor that determines the relationship between the seller and the buyer, it also includes distribution channels that depend on the type of trade in the enterprise. Accounting for the sale of goods in wholesale trade is based on an analysis of the effectiveness of concluded contracts, as well as the efficiency of locating warehouses where products are stored.

   

5. In the case of retail, shopping areas of the city and crowded areas are considered to be the best locations.

Product sales as a way to reduce business risks

In the conditions of free competition, the orientation of the firm to a wide field of distribution of products increases the level of risk at which largelosses up to and including bankruptcy. In this case, the affected enterprise is forced to leave the market. These can be both internal problems in the form of defective goods, and the influence of an unstable political situation in the country, which will negatively affect the desire of buyers to purchase goods. The solution to such problems can be an effective implementation program that will help overcome the existing difficulties in modern conditions.