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Sales Management and Sales Communication of SMEs
Brief Summary
The research conducted by Havlicek & Roubal (2013) concerns the specificity of the sales management and communication of small and medium enterprises (SMEs). Particularly, the scholars aimed to distinguish between the marketing and sales management, claiming that in some instances, these two functions are fulfilled by the same staff members in the company. However, Havlicek & Roubal (2013) insisted that sales management and sales controlling have to be separated from the marketing due to the difference of these functions. The article implied that the process of sales management follows a specific set of milestones and has to follow particular rules in order to maintain productive communication with the clients, increase sales, and calculate the risks. For conceptualizing the process of sales management within the SMEs, the researchers implemented the M-C model identified as the Management Control System (Havlicek & Roubal, 2013). By following this theoretical framework, the article provides the insight into the sales management and communication process in SMEs.
Overall, the researchers analyzed the process of preparation of the sales plan, controlling, monitoring the customers, forecast management, and trade receivables maintenance. According to the article, SMEs have to consider each step in successful sales management and communication. The main conclusion the scholars drew implied that sales plans have to be accompanied with controlling and systematic work with the key clients as well as locations and suppliers to prevent the risks and minimize the expenditures. The research insists that the main focus of the sales management has to be directed to the long-term relationship with the loyal customers. However, the risk management has to be applied as well due to the highly competitive environment and ongoing globalization that makes the long-term predictions difficult.
Implications
The analysis of the article points to the necessity of changing the approach to sales management. The business environment has altered dramatically since the development of technologies and intensified globalization. The companies nowadays have to pay more attention to the satisfaction of customers because of the severe competition on the market. The research takes into account the modern realities of the business environment by advising to combine the sales management to the communication with the clients and risk management strategies. The article raises an important point by claiming that the companies have to concentrate their attention on the key customers by monitoring them and trying to meet their expectations. However, the article does not mention the possibility to attract more consumers and to expand its target population.
It is true that SMEs have to participate in the tough competition with the large multinationals and some markets are prone to monopoly. However, as the business environment is changing, the smaller businesses have to design new strategies for attracting new clients. This is the case when the sales management and marketing may work together to create a plan that will consider the option to increase the consumer base. Also, the researchers discuss the long-term sales plans and the methods of conducting it emphasizing that it is essential today to elaborate long-term plans for avoiding the risks in future. At the same time, it is important to note that long-term planning is not always the best solution. First of all, as it was mentioned earlier, the business environment is particularly unstable today for creating successful long-term plans. Secondly, orientation to such plans may affect the ability of the management to take into account the force majeure and unpredictable incidents that will eventually have an impact on the sales management.
The research has a bearing on the promotion of the products, as the researchers assessed the ways of communicating with clients, satisfaction of the customers, and monitoring the customers and the markets. The study argues that the M-C model allows the managers to control the sales and to elaborate long-term sales plans that have to include the risk management and communication with the clients. The article implies that the modern SMEs have to orient to the long-term relationship, yet will be ready to create realistic risk assessments for being able to remain successful in the business environment. The article does not concern the price and placement of the products, as the major focus of the research is on the ways to secure the position of SMEs in the market, which, according to the article, is possible through long-term risk management and planning.
It is possible to conclude that the study managed to highlight a solution to the current challenge the SMEs encountered with, namely high competition and globalization. However, the modern realities require the firms to be more flexible and adjustable to the constantly altering environment, which demands the companies to focus on short-term problems. It is hard to calculate the long-term risks and focus only on the loyal customers. The company has to increase the sales and expand, which is the essential demand of the business. For this purpose, the firm will have to adjust its sales management strategy in order to be ready to alter it according to new trends.
Joint Decision-Making about New Sales Practices in Management Group Meeting Interaction
Brief Summary
Peltola (2013) has designed a study that deals with the emerging problem of the necessity to correspond the sales strategy between the corporate entrepreneurs and the firm. The article concerns the same problem of change in the business environment and the need to maintain the entrepreneurial sales practices and the sales strategy of the entire company. It was emphasized by the researcher that the companies today are forced to boost their entrepreneurial potential, yet there are few studies exploring the changes in sales strategy for the companies that employ corporate entrepreneurship. Peltola (2013) evaluates a case study of a Finnish firm that uses corporate entrepreneurship within its company and deals with the everyday challenges that require compliance its sales management with the entire enterprise. The analysis of the case study produced the conclusion that collaborative decision-making and joint strategy in sales management is the most effective way for the companies to apply the practices of corporate entrepreneurship and follow an effective sales plan.
Implications
The study emphasized a burning issue that puzzles a lot of companies nowadays. Corporate entrepreneurship is a relatively new way for the forms to deal with the modern trends of the business environment. When the company uses this method, the sales strategy has to be revisited and adjusted to the main corporate goals. At the same time, there are few propositions of how to achieve these aims. Therefore, the businesses nowadays may overlook a certain problem or threat to its sales when the company implements the practices of the corporate entrepreneurship. The article creates an important conversation suggesting the companies to employ joint decisions on the sales management and involve all key players responsible for this sector in the company. According to the researcher, “access, agreement and commitment” are the key variables of success in communication between the sales management department of the company and the corporate entrepreneurs (Peltola, 2013, p. 51). The research underlines that the sales management is impossible without the effective communication inside the company and evaluation of all point of views.
Also, the study makes an important point by claiming that the sales management has to consider the previous complaints about the products or service in order to make necessary improvements through corporate entrepreneurship. According to the study, the previous flaws in sales management can be resolved with the entrepreneurship within the company. It has to be noted that the sales management is reviewed here as one of the motivational factors for the company to elaborate corporate entrepreneurship strategy. The research generated the results suggesting that the firm using this practice can improve the sales strategy by creating a brainstorming group and incorporate joint decision practices. At the same time, the researcher did not specify how to reach an agreement between the sales management team and the corporate entrepreneurs.
In the case when there is a company within a larger firm, the sales strategy has to comply with the one approved by the host company. In this case, even if the entrepreneurial ideas do not correspond to the entire vision of the venture, all parties involved have to collaborate to produce a sales plan that will not interfere with everyone involved. The research showed that the Finnish sales managers, executives, and corporate entrepreneurs elaborated a joint sales plan and the set of decision that will help all parties to proceed with its strategy. However, the resolution will be applicable only for the smaller companies where the sales plan is not substantial. In the case of large multinationals, the firms may have to revisit their sales strategy and create a multifaceted plan for both the entire enterprise and the entrepreneurs.
The study does not concern the marketing mix variables, as it deals with the communication and corporate decisions regarding the sales plans and risk management rather than the product, price, placement, or promotion. Yet, the research is relevant for the modern business, as it investigates the gap in research regarding the sales strategy in the companies with the developed corporate entrepreneurship. Usually, this strategy is used in the large ventures that have the ability to create the conditions for the development of the entrepreneurship that points to the need for adjustment of the sales plans.
References
Havlicek, K., & Roubal, O. (2013). Sales Management and Sales Communication of SMEs. European Research Studies, 16(4), 29-36.
Peltola, S. (2013). The Emergence of Entrepreneurship in Organizations: Joint Decision-Making about New Sales Practices in Management Group Meeting Interaction. The Poznan University of Economics Review, 13(1), 48-54.
