Effective management of the sales department of the enterprise.
Forecast revenue from sales of products for the item position is equal to the product of the forecast of the average consumer demand for the company’s products and the plan price of sales of products.
The production plan (purchase of goods) and its sales plan is set equal to the forecast of average consumer demand for products.
The production plan (purchase of goods) and its sales is a consequence of the forecast of the average consumer demand for the company’s products when the company uses the market approach to planning its business activities. The plan for sales of products should be equated to an accurate forecast of consumer demand for the company’s products, since in order to ensure competitiveness, an enterprise must be customer-oriented, and a customer-oriented enterprise must fully meet the needs of the target consumer in terms of quantity of products. Consumer demand for products under market conditions is a random variable, the instantaneous value of which for the future period of activity is impossible to predict or predict with 100% probability (accuracy). Therefore, we can talk only about increasing the reliability (accuracy) of the forecast or reducing the forecast errors.
To obtain a mathematical relationship describing consumer demand behavior for products in a future period, it is necessary to have reliable statistics on demand values and factors influencing it in a certain number of periods of the past and apply one of mathematical forecasting methods to it depending on the required forecast quality. The quality of the forecast is understood as the reliability of the forecast (a combination of the size and limits of the confidence interval for a random variable and the probability of getting into it) or the value of relative and absolute forecast errors. The consumer demand model for products should contain as one of its factors the unit price, which will make it possible to correctly use the statistical relationship between product demand and unit price when forecasting consumer demand for products.
You can study mathematical methods for accurately forecasting consumer demand for products by training on the “How to” production forecasting, demand and sales training module of “Business Consulting Igor Chugunov” on a regular schedule. You can familiarize yourself with the program of this module at www.consulting-chii.com.ua, which also describes the conditions of participation in the training module, dates and venue, feedback from participants on the quality of training. “Igor Chugunov’s Business Consulting” also provides a service for purchasing a study guide for this training module and any other without visiting or following a module. The content of this service is described in detail in the “Purchase a service” section of the site www.consulting-chii.com.ua.
The price plan for the sale of a unit of production must be a reasonable marketing decision of the enterprise, corresponding to the chosen pricing objectives, a reasonably chosen pricing strategy, a reasonably chosen pricing method and tactical methods of price adjustment in the market. The price corresponding to these factors is stable and unchanging due to random fluctuations in the market situation. That is the price that is determined by the “How to” technology for effective marketing pricing.
You can study the technology of effective marketing pricing “How to”, having completed the training on the module “Technology of effective marketing pricing“ How to ”. As a result of the training, you will be able to carry out the procedure for developing an effective “How to” marketing pricing for your company’s situation and, if necessary, adjust the current pricing system in order to reduce errors in it and increase its efficiency, i.e. contribution to the net profit of the enterprise. Knowledge of the content of the “How to” marketing pricing procedure will allow you to assess the quality of the company’s existing procedure and prices, and discover new opportunities to increase revenue from product sales at the expense of price or leave existing pricing alone and focus on other opportunities to increase net profit and positive net cash flow enterprises. Confidence in the correct pricing will protect this area of marketing management from unnecessary changes and will encourage senior managers to search for other significant opportunities to increase enterprise efficiency at the expense of other marketing areas, as well as logistics, production, financial management and personnel management.