The main purpose of the existence of the enterprise is to profit from a certain type of activity. Moreover, the sale of goods has a significant impact on the level of profitability of products and indicators of financial stability.
Product sales planning
To effectively conduct business, a study is made of existing demand and market share held by competitors, after which the company plans the number of manufactured products intended for sale. In this case, the sale of goods plays the role of a link between the buyer and seller. Planning takes into account current resources and the acceptable cost limit, focusing on the target market segment. The more manufactured goods that the breakeven point of an enterprise can cover, the higher the supply level at which a significant number of customers can be covered in one production cycle. There are four main factors by which the sale of goods is planned; they are referred to in marketing as the “four pi” concept:
- Goods - products that can satisfy the needs of the buyer at a high level, and therefore is relevant in the market.
- 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 pricing policy due to the specifics of legislation and taxation. Therefore, each multinational company has a unique strategy of penetration into each country, taking into account all social and economic features.
- Promotion - all kinds of promotions, advertising and PR campaigns, stimulation of 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 the growth of the occupied part of the market.
- Place - a factor that determines the relationship between seller and buyer, it also includes distribution channels, which 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 contracts concluded, as well as the efficiency of the location of warehouses where products are stored.In the case of retail, the best locations are shopping areas of the city and crowded areas.
Sale of goods as a way to reduce the risks of doing business
In conditions of free competition, the orientation of the company to a wide field of distribution of products increases the level of risk at which large losses may occur up to the point of bankruptcy. In this case, the affected company is forced to leave the market. This can be both internal malfunctions in the form of defective goods, or 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 to overcome the prevailing difficulties in modern conditions.