Distribution, sale, marketing 17.4.2019

The main idea of the productive process Equipment Labour Material Combination and consumption of the basic productive factors in order to produce Basic productive factors Productive process Firm’s performance The result of the firm’s production in the form of goods, services and work's delivery The evaluation of the performance Other firm’s activities what make possible to evaluate the production (sale, transport etc.) Profit 17.4.2019 Distribution, sale, marketing

Distribution, sale, marketing The main objective of distribution, sale and marketing: To encourage the most important objective of the firm – the sale of the product Basic problems: Before starting of the production it is necessary to obtain the information about the market needs what kind of products will be produced what amount of products will be produced what way of production will be used which business partners will be asked for co-operation (decisions about sub-suppliers) To sell the product after its finishing – how to get the product to customers 17.4.2019 Distribution, sale, marketing

The sale and the distribution an act of the exchange, to that happen on the market at the sale the seller obliges to transfer the property right to use for the buyer and the buyer obliges to pay the purchase price The sale is directed with: The valid legislation (business code, exchange code, other regulations) The social and ethic standards The distribution: ensures the offer and sale of produced goods or services The firm’s run is assured with the constantly repeating process of the creation and the evaluation of the firm’s performance The performance creation: is connected with the buying of the basic productive factors and their reprocessing into the form of goods or services The evaluation of the firm’s performance: is connected with the searching of the customers and the physical distribution of goods and the providing of deliveries and services to the customer 17.4.2019 Distribution, sale, marketing

The evaluation of the firm’s performance Evaluation can be expressed with the following scheme called the closed value cycle: Money  productive factors  productive process  products and services  evaluation  money 17.4.2019 Distribution, sale, marketing

The sale and the distribution The basic activities of the sale and the distribution The elaboration of strategy and the plan of the way of distribution and sale. This elaboration comes from the structure of the productive programs and the form and type of the production The analysis of the sale and the management of the costs connected with the sale Receipt of orders and the orders’ management The contact with the customers The physical distribution (this physical distribution is usually not connected with the building production) The management of the stores of the final products and their storing (except the building production, because in the case of the building production the storing of final production is not actual) The packing (this activity is not connected with the building production as well) 17.4.2019 Distribution, sale, marketing

The sale and the distribution The costs of sale For the needs of monitoring and management these costs could be classified according to the following aspects: According to the purpose – the cots connected with transport, service, advertising and promotion, storing of final products, demand on customers According to the kinds – the costs in the structure of material costs, wage costs, costs for the services of the non-material character (phone, post, accommodation), others more closely unspecified costs 17.4.2019 Distribution, sale, marketing

Distribution, sale, marketing The activity connected with the communication between the firm and the market (or the situation on the market) necessary for detection of market needs and their satisfaction The marketing in the firm is connected especially with following activities: The detection of market needs Implementation of the production according to the detected needs The choice of suitable providers of material and the services for this production The marketing we can divide into two areas: Marketing in the firm Marketing of the firm’s surrounding 17.4.2019 Distribution, sale, marketing

Distribution, sale, marketing Marketing in the firm The marketing in the firm is applied in: In the organisation structures In the firm’s conception In the firm’s strategy 17.4.2019 Distribution, sale, marketing

Marketing in organisation structures The relation between the marketing and the organisation structure in the firm: it is necessary to create certain organisation structure in the firm that is corresponding to the needs of marketing it is good to establish particular firm’s organs with corresponding authorities and responsibility for the strategic leadership of the firm that are able to: monitor the market in the longer time horizon, predict or forecast the expected market development provide relevant information to the firm’s management 17.4.2019 Distribution, sale, marketing

Marketing in the firm’s conception Marketing conception: supposed way or plan, how to sell production best and most efficiently and how to make customers to prefer this products before the products of our competition Possible conceptions: Productive conception: tries to keep low production costs and low sale prices the presumption of this conception is the fact that the customers know the quality of the provider and of the competition as well we talk about the price competition Product conception: the firm has the effort to keep the price of production and to compete in the product’s or delivery’s quality and its increasing 17.4.2019 Distribution, sale, marketing

Marketing in the firm’s conception Sale conception: the firm has the effort to persuade the customers with all ways to purchase the products Marketing conception: the firm has the effort to deliver only the desired products, so the firm concentrates on the monitoring of demand for particular products and tries to adapt the production to the market needs. this is possible only in the case of very adaptable firm and firm’s production Humane conception: this conception besides the other previous aspects includes also the personal needs and the long term needs of the society 17.4.2019 Distribution, sale, marketing

Marketing in the firm’s strategy The marketing strategy The marketing strategy expresses mainly the particular ways of the successful development of the firm The marketing strategy involves following fields: Intensive growth: the firm wants to achieve higher use of intra-plant reserves of the firm for the assurance of desired position on the market Integrating growth: includes the integrating of the firm with others commercial subjects. This integrating can be: backward (the firm integrates with the providers) feedforward (the firm integrates with the customers) horizontal (the firm integrates with other producers) 17.4.2019 Distribution, sale, marketing

Marketing in the firm’s strategy Complex growth: is connected with the assurance of particular deliveries and the production with own sources. (The production is extended about the activities that were in advance delivered by suppliers. This extension could bring lower costs connected with the assurance of these needed deliveries.) Diversion growth: this strategy is connected with the extension of the production about next kinds of products, services etc. the firm offers wider range of the products, services etc. 17.4.2019 Distribution, sale, marketing

The marketing of the surroundings The marketing of the surroundings of the firm includes: Finding out of the information about the competition. The firm has to monitor: The current competition: prices, the amount of produced goods, the technological ways of goods or services elaboration, the demand for their production etc. Possible new competition: potential rivals in enterprise and their possibilities to enter our market Substitutive products: firms that are able to produce the goods that can substitute our products in the consumption 17.4.2019 Distribution, sale, marketing

The marketing of the surroundings The market research. The market research should give the answer to the following questions: Who creates the market, what market subject we can find on the market, who creates our competition? What the market applies, what products, deliveries and services are asked? It is good to find out the products or services with the highest demand that means what kind of products we should produce to achieve the highest returns Who buys on the market? (information about customers, why customers buy) Information about the market it is possible to obtain from: Own information obtained with the distribution and sale The information obtained from the questionnaire research asking for the market needs 17.4.2019 Distribution, sale, marketing

Distribution, sale, marketing The marketing mix The marketing mix involves these tools: Product: monitoring of the quality of the product, the technical level, guarantees, necessary maintenance, service etc., the choice of the production with the highest demand Market logistic: ensures the optimal location of the production, the optimal choice of our suppliers and the providers (with regard to the distance to the productive place and their reliability and responsibility), the optimal location of the stores, the store’s quantity and the sale’s channels. Sale price: The product’s price is very important area connected with the product, the price assigned according to the: costs and supposed profit connected with the certain product’s elaboration (the price should cover the costs connected with the goods’ production) situation on the market (the price of products should be able to compete to the other products on the market) Promotion: to give information about the product to customers, about the product price, about product quality, about the advantages connected with our products. (This can be done with the help of the suitable advertising, in the case of industrial production we can use the personal sale etc.) 17.4.2019 Distribution, sale, marketing

Distribution, sale, marketing Public relation Besides the quality and the quantity of production and the prices of the products the firm is also judged according to the: relation to the environment, relation to the employees, relation to the rate of support to the charitable establishment etc. The firm that doesn’t fill these conceptions has wrong image. Good image of the firm is usually appreciated by: providers customers employees The main objective of the public relation it’s to increase image of firm: the drive for the good relation with the media regular information about the firm to the public in the form of the news, conferences, the reports of the firm’s economy, etc. access of the firm to the public financial support of the public matters 17.4.2019 Distribution, sale, marketing