All entrepreneurs and proprietors of business organizations are aware that the only department that generates money in the form of revenue for their establishments is sales. This rule is applicable to all businesses regardless of whatever market environment these enterprises conduct their commercial operations. These businesspersons may have the most efficient manufacturing process, state of the art technology and most innovative managerial personnel at their disposal. However, all this will be useless unless they have an effective sales mechanism within their organization. This is the reason why this activity is one of the most important functions of any business enterprise
Means to generate revenue
Heather Weber Merrill Lynch from the USA is enthusiastic about business and entrepreneurship explains that business organizations can make money from a variety of sources. These include the income they generates by selling its good, royalties from the assets they lease out to establishments or dividend income from the financial properties they own. In addition to this, such establishments can also generate cash form of income from their rental property or capital gains from the sale of such immovable assets. However, even commercial establishments that generate no taxable income directly from its business operations usually have a sale mechanism in place. This enables them to earn revenue to finance the purchase and sale of various investments in income-generating assets.
Sales or marketing: Where does one activity start and other end
He goes on to clarify that at times, many entrepreneurs find it hard to establish the boundary line where an effective marketing procedure ends and the efforts to conduct sales begin. The vital purpose of such a critical activity is to generate money for the organization. However, it is essential for such businessperson to realize that an effective marketing strategy lays the foundations for successful sales activities to take place. In short, the personnel responsible for marketing ensures a horse reaches a water source but it is the sales team that make the animal drink it.
Relationship between sales and marketing
In any business environment, very few consumers buy a product on impulse. For instance, cans of a popular soft drink remains on the shelves of a supermarket shelf for a reason. This is because the wholesaler of this beverage maintains strong business relationship with the manager of the store. To ensure that the efforts produce the necessary results, the personnel responsible for conducting sales need the assistance of those in charge of marketing. They are the individuals who have to carry out subsequent contacts with the customers. If this kind of support is not present, the business relationship may not endure and it can have a detrimental effect on turnover.
Heather Weber Merrill Lynch says it is important for entrepreneurs to invest in sales rather than regard the activity as an afterthought. Instead of allowing their personnel to concentrate on it after addressing problems to production, distribution and finance, it is better to employ experts in this field. Moreover, it is vital to back up the efforts of such professionals with an effective marketing team to establish strong client relationships.