Procedural aspects of generation and implementation of strategies for managing sales activities of processing enterprises

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Procedural aspects of generation and implementation of strategies for managing sales activities of processing enterprises

Volyk Serhii Candidate of Economics Sciences, Doctoral Candidate, Sumy National Agrarian University

The article is devoted to developing conceptual foundations and procedures for generating and implementing strategies for managing the sales activities of processing enterprises. The study substantiates a model for the formation of the strategy of a processing enterprise, covering the key stages of strategic planning. It is recommended that the strategic marketing planning process be reviewed to ensure efficiency in the sales activities of processing enterprises. A strategic set of processing enterprises has been defined and characterized, which is a system of strategies of various types that are developed by an enterprise for a certain period, which reflects the specifics of the functioning and development of the enterprise, as well as the level of its claim to a place and role in the external environment. In order to introduce the most effective tools of strategic planning in the sales activities of a processing enterprise, a revision of the strategic marketing planning process is proposed. The main stages of marketing strategic planning of processing enterprises are the formation of the mission, the transformation of the mission into goals, the analysis of the external and internal environment, the conduct of SWOT analysis, the definition of marketing goals, the formation of marketing strategies, the development of a marketing program, the organization and implementation of marketing, as well as marketing control. Thanks to these milestones, the company can formulate its mission and goals and develop effective strategies and programs to achieve these goals. The basic principles of forming a strategic set are emphasized, considering the orientation towards the ultimate goals, the balance of strategies, and clarity in understanding the need for their application. Strategic priorities for increasing the competitiveness of processing enterprises have been identified, such as increasing the concentration of capital, investment attractiveness, reinvestment of profits, increasing the size of enterprises, and introducing innovations. Implementing these strategies should contribute to increasing economic efficiency and adapting to the challenges of sales markets.

Keywords: competition, sales, marketing, strategy, strategic set, target markets, processing enterprises.

ПРОЦЕДУРНІ АСПЕКТИ ГЕНЕРУВАННЯ ТА ІМПЛЕМЕНТАЦІЇ СТРАТЕГІЙ УПРАВЛІННЯ ЗБУТОВОЮ ДІЯЛЬНІСТЮ ПЕРЕРОБНИХ ПІДПРИЄМСТВ

Волик Сергій Володимирович

Сумський національний аграрний університет

Стаття присвячена розробці концептуальних засад та процедур генерування та імплементації стратегій управління збутовою діяльністю переробних підприємств. У дослідженні обґрунтовано модель формування стратегії переробного підприємства, охоплюючи ключові етапи стратегічного планування. Рекомендується перегляд процесу стратегічного маркетингового планування для забезпечення ефективності у збутовій діяльності переробних підприємств. Було визначено та описано стратегічний комплекс обробних підприємств, представляючи його як набір різноманітних стратегій, які компанія розробляє для конкретного періоду. Цей комплекс відображає унікальність операцій та еволюцію компанії, підкреслюючи її амбіції щодо позиціонування та впливу в зовнішньому бізнес-середовищі. З метою впровадження найбільш ефективного інструментарію стратегічного планування в збутовій діяльності переробного підприємства, пропонується перегляд процесу стратегічного маркетингового планування. Основними етапами маркетингового стратегічного планування переробних підприємств є формування місії, трансформація місії в цілі, аналіз зовнішнього та внутрішнього середовища, проведення SWОT-аналізу, встановлення маркетингових цілей, розроблення стратегій маркетингу та створення маркетингової програми, організація та реалізація маркетингу, а також контроль маркетингу. Завдяки відзначеним етапам, підприємство має змогу не лише чітко сформулювати свою місію та цілі, але й розробити ефективні стратегії та програми для досягнення цих цілей. Наголошено на основних принципах формування стратегічного набору, враховуючи орієнтацію на кінцеві цілі, баланс стратегій та ясність у розумінні необхідності їх застосування. Ідентифіковано стратегічні пріоритети для підвищення конкурентоспроможності переробних підприємств, такі як підвищення концентрації капіталу, інвестиційна привабливість, реінвестування прибутку, збільшення розмірів підприємств та впровадження інновацій. Реалізація цих стратегій має сприяти підвищенню економічної ефективності та адаптації до викликів ринків збуту. competition sale marketing strategy

Ключові слова: конкуренція, збут, маркетинг, стратегія, стратегічний набір, цільові ринки, переробні підприємства.

Problem statement

In the context of the dynamic development of the competitive market environment and the growing influence of the information society on the development of the economy, one of the critical factors in the efficiency of processing enterprises is the enterprise's strategy. Consequently, the role of the strategic planning process in the management of sales activities of processing enterprises increases. It is the practice of their activities that shows that enterprises that are in a competitive environment face the problem of improving common approaches to the process of forming strategic plans.

The sales strategy for processing enterprises provides a framework for the practical introduction of products to the market, where it is essential to consider the specifics of production and competitive advantages. She contributes to developing marketing approaches and loyalty programs that promote customer acquisition and retention. Supply chain optimization and supplier engagement are also essential parts of the strategy, helping to ensure supply sustainability and effective inventory management. The sales strategy also allows businesses to adapt to changing market conditions and respond quickly to the challenges of the business environment. A coherent sales strategy is vital for achieving sustainable growth and competitiveness in the process industry.

Analysis of recent research and publications

The issues of theory and methodology of organization and management of sales activities of enterprises and related specific applied aspects were the subject of scientific research by the following economists: Balabanova L. V., Zaitsev Y. O., Kvyatko T. M., Krasnorutsky O. O., Kosareva T. V., Marenych T. G., Marchenko V. A., Mitrokhina Y. P., Nitsenko V. S., Pomogalova N. V., Rossokha V. V., Khrupovich S. E., Sharapa O. M. [1-9] and others. Despite the existing scientific developments, At the present stage, there are several problems in the application of strategies for managing the sales activities of processing enterprises, in particular, the development of measures to improve its efficiency, determining the criteria for choosing the directions of sales strategies, reducing and preventing the risks associated with the sale of products, and others.

Formulation of the objectives of the article

This article aims to develop the conceptual foundations and procedures for generating and implementing strategies for managing the sales activities of processing enterprises.

Presentation of the main research material

The strategies of enterprises can be considered on a functional basis studying the problem of strategic management of sales activities of processing enterprises. Thus, the company's activities are multifaceted. Strategic management of processing industry enterprises is carried out not only at the corporate level. Regarding functional orientation, one of the areas of strategic management is marketing.

The choice of a marketing strategy, as you know, depends on the factors of the external and internal environment. In terms of form, a strategy is one of the management documents that can be presented in graphs, tables, descriptions, etc. A strategic approach to sales activities involves the development of goals, sales strategies, and programs to achieve them. It is the strategies that determine the way to improve the efficiency of sales activities and the development of the enterprise. The starting point in implementing a sales strategy is its target orientation.

At the same time, according to Kosareva T. (or sales activity), the sales strategy of enterprises is a long-term planning methodology of the process of organization and management of sales, which allows you to successfully implement the philosophy of sales by a specific selling enterprise [3]. Zaitsev Y. O. and Krasnorutsky O. O. have similar views on the definition: the sales strategy is a generalized model of actions necessary to achieve sales goals and includes all operations related to planning and decision-making in this area. A sales strategy is a set of decision-making rules guiding an enterprise's activities [2; 5]. In other words, a sales strategy is a repeated process

that begins with a statement of the current position of the enterprise. As a rule, this process is always individual and requires a thorough analysis of the sales activities of the enterprise and its structural divisions.

The model of formation of the strategy of the processing enterprise is a complex of sequential actions of the enterprise, which involves, in addition to the traditional stages for strategic planning, the formation of the mission of the processing enterprise, definition of goals, marketing audit; SWOT analysis; definition of marketing goals; formation of a marketing strategy; development of a marketing program; its organization and its implementation - the use of well-known strategic models in the formation of a marketing strategy, which will allow you to choose the most optimal way to achieve the goals of the enterprise.

In order to implement the most effective tools for strategic planning and sales activities of a processing enterprise based on marketing research data, we propose to revise the strategic marketing planning process. At the same time, there is no need to revise the entire strategic planning process since the general scheme of the implementation process and some stages are traditional or generally recognized. Such stages of marketing strategic planning, in our opinion, include:

Stage 1. Formation of the mission of the processing enterprise. The mission is a formulated, socially significant, functional purpose of the enterprise in the long term.

There are two well-known approaches to its formation. The first is when the enterprise's mission is perceived as a means of clearly defining the main directions of the enterprise's activities. The second is the Ashreed model of mission selection (authors - Campbell and Tovaday), which involves determining the purpose of the enterprise, its strategy, norms of behavior in the market, and its value system.

Stage 2. Transformation of the mission into the goals of the enterprise. It is a generally recognized stage of strategic planning, at which the transformation of the mission of the processing enterprise into goals takes place. An enterprise's marketing goals are specific qualitative and quantitative commitments of an enterprise in terms of sales or profit that can be achieved in a certain period.

Stage 3. Analysis of the enterprise's external (macro- and micro-) and internal environment. The primary purpose of studying the business environment is to find and realize new marketing opportunities for the processing enterprise.

Analysis of the market environment includes the collection of market information, analysis, and decision-making in the context of the functioning of the enterprise in its constantly changing marketing environment. Environment tracking includes various activities - from constantly analyzing and forecasting major trends to irregular information collection through personal contacts, studying competitors' products, tracking their activities at exhibitions and conferences, or espionage.

Stage 4. Conducting a SWOT analysis of a processing enterprise.

SWOT analysis is an essential element of the analysis of the external and internal environment of companies for decision-making on the definition of the mission, goals, and strategy of the organization through the search for strengths and weaknesses in the organization's activities, opportunities, and threats that affect the organization's activities from the outside. SWOT analysis is the basis for the formation of marketing goals and strategies.

Stage 5. Definition of marketing goals. An enterprise's marketing goals are specific qualitative and quantitative commitments of an enterprise in terms of sales or profit that can be achieved in a certain period.

Stage 6. Formation of marketing strategies. Certainty about the marketing goals of the enterprise provides an opportunity to move on to the issue related to developing a marketing strategy. Marketing strategy is a program of the company's marketing activities in target markets, which determines the principal decisions to achieve marketing goals.

Stage 7. Development of a marketing program. This stage is associated with making decisions about each of the components of the "4P" of marketing - the product (package size, improvement of product characteristics, design changes), prices, promotion, and distribution. These decisions should indicate the path to the implementation of the strategy and, ultimately, the achievement of marketing goals.

Stage 8. Organization and implementation of marketing at the enterprise. Implementing a marketing plan is no less important than planning since a plan is only a plan that becomes a reality thanks to the efforts of staff and mutually coordinated actions of different departments.

Phase 9: Oversight in Marketing. This phase involves assessing and measuring the outcomes derived from executing marketing strategies, coupled with applying adjustments to guarantee the fulfillment of marketing objectives. This oversight marks the culmination of the marketing management process while laying the groundwork for a new marketing planning cycle. Consequently, recognizing the effective and ineffective aspects of marketing efforts and evaluating the extent to which marketing strategies have been executed is essential for making informed decisions regarding the objectives and strategies for future marketing endeavors during the upcoming planning phase.

A strategic set is a system of strategies of various types developed by an enterprise for a certain period, which reflects the specifics of the functioning and development of the enterprise, as well as the level of its claim to a place and role in the external environment. A strategic set is not a demonstration of general intentions but an emphasis on individual enterprises' distinctive characteristics and characteristics.

The strategic set of any enterprise can be represented in the form of a diagram (Figure 1).

Our proposed approach is adapted to the conditions of activity of processing enterprises, which is expedient to form in the form below.

The development of a strategic framework by any business must adhere to fundamental principles. Drawing from the research and analyses of scholarly works by both local and international experts and grounded in observational insights, the strategic formulation for a manufacturing entity ought to be established on these core principles:

- orientation of enterprises' activities to achieve the ultimate goals and objectives of the enterprise's marketing activities in the sales market;

- striving and obtaining a positive effect from the production and sales activities of the enterprise, maintaining a balance between profitable and cost strategies;

- formation of a set of strategies for the enterprise based on a clear understanding of market conditions through significant marketing research of the sales market, their dynamism, and flexibility;

- clarity of content and understanding of the need to apply a particular set of strategies, taking into account the specifics of the company's activities, the state of the market, and its conjuncture;

- compliance with the hierarchical order in the development of a set of strategies, taking into account the peculiarities and interconnection of economic processes and their impact on strategic goals;

- validity and reasonableness of proposals regarding the composition of the strategic set in the process of adjusting the "set".

The problem of forming a set of strategies that would provide the enterprise with stable sales of its products should be solved at all levels of strategic planning. Particular attention should be paid to the problem of interconnection and mutual influence of the components of a processing enterprise's strategic set at the functional marketing strategy level.

Figure 1. Formation of the "strategic set" of the enterprise

Source: systematized, summarized, and grouped by the author

Forming an optimal sales strategy for manufactured products and its implementation depends on adequate market conditions, production, and assortment policy. The relationship between the assortment of the enterprise and the volume of sales of products is quite clear: the enterprise's commodity policy must meet the needs of the region's population and demand in general. Compliance with the range of products, their quality, labeling, and packaging with the requirements of consumers and their expectations is the main requirement of a competitive market. Therefore, at the stage of planning and organization of the enterprise's sales activities and the formation of a distribution policy, there is a need to consider such a factor as the compliance of the enterprise's commodity policy with the requirements of the sales market.

The impact of the marketing product policy on an enterprise's production and sales operations manifests during the development of new products, the modernization of existing ones, and the phasing out of outdated items. This policy should focus on boosting production and sales volumes by addressing the population's needs, essentially shaping the company's product mix strategy based on consumer demand. The effectiveness of the sales efforts of manufacturing businesses is significantly influenced by how well the product mix aligns with the market demands of the consumer base.

Acquisition by enterprises of a tendency to increase the economic efficiency of activities in a particular target market is evidence of the successful implementation of its competitive development potential. However, such an increase may be caused by a shortterm upward price trend for these products. The latter determines the instantaneous nature of changes in the competitiveness of products and the tendentious nature of changes in the enterprise's competitiveness. Thus, an essential feature of the competitiveness of an enterprise is the duration and prospects of operating in a particular market with a specific product.

Taking into account the duration of the prospects for successful activity of processing enterprises in the target markets for products, the study identifies the main strategic priorities for increasing their competitiveness, which include the following relations: increasing the level of concentration of capital by commodity producers with the involvement of integration tools, creating conditions for the investment attractiveness of processing enterprises, reinvesting the accumulated profit in the development of economic potential; increasing the size of processing enterprises and the scale of production in order to open up opportunities for the formation of commercially significant batches of agricultural products; creation of price and quality competitive advantages on the basis of broad introduction of innovations in the production and sales activities of processing enterprises; development of types of products that are in demand in the foreign market, in particular, organic and environmentally friendly agricultural products; rational solution of the problem of storage of products in order to effectively use seasonal price fluctuations in target markets. Implementing these strategic directions in the form of procedures for managing the competitiveness of processing enterprises and their products will allow the latter to increase the economic efficiency of their activities, increase market power, and effectively adapt to the uncontrollable challenges of target markets.

In modern conditions, it is expedient to solve the problems of increasing the economic efficiency and competitiveness of enterprises by intensifying the involvement of integration tools, creating vertically integrated production and sales associations of enterprises that can compete with existing agricultural holdings, creating conditions for increasing the efficiency of production of intermediate consumption products in agricultural production without reducing the economic results of products final sales of subjects in the sphere of production. The creation of such associations involves the satisfaction of the economic interests of all categories of its members. The main principles of their formation are the flexibility and manufacturability of the commodity policy, as well as the possibility of creating as much added value as possible within the association.

The key direction of creating competitive advantages of a price nature and strengthening the competitive position of enterprises is to increase the size of consignments to the level of commercial significance and rationalize market positioning. At the same time, the scale of production of the vast majority of commodityproducing enterprises only allows them to achieve positive changes in the use of existing market distribution channels if they combine efforts. This actualizes the issue of the development of vertical and horizontal sales integration of processing enterprises, as well as the creation of infrastructural elements of consolidation of commercial efforts of commodity producers.

Conclusions

Thus, the model of forming the strategy of a processing enterprise involves a set of sequential actions, covering the traditional stages for strategic planning, such as mission formation, the definition of goals, marketing audit, SWOT analysis, the definition of marketing goals, formation of marketing strategies, development of a marketing program, its organization, and implementation. Using strategic models to form marketing strategies lets you choose the best way to achieve enterprise goals.

To incorporate the most effective strategic planning tools into the sales operations of a manufacturing enterprise, a reevaluation of the strategic marketing planning process is recommended. The critical phases of strategic marketing planning include establishing the mission, converting the mission into objectives, conducting analyses of both external and internal environments, carrying out a SWOT analysis, setting marketing objectives, developing marketing strategies, crafting a marketing program, organizing and executing marketing activities, and performing marketing oversight. Through these critical steps, a company can articulate its mission and objectives and devise and implement effective strategies and programs to meet these objectives.

The basic principles of forming the strategic set of the processing enterprise are defined. Among them: focus on achieving the ultimate goals and objectives of marketing activities; striving for a positive effect from production and sales activities and a balance between profit and cost strategies; formation of strategies based on a thorough analysis of the market and conducting marketing research; clarity and understanding of the need to apply a specific set of strategies, taking into account the specifics of the activity and the market; adherence to the hierarchical order and balance of proposals in the development of the strategy.

The key strategic priorities for increasing the competitiveness of processing enterprises in the target sales markets have been identified. These priorities include increasing the concentration of capital, creating investment attractiveness, reinvesting profits in development, increasing the size of enterprises to form commercially significant batches of products, introducing innovations, mastering popular types of products, and rationally solving the problem of storage. Implementing these strategies through effective management will allow enterprises to increase economic efficiency and market power and adapt to the challenges of target markets.

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