LITERATURE REVIEW
Overview on sales strategy in Information Technology industry in Vietnam
1.1.1.1 Definition of sales/ sales strategy
Sales, as defined by Philip Kotler (2000), is a crucial component of marketing, often organized as a distinct function within a company, staffed by specialized salespersons While many view sales as a persuasive "art," it fundamentally involves the activity of selling products or services and generating revenue Effective sales strategies focus on delivering timely and cost-effective solutions rather than merely convincing customers to make purchases, as an overly aggressive approach can deter potential buyers Ultimately, successful sales create a win-win situation for both the seller and the customer.
A sales strategy is a planned approach that encompasses account management, prospect identification, sales presentations, and order generation to meet a company's sales targets It serves as a detailed roadmap for positioning products and services in front of the right audience, aligning closely with business plans and marketing strategies An effective sales strategy is crucial for the efficient allocation of sales resources, helping to reduce selling costs while increasing revenue According to strategic management theorist Chandler, a successful strategy involves identifying long-term goals and targets, as well as the necessary actions and resource allocation to achieve these objectives.
A sales strategy is a comprehensive approach that enables an organization's sales team to effectively differentiate the company and its products in the marketplace While each administrator may have their unique methods, the core elements of a sales strategy include defining both short-term and long-term business goals, developing actionable plans to achieve these objectives, and determining the necessary policies and resource allocation for successful implementation Additionally, successful sales strategies are often grounded in best practices and processes established by management.
According to David Gargaro (2020), there are generally two types of sales strategies that are employed by a business, including direct and indirect.
A direct sales strategy focuses on selling products or services directly to consumers through various channels such as sales staff, retail stores, websites, trade shows, or mail orders This approach often involves sales representatives directly comparing their offerings with competitors' products, a practice sometimes referred to as 'negative selling.' By eliminating intermediaries like regional distribution centers and wholesalers, products move directly from manufacturers to direct sales companies Distributors, or sales representatives, receive products from manufacturers to sell directly to consumers, streamlining the sales process and enhancing customer engagement.
Types of direct sales strategy:
Person-to-person sales involve scheduling individual appointments with customers to showcase new products or facilitate product tests and fittings Door-to-door sales entail visiting homes and businesses, either by appointment or unexpectedly, to distribute catalogs and provide product demonstrations In-home presentations, commonly referred to as 'party plan,' consist of organizing gatherings at customers' homes to present various products.
Online shopping: using websites and email lists to build customer networks and offer online ordering facilities.
Venue sales: setting up booths or kiosks at events to generate new leads and promote and sell products.
Network marketing: recruiting other sellers into a network to 'duplicate' your product sales role, earning a percentage of their sales revenue and expanding your product reach.
Indirect sales leverage third parties like partners, affiliates, or distributors to market and sell a company's products or services, allowing customers to purchase through various channels, including retail stores and online platforms like Amazon This subtle approach emphasizes showcasing unique features and benefits without directly referencing competitors, making it a more sophisticated strategy By utilizing indirect sales, businesses can expand their market presence and increase sales without the need to hire additional staff, although this method may result in reduced control over the product and sales processes, as well as the necessity to share revenues.
How do indirect sales work?
Indirect sales allow your company to rapidly boost sales without the need for additional sales personnel By integrating both direct and indirect sales strategies, you can enhance the efforts of your in-house team This approach not only facilitates entry into new markets but also supports growth in existing ones Additionally, leveraging indirect sales can effectively manage increased demand for your products or services, proving to be a more efficient solution than hiring more experienced sales staff.
There are four main types of indirect sales channels:
Affiliates are businesses that earn commissions by selling products or services, acting as intermediaries between the company and the affiliate sellers They receive payment solely upon completing a sale To boost traffic and enhance business growth, companies can equip affiliates with effective advertising and marketing tools.
Resellers play a crucial role in the sales process by selling products directly to customers in face-to-face environments, such as retail stores and dealerships, while representing the product's manufacturer This practice is prevalent in both the software and hardware industries For instance, customers often buy smartphones from service provider stores, acting as resellers, instead of purchasing directly from the manufacturer Typically, resellers earn their income through a percentage of the profit or margin on each sale.
Independent sales representatives are flexible professionals engaged on an as-needed basis to promote and sell a company's products or services This approach allows businesses to adjust their sales force dynamically, reducing overhead costs A typical example of this model is an insurance agent who earns commissions based on acquiring new clients and renewing existing policies.
System integrators are specialized consultants who offer tailored solutions to address client challenges, primarily operating in B2B product and service sales They collaborate with companies that supply hardware, software, and technology consulting, delivering both sales expertise and strategic guidance to enhance business operations.
1.1.1.3 Activities to develop a sales strategy
As a business owner, understanding that your client base is essential for growth is crucial A consistent influx of new customers not only helps expand your business but also aligns with your company vision Farzana Irani emphasizes the significance of a strong client base for all businesses, including virtual ones According to Paige Arnof-Fenn, founder and CEO of Mavens & Moguls, attracting customers hinges on genuinely listening to their needs rather than merely offering solutions to non-existent problems She notes that numerous existing issues require resolution, and customers are ready to invest in those solutions today.
Market research can range from simple qualitative assessments to comprehensive quantitative analyses Utilizing online survey tools allows businesses to quickly and cost-effectively gather feedback from existing customers However, depending on the specific questions and budget, more detailed customer interviews and qualitative studies may be necessary to gauge target customers' perceptions of your business and offerings Recognizing the strengths, weaknesses, opportunities, and threats within your target market is essential, as different products and services may resonate with distinct audiences.
Managing distribution channels/ agent systems
An effective distribution plan is crucial for ensuring products are visible to potential customers and reach end-users efficiently It should align with the overall business strategy, accommodating various products and their specific distribution needs Additionally, the distribution system must facilitate follow-up services and consider factors such as competition for shelf space and strategic location to maximize product visibility and accessibility.
Making sales plans and reports
After a company develops its overarching business plan, each department can create a tailored business plan to establish specific benchmarks and goals, with the sales department being the most critical A well-structured sales plan outlines the company’s objectives and the strategies the sales team will employ to achieve them, ensuring alignment with the overall business strategy While there isn't a universal sales plan template, there are various templates available that can guide you in crafting an effective and realistic sales plan.
1.1.1.4 The importance of sales strategy in business operations
Measurement and assessment of sales strategy
1.2.1 Methods of assessing the effectiveness of sales strategy
In 2016, business writer Vanessa Cross emphasized that a sales strategy serves as a crucial game plan for achieving sales goals Once these goals are met, it is essential to evaluate the effectiveness of the employed sales strategies This assessment helps determine how effectively a company has leveraged market opportunities through its sales team and allocated resources for advertising and promotions, ultimately aiding in customer retention and market share growth.
It's essential to regularly review original sales goals and objectives, as they may evolve during implementation without the sales team's intention For instance, a goal aimed at enhancing quality customer service can shift from a customer-centric approach to a sales-driven focus, as sales personnel prioritize revenue-related targets like increasing prospecting and cold calling efforts.
To effectively assess sales performance, it is crucial to identify gaps between set sales goals and actual outcomes This evaluation occurs at the conclusion of the designated timeframe for achieving these goals For instance, if the objective was to boost sales of Widget B by 15 percent in the fourth quarter of 2011, a thorough analysis of financial and sales reports for Widget B will reveal how well the goal was met.
Evaluating the effectiveness of promotional sales strategies is crucial for enhancing a company's market share For instance, the success of campaigns aimed at boosting market exposure for Widget B can be measured by analyzing the increase in sales following these promotions In addition to comparing Widget B's sales against established goals, variance analysis can be employed to assess its performance relative to historical sales data from previous years This quantitative assessment relies on comprehensive sales and financial reports to provide insights into the impact of promotional efforts.
Evaluate the performance of sales staff by analyzing individual and team-specific sales goals Assess the alignment of established timelines for sales plans with actual performance data to ensure timely execution of sales strategies Additionally, review the sales plan budget in comparison to the actual costs incurred during the implementation of the sales plan.
To assess the effectiveness of a sales plan, calculate the internal rate of return (IRR), a key quantitative evaluation tool that measures investment cost efficiency This involves expressing the total costs of implementing the sales plan as a percentage of the expected revenue generated by the plan within the same timeframe.
Conducting a qualitative analysis of sales performance involves collecting non-numerical data through methods like surveys and focus groups The most valuable insights for assessing a sales strategy often come from open-ended questions For instance, if your company offers B2B services, consider implementing written or telephone surveys with business clients to gather their feedback on customer service during the specific sales period.
This is a tool developed by Albert Humphrey in the 1960s and it is a great tool to help you develop your strategy SWOT stands for Strengths, Weaknesses,
A SWOT analysis is a valuable strategic-planning tool that helps visualize both external and internal factors affecting your business, including opportunities, threats, strengths, and weaknesses This analysis not only provides insights into the overall performance of an organization but also serves as a foundation for developing targeted strategies for sales teams, service departments, and individual employees According to Steve Ferrante, CEO and Trainer of Champions of Sale Away LLC, conducting a SWOT analysis is one of the best methods to gain a clear understanding of your organization's current performance.
Figure 1.2.2.1: SWOT Analysis (Albert Humphrey, 1964)
The SW analysis evaluates the internal environment of a product against competing offerings, focusing on key areas such as Quality, Price, Process, Capability, and Sales/Services Identifying strengths—such as competitive pricing, product benefits, and superior customer service—helps highlight what makes your products appealing to customers Conversely, recognizing weaknesses, like inferior pricing or quality compared to competitors, allows for strategic adjustments in sales communications to emphasize strengths and address potential objections effectively.
To remain competitive in a constantly changing market, companies must focus on continuous self-improvement and product upgrades Identifying opportunities for enhancement, such as improving products, offering better customer services, and exploring new markets, is essential These opportunities often stem from a company’s strengths and weaknesses, allowing businesses to attract more customers or address areas needing improvement Additionally, companies must be aware of threats that could jeopardize profitability, including external risks like customer brand switching due to pricing and internal challenges like ineffective messaging By recognizing these threats, businesses can develop strategies to mitigate their impact and sustain success.
Factors affect sales strategy
In 2019, Sarah Ireland, CEO of One Girl in Australia, emphasized that selling your business should be the last resort when facing challenges Instead, if sales are lacking, it's crucial to analyze the internal factors affecting your sales performance These internal factors stem from within your company and highlight how well you adapt to market changes.
The sales volume of a company is closely linked to the effective management of internal factors Key elements influencing this growth include product offerings, marketing strategies, the expertise of marketing personnel, advancements in technology and automation, diverse e-commerce formats, supplier relationships, financial resources, and the ability to leverage consumers' digital footprints.
Here are the details of each internal factor that may influence your sales in your business:
Your Product: Your product is the largest internal factor that affects your sales.
It should satisfy the needs of your customers so they’ll keep buying your products. Make sure to maintain the quality of your product at a reasonable price.
Marketing Strategy: Brand positioning, traditional marketing, digital marketing, target audience, proper distribution, and correct pricing all impact your sales.
To ensure effective sales and marketing strategies, it's essential that your marketing team possesses the appropriate qualifications and expertise By staying attuned to recent market trends, you can anticipate a higher volume of success in your campaigns.
Every business requires adequate financial resources to successfully launch new products, invest in advanced production facilities, and execute effective marketing campaigns The availability of capital directly influences sales performance, as it determines the reach of marketing efforts A higher budget allows for enhanced digital marketing strategies, including social media marketing, pay-per-click advertising, and email marketing, ultimately attracting a larger customer base.
Leveraging consumers' digital footprints can significantly enhance lead generation by targeting potential customers who have shown interest in your products, such as those who browsed specific categories or signed up for membership Utilizing email marketing to send personalized follow-up messages not only boosts sales but also fosters customer retention by creating a tailored shopping experience that motivates purchases.
Technology and automation play a crucial role in modern business, with examples such as automated order booking, electronic payment systems, and shipment tracking By upgrading your business systems, you can enhance efficiency and significantly boost your sales targets.
E-commerce Multiple Formats: When you’re engaged in e-commerce (internet selling or online business), you need to make sure that your website is secure, so more consumers are encouraged to buy Offer consumers flexible payment options and make your website fast, reliable, and easy to navigate.
Supplier relations play a vital role in your production process, making it essential to establish and nurture a strong network of suppliers The availability of raw materials directly impacts your manufacturing efficiency and the quantity of finished products you can deliver.
When it comes to a business’s external environment, it involves different factors such as political, economic, legal, social, environmental, and technological.
Sales can be affected by political decisions or opposing views of various political parties, as reflected on new and amended laws that affect local and international businesses.
Economic Factors: Sales can be affected by the law of demand and supply, affecting both consumers and business owners.
Social Factors: It has something to do with people, like cultural factors and what consumers perceive as good, healthy, or beneficial products.
Technological factors, particularly in the realm of the internet and digital advancements, play a crucial role in enhancing business sales, especially in e-commerce The integration of software business solutions, such as AI technology like Refract, can significantly improve sales conversions in a matter of seconds.
Legal factors play a crucial role in shaping business operations, as laws impose limitations that can directly impact sales For instance, restrictions on the sale of cannabis-based products illustrate how regulations can influence market opportunities Additionally, various laws, including those governing the sale of goods and employment practices, further affect how businesses function and thrive in their respective industries.
Environmental factors refer to the various elements that influence the impact of a product or service on the environment This includes the use of harmful chemicals or corrosive substances that can harm ecosystems, as well as adherence to "green" or "sustainable" practices aimed at reducing environmental damage.
Indeed, the external environment can affect your business sales in so many ways.
THE STUDY
Overview on VACOM joint-stock company
2.1.1 General introduction of VACOM joint-stock company
Company name: VACOM JOINT-STOCK COMPANY
Mail: info@vacom.com.vn
Legal representative: NGUYEN HAI DANG
Position: Chairman of the Board of Directors
Scope of business: Publishing software
Registered business address: No 144C, Lane 71, Tan Ap Street, Phuc Xa Ward,
Ba Dinh District, Hanoi City
Transaction address: P2118, Starcity Building 23 Le Van Luong, Thanh Xuan District, Hanoi
The red logo of VACOM symbolizes unwavering determination and commitment to delivering convenient software solutions Prioritizing customer satisfaction, VACOM strives to meet and exceed expectations, ensuring that absolute satisfaction remains its foremost objective.
Before 2003, VACOM was founded as an Information Technology Center specializing in providing accounting software During its operation, the center never stops learning, improving technology and developing products.
In March 2003, VACOM was established with the name: Finance and Accounting Software Technology Company Limited.
In July 2003, the Copyright Office granted the copyright certificate: VACOM accounting software.
April 2007 was renamed: VACOM Accounting Software Technology Joint Stock Company and was licensed by Hanoi Department of Planning and Investment on May 7, 2007.
In May 2013, the Copyright Office granted the copyright certificate: VACOM accounting software.
In March 2018, the company changed its name to: VACOM joint-stock C- company.
With over 17 years of experience, the company has established a strong reputation in the market by specializing in management software solutions Their offerings include accounting software, human resource and salary management tools, building management systems, tuition collection management, electronic invoicing, and digital signature services These solutions cater to a wide range of economic sectors, serving both large and small businesses, as well as educational institutions and business households.
Production and implementation of accounting software VACOM
Production and implementation of cash flow management software (Cash flow)
HR software production and deployment
Production and deployment of document management software
Software implementation consultancy ERP (SAP)
Installation support and user manual htkk - support tax declaration
Online tax declaration service - digital signature
VACOM Joint-Stock Company is dedicated to providing comprehensive online accounting solutions, including school fee management software, building fee management tools, and m-invoice electronic invoicing services, to businesses across the nation.
VACOM is dedicated to delivering specialized accounting and business management software solutions Our team of skilled engineers, finance professionals, and consultants ensures that businesses across various sectors benefit from a stable platform rich in features With VACOM's accounting software, companies can effectively streamline their financial operations and enhance overall management efficiency.
VACOM with commitment: golden service
We believe that: A company specializes in providing business management software, especially accounting software, after-sales translation determines the survival of the business.
To satisfy customers, VACOM always follows the principle: Consulting and providing all quality utilities according to customers' specificity.
VACOM is dedicated to delivering tailored consulting and implementation services that meet the unique needs of each client We believe that "every customer is a unique opportunity," and we strive to provide innovative, high-quality solutions that maximize customer satisfaction Our commitment is to consistently enhance our offerings to ensure we exceed our clients' expectations.
VACOM builds a team of staff in the company into a family, harmonious, helping and motivating each individual in the company to fulfill the assigned tasks best.
VACOM is always a place to share the joys and sorrows, always a place to listen to the wishes of each family member Therefore, VACOM's family is always full of people.
VACOM is a nurturing environment that encourages dreams and creativity, allowing each member the freedom to cultivate their unique strengths The supportive community provides both emotional and financial backing for individual projects, fostering innovation and personal growth.
As technology continues to advance, VACOM is effectively expanding its market presence across various provinces and cities in the country by offering comprehensive and diversified management software that meets the diverse needs of businesses and organizations.
With over 12 years of experience, VACOM has served nearly 5,000 customers across the nation, establishing itself as a leading provider of smart utility software The platform is continuously updated to integrate the latest technologies and meet customer demands, ensuring timely and optimal support services.
According to the calculation of the sales department, the business market is listed as follows:
In the northern region, 50% of customers are concentrated in provinces such as Hanoi City, Quang Ninh, Hai Phong, Son La, Dien Bien, Hoa Binh, Cao Bang, Lao Cai, Yen Bai, Thai Nguyen, Vinh Phuc, Bac Ninh, Ha Nam, Hai Duong, Nam Dinh, Thai Binh, Hung Yen, Ninh Binh, and Phu Tho.
Central Region: 22% of customers including cities: Thanh Hoa, Nghe An, Ha Tinh, Quang Tri, Da Nang, Khanh Hoa…
The South: 28% of customers, mainly in Ho Chi Minh City.
2.1.2 Organizational structure of VACOM joint-stock company
The company's organizational structure is led by the Chairman of the Board of Directors, overseeing all activities Supporting the Chairman are the Board of Directors and various departments, including sales, accounting, implementation, marketing, programming, and personnel administration Two deputy directors report directly to the Chairman; one manages the programming and development department, focusing on product research and development, while the other oversees finance and sales, contributing to effective corporate governance.
Figure 2.1.2.1: Organizational structure of VACOM joint-stock company
The company's organizational structure is designed in a compact online model, led by the Chairman of the Board of Directors who oversees all company activities The hierarchy includes the Board of Directors, followed by key departments such as sales, accounting, implementation, marketing, programming, and personnel administration Supporting the Chairman are two deputy directors, with one specifically managing the programming and development department.
Accounting department Marketing department charge of product research and development; There is also a manager of finance and sales of the company, supporting corporate governance.
The Chairman of the Board oversees the company's production and business operations, developing and guiding the execution of strategic plans This role includes appointing and dismissing department heads and their deputies, as well as managing salary promotions, recruitment, layoffs, and staff discipline.
Vice directors oversee the operations of the sales department, managing both the equipment and engineering aspects of projects One director focuses on programming and technical departments, while the other is responsible for sales and marketing.
The sales department is tasked with acquiring new customers, exploring market opportunities, and overseeing all sales activities and distribution channels It develops weekly sales plans and reports, proposes new business strategies, and manages daily operations Comprising 20 staff members, the department is led by a head and three team leaders, each responsible for key product categories: accounting software, electronic invoices and digital signatures, and social insurance software.
The sales department has established a comprehensive sales process that encompasses three key stages: pre-sales, while-sales, and post-sales During the pre-sales stage, sales staff meticulously prepare product information, sales plans, and quotes while actively searching for potential customers In the while-sales phase, the focus shifts to engaging with customers who have shown interest in the product, followed by closing orders or sales contracts The final step involves installing the software or program for the customer, either remotely or on-site Lastly, the post-sales stage emphasizes the importance of providing warranty services and ongoing customer care to ensure satisfaction and support.
Current situation of sales strategy at VACOM joint-stock company
2.2.1 Current activities to develop sales strategy at VACOM joint-stock company
Table 2.2.1.1: Frequency of activities to develop sales strategy at VACOM joint- stock company
Never Seldom Sometimes Usually Always
No % No % No % No % No %
Managing distribution channels/ agent systems
Making weekly sales plans and reports
Proposing new sales plans and organize daily sales managemen t
Table 2.2.1.1 illustrates the frequency of activities employed to develop the sales strategy at VACOM Joint-Stock Company This data is derived from the first question in Part A of the survey questionnaire directed at managers and employees The table outlines five key activities commonly utilized by software companies to formulate their sales strategies.
The company's sales strategy development activities are conducted regularly, with the introduction of new sales plans and daily management meetings being the most frequently evaluated, receiving a perfect score of 100% from managers and nearly 79% from employees Conversely, the least common activity is the creation of weekly sales plans and reports, which only 21.3% of employees rated as frequently occurring.
A detailed analysis reveals that activities are conducted with a consistent frequency, particularly in the search for potential customers, where over 65% of managers indicate it is done regularly, while more than 14% of employees report it as occasional Furthermore, the management of distribution channels and agent systems receives positive feedback, with more than half of employees rating it as regularly performed and all management affirming it is always executed.
Market mining remains underutilized, with over 20% of employees indicating it is rarely practiced, and no managers reporting it as a consistent activity Furthermore, approximately 21% of employees also evaluate the creation of weekly sales plans and reports as infrequent.
The company actively works on enhancing its sales strategy through various activities, primarily focusing on managing distribution channels and developing new sales plans, which are conducted regularly Daily sales management is also a key activity However, market exploitation and the creation of weekly sales plans and reports are less frequently undertaken.
2.2.2 Effectiveness of current sales activities at VACOM joint-stock company
The sales effectiveness of VACOM Joint-Stock Company is demonstrated through its comprehensive sales process, which encompasses pre-sales, post-sales, and after-sales activities The outcomes of these efforts are illustrated in the three tables provided below.
Table 2.2.2.1: Effectiveness of current pre-sales activities at VACOM joint-stock company
Very bad Bad Ok Good Excellent
No % No % No % No % No %
Preparin g: products informati on, quotes
Table 2.2.2.1 demonstrates the effectiveness of pre-sales activities at VACOM Joint-Stock Company, based on the responses to question two from the company's survey questionnaires directed at managers, employees, and customers.
The evaluation of product information preparation and potential customer searching activities is largely positive, with 60% of customers rating them highly Impressively, 100% of management considers these activities to be excellent Notably, no customer provided a negative rating for either activity When focusing specifically on product information preparation, over 40% of employees rated it positively, which is slightly lower than the more than 50% who rated the search for potential customers favorably.
In short, at the pre-sales stage, the preparation of necessary information, invoices for prospecting are all evaluated well and effectively.
Table 2.2.2.2: Effectiveness of current while-sales activities at VACOM joint- stock company
No % No % No % No % No %
Accessing to customers in order to introduce products
Creating a contract on the software and schedule an appointment to sign the contract
Paying the bill with customers
Table 2.2.2.2 illustrates the effectiveness of while-sales activities at VACOM Joint-Stock Company, based on the findings from question number two in part A of the company's survey conducted among managers, employees, and customers.
Most activities at this stage received positive ratings, with the highest-rated activities being program/software installation and bill payment, both rated well by 60% of customers Additionally, 100% of managers rated contract creation and program/software installation as excellent Notably, none of the seven activities were assessed as poorly performed.
Both employees and customers express satisfaction with access to product introductions, with over 20% of employees and 30% of customers rating proposals as acceptable, while more than 30% consider them excellent Negotiation and persuasion efforts are notably effective, and when it comes to contract creation via software and scheduling appointments for signing, over 50% of customers, employees, and managers rate the pre-installation staff training as excellent.
In conclusion, at the while-sales stage, all activities are carried out quite effectively which is reflected in customer satisfaction.
Table 2.2.2.3: Effectiveness of current post-sales activities at VACOM joint-stock company
Sales Very Bad Ok Good Excellent activities bad
No % No % No % No % No %
Warranty and after- sales customers care
Table 2.2.2.3 presents the effectiveness of post-sales activities at VACOM Joint-Stock Company, based on responses to question two from the company's survey questionnaires directed at managers, employees, and customers.
This activity has received positive feedback, with 40% of customers rating it as excellent and 60% as good or okay Additionally, over 65% of managers express satisfaction with the sales department's performance in this activity, while more than 40% of employees also rate it as effective and well-executed.
In summary, through this data, we can see that customers are quite satisfied with the company's after-sales warranty service.
Assessment on sales strategy at VACOM joint-stock company
2.3.1 Achievements of sales strategy at VACOM joint-stock company
Researching VACOM's sales strategy development reveals significant achievements and a well-organized structure from leadership to departments The company is experiencing stable business growth, and the initiatives implemented for sales strategy development have proven to be highly effective.
Effective customer prospecting is a regular practice embraced by all employees, fostering a comfortable environment The management of distribution channels and agent systems is consistently handled through popular platforms like the web, Facebook, and accounting forums The company's well-invested Facebook page has successfully attracted a significant customer base Additionally, the company frequently convenes to discuss new sales strategies and streamline daily sales management, ensuring that both managers and staff have clear targets to enhance their productivity.
The company's sales process is highly effective, with the majority of customers expressing satisfaction at every stage, particularly from initial contact to payment Customers have reported a smooth and well-executed experience, often highlighting their appreciation for the company's products and the professionalism displayed during interactions Many have expressed their gratitude, indicating a strong alignment between customer expectations and the company's service delivery.
The staff expressed satisfaction with the pre-sales activities, particularly in identifying potential customers, indicating that most employees find this process manageable This reflects the effectiveness of the company's distribution channels, which are operating efficiently and yielding positive results.
The company prioritizes post-sale customer care, ensuring that all services are delivered with exceptional attention and care Customers consistently express their satisfaction and pleasure in interactions with the company's staff.
2.3.2 Limitations of sales strategy at VACOM joint-stock company
Despite the achievements of VACOM Joint-Stock Company, there are still challenges that need addressing The company faces limitations in market exploitation and the expansion into new markets Regular market research is crucial, as it enables the identification of new trends, evaluation of the company's strengths and weaknesses, assessment of competitors, and discovery of new opportunities for growth.
The company currently sets annual goals but lacks a consistent approach to weekly sales planning and reporting As the market evolves rapidly, it's crucial for the company to adapt its sales strategies more frequently Implementing regular weekly business plans will enable the company to respond effectively to changing market conditions and enhance overall performance.
To enhance customer satisfaction during the sales process, employees must actively engage with customers by effectively introducing products, making tailored proposals, and providing accurate quotes.
RECOMMENDATIONS
Orientations to improve business strategy development at VACOM joint-stock company
From 2019 to 2020, VACOM Joint Stock Company focused on expanding its market presence while maintaining high product quality The company aimed to successfully introduce its online accounting software, tuition management software, and electronic invoicing solutions to businesses nationwide The success of VACOM is evaluated based on these strategic goals.
Expanding the market and discovering new customer sources are crucial for a company's survival Moving forward, the company will target the promising market of educational institutions, including primary schools, middle schools, and universities Successfully tapping into this sector could significantly enhance the company's growth and propel its business trajectory.
The power of corporate brands
In today's competitive landscape, effective branding is crucial for success, particularly when entering new and potential markets The importance of a strong brand is highlighted in the strategic orientation for 2019-2020, which prioritizes brand building as a key investment goal.
As the company expands its operations, recruitment and training become crucial priorities Attracting highly qualified talent from colleges and universities is a key strategy Additionally, the professional training program for employees will be upheld, aligning with both job requirements and employee aspirations.
Identify strengths - weaknesses - opportunities - threats:
VACOM joint-stock company's software brand is steadily gaining recognition due to its stable product quality and strong customer relationships The company excels in providing rapid software installation and support, utilizing flexible sales tactics to accommodate customer requests for feature enhancements Furthermore, VACOM is attracting significant interest from various companies and sectors within the industry.
The distribution channel remains incomplete, and product pricing lacks competitiveness Additionally, the sales and marketing efforts are weak, with inexperienced staff struggling to identify and persuade potential customers Furthermore, the current equipment fails to support the company's development and expansion needs.
Customers are placing greater emphasis on product quality as the market experiences robust and consistent growth Supplier capacity remains stable, catering to the increasing demands Notably, major cities like Hanoi and Ho Chi Minh City, which host numerous universities and companies, provide a significant customer base.
The accounting software industry faces significant challenges, including increasing competition as more manufacturers enter the market Additionally, software prices remain unstable, and slow innovation and restructuring efforts are often underestimated Market volatility is a critical concern, as the sector is highly sensitive to changes in technology With continuous advancements in science and technology, the threat of substitute products is ever-present, making adaptability essential for success in this dynamic landscape.
In the context of Vietnam's industrialization and modernization under an open-door economic policy, it is crucial for businesses, including VACOM joint-stock company, to adopt a strategic development approach This strategy will enable the company to leverage its existing strengths while mitigating potential risks, ultimately aiming for sustainable growth rather than solely focusing on maximizing profits.
Market expansion and development strategy
Choosing the right strategy is crucial for success, and while a primary focus on a sales strategy is essential, implementing complementary strategies can enhance overall effectiveness The success of this approach relies on the company's human resources After conducting a SWOT analysis and considering various factors, I have selected the "Sales Market Development Strategy" as the central focus for developing a sales strategy for VACOM Joint-Stock Company's stationery products.
The first is market expansion and development strategy
VACOM Joint Stock Company aims to leverage market development strategies to enhance sales by capitalizing on opportunities while ensuring stable product quality and strong customer relationships By focusing on brand reputation and aligning with government policies, VACOM seeks to meet the growing demands for both quantity and quality The company prioritizes the expansion of its business market as a crucial factor for sustainable and long-term growth This includes increasing bidding activities for exclusive software supply to universities in Ho Chi Minh City and Hanoi, as well as targeting neighboring provinces such as Long An, Tay Ninh, Binh Duong (including Vietnam Singapore Industrial Park and My Phuoc 2 Industrial Park), and Binh Phuoc.
In the period of 2019 - 2020, try to expand customer search to these markets To achieve the above goals, market research and brand promotion play an extremely important role.
The second is determining short-term sales goals (annual goals)
Setting annual sales goals is a collaborative process involving multiple departments, fostering acceptance and unity within sales teams These goals are crucial for executing a sales strategy as they guide resource allocation, evaluate strategy implementation, and monitor progress toward long-term objectives Additionally, they help prioritize initiatives throughout the year It is vital that annual sales targets are thoughtfully designed, aligned with overarching goals, and supported by a robust sales strategy.
The third is policy development
Sales policies play a crucial role in resolving recurring issues and guiding enforcement within the sales team By clearly outlining expectations, these policies enhance the likelihood of successful execution of the sales strategy Additionally, they define roles and responsibilities, motivating employees to engage actively in their tasks.
To enhance market development, VACOM Joint Stock Company has implemented several key policies, including regular communication with customers to understand their needs and strengthen relationships Sales staff are encouraged to meet clients after hours and must provide detailed, periodic reports on customer interactions, market conditions, and competitor activities Additionally, sales personnel are motivated to travel to areas lacking permanent staff, while company managers are mandated to visit customers biannually Exceptional sales performance is rewarded with year-end bonuses and company-sponsored trips, whereas underperforming staff must justify their performance through reports and may face termination if standards are not met.
The fourth is allocating, managing sales resources and securing sales resources
Effective allocation of sales resources is crucial for successful sales strategy implementation Strategic sales management ensures that resources are aligned with the priorities set by annual sales objectives Misalignment in resource allocation can significantly hinder the achievement of these sales goals Sales resources encompass a variety of elements, including software tools, policies, sales teams, administrators, financial assets, and facilities.
Recommendations to improve sales strategy at VACOM joint-stock company47 1 Consolidate relationships with customers, gradually expand product
3.2.1 Consolidate relationships with customers, gradually expand product consumption markets
In order to promote and make good use of the existing opportunities of the Company, I would like to recommend the following issues:
To maintain and enhance relationships with traditional customers, it is essential to consistently improve product quality, excel in business tasks, and actively listen to customer feedback By prioritizing effective sales strategies and organizing business operations efficiently, companies can foster loyalty and satisfaction among their clientele.
To enhance the construction market management within the company, it is essential to develop a robust network across both regional and national provinces Regular market research will help in understanding customer preferences, enabling the formulation of effective sales strategies tailored to the current environment Additionally, establishing a cohesive sales and business management system will integrate all economic sectors within the industry, allowing for the optimization of advantages in the City area and beyond, ultimately driving growth across the country.
3.2.2 Build an effective information system
In today's competitive landscape, success hinges not only on capital and experience but also on access to timely information for informed decision-making Establishing an effective internal information system is crucial, encompassing a well-structured communication network and tools to minimize delays and errors in information transmission This system should include a shared database accessible across all company levels, with clear regulations on information access, security protocols, and methods for inspection and supervision Additionally, organizations must develop strategies to source and evaluate external information, creating a comprehensive list of reliable resources for planning and business operations Changing leadership perceptions regarding the significance of information systems is essential, alongside implementing methods to assess their effectiveness.
3.3.3.Planning to train company employees regularly
To enhance sales performance, the company must implement a comprehensive training plan that equips sales staff with essential skills in sales techniques, understanding potential customers, and effective persuasion strategies for closing deals Addressing the challenges faced by sales personnel is crucial, and the company should also focus on providing additional customer leads to support their efforts.
The country is progressing towards development and integration, emphasizing the importance of strategic management for companies This approach marks a significant advancement for VACOM Joint-Stock Company, highlighting its commitment to continuous improvement and growth.
To elevate the company to a sustainable level in today’s competitive environment, it is essential to implement comprehensive changes in management and thinking Transforming the mindset is the most challenging yet crucial step before any organizational change can occur Recognizing that human resources are the key drivers of development, the company must prioritize their growth Enhancing the sales department is vital for further expansion, and the information systems should be updated to align with market changes Additionally, it is important to value even the smallest improvements across all business processes to foster continuous growth and adaptation.
During my internship at VACOM Joint Stock Company, I gained valuable practical knowledge in organizing and participating in the company's sales activities, particularly within the sales department This experience highlighted the importance of the final internship arranged by our school, as it enhances our practical skills alongside the theoretical knowledge acquired at university.
Due to the limited time for practice, my graduation thesis contains some errors, and I appreciate any feedback from my teachers I would also like to express my gratitude to my instructor, Mrs Phan Thi Ha My, for her invaluable guidance in helping me complete this thesis.
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APPENDIX SURVEY ON DEVELOPING SALES STRATEGY AT VACOM JOINT- STOCK COMPANY
This survey is a part of graduation thesis entitled “Developing sales strategy at
The following questions are designed to gather measurable data for assessing the effectiveness of the business strategy at VACOM Joint Stock Company Your responses are greatly appreciated and will contribute to our evaluation process Thank you for your support!
A Current sales strategy at VACOM joint-stock company
1 Current activities to develop sales strategy at VACOM join-stock Company
Please rate the frequency of current activities to develop sales strategy at VACOM joint-stock company
Rate Activities Never Seldom Sometimes Usually Always
Managing distribution channels/ agent systems
4 Making weekly sales plans and reports
Proposing new sales plans and organize daily sales management
2 Effectiveness of current sales strategy at VACOM joint-stock company
Very bad Bad Ok Good Very good
Very bad Bad Ok Good Very good
1 Accessing to customers in order to introduce products
4 Creating a contract on the software and schedule an appointment to sign the contract
7 Paying the bill with customers
Very bad Bad Ok Good Very good
1 Warranty and after- sales customers care
B How to improve the sales strategy at VACOM Joint Stock Company?
Thank you for your cooperation!