LITERATURE REVIEW
Overview on developing sales strategy in Information Technology
1.1.1 Overview on sales strategy in Vietnam
1.1.1.1 Definition of sales/ sales strategy
Sales is often viewed differently by various administrators, but according to Philip Kotler (2000), it is fundamentally a component of marketing While sales typically operate as a distinct unit within a corporate structure, employing specialized salespersons, it is often regarded as an "art" of persuasion The business dictionary defines sales as the activity of selling products or services, or as a synonym for sales revenue or volume However, effective sales are not merely about convincing potential customers or employing persuasive tactics; such approaches can be off-putting Instead, the goal of sales should be to offer timely and cost-effective solutions, creating a win-win situation for both the seller and the customer.
A sales strategy is a planned approach to account management, prospect identification, sales presentations, and order generation aimed at achieving a company's sales targets It details how to effectively present products and services to the right audience, aligning with overall business and marketing plans By efficiently allocating sales resources, a sales strategy helps reduce selling costs while increasing revenue According to Chandler's 1962 theory of strategic management, a successful strategy involves identifying long-term business goals and the necessary actions and resources to achieve them.
A sales strategy is a vital approach that enables an organization's sales team to effectively position the company and its products in a unique and impactful manner While each administrator may have their distinct methods, the core elements of a sales strategy include establishing both short-term and long-term business goals, developing a comprehensive plan to achieve these objectives, and determining the necessary policies and resource allocation for successful implementation Best practices and processes outlined by management further enhance the effectiveness of these strategies.
According to David Gargaro (2020), there are generally two types of sales strategies which are employed by a business: direct or indirect.
A direct sales strategy focuses on selling products or services directly to consumers through various channels, including sales staff, retail stores, websites, trade shows, or mail orders This approach involves sales representatives actively comparing their offerings with competitors' products, often employing a tactic known as 'negative selling.' By eliminating intermediaries such as wholesalers and regional distribution centers, products move directly from manufacturers to the direct sales company For distributors or sales representatives in this model, the manufacturer supplies the products for direct sale to the end consumer.
Types of direct sales strategy:
Person-to-person sales: arranging individual appointments with customers to make presentations, demonstrate new products or arrange product tests or fittings
Door-to-door sales involve visiting homes and businesses, either by appointment or unexpectedly, to distribute catalogues and showcase products through demonstrations In-home presentations, commonly known as 'party plan' events, are organized gatherings where products are presented in a social setting, allowing for interactive engagement and direct sales.
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.
An indirect sales strategy involves leveraging third parties, such as partners, affiliates, or distributors, to sell your products or services, allowing customers to purchase through various channels, including retail stores and online platforms like Amazon This approach subtly highlights unique features and benefits of your offerings without directly comparing them to competitors, making it a more sophisticated sales technique By utilizing indirect sales, businesses can expand their market presence and increase sales without the need for additional staff, although it does entail reduced control over the sales process and revenue sharing.
How does indirect sales work?
Indirect sales allow companies to boost revenue swiftly without the need for additional sales personnel By integrating both direct and indirect sales strategies, businesses can enhance the efforts of their in-house sales teams This approach not only facilitates entry into new markets but also supports growth in existing ones Additionally, leveraging indirect sales can efficiently manage increased demand for products or services, making it a more effective 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 companies and affiliate sellers They receive payment solely upon making a sale To enhance traffic and business growth, it's beneficial to equip affiliates with effective advertising and marketing tools.
Resellers operate in face-to-face environments, such as retail stores and wholesalers, acting as representatives for product manufacturers This practice is prevalent in the software and hardware sectors, where customers often buy items, like smartphones, from service providers instead of directly from manufacturers Typically, resellers earn their income through a profit margin on each sale.
Independent sales representatives are contracted to sell a company's products or services on a flexible basis, allowing businesses to adjust their sales force according to demand This approach helps reduce overhead costs A typical example of this model is an insurance agent, who earns a commission for acquiring new clients and securing renewals.
System integrators serve as consultants, delivering tailored solutions to address client challenges, primarily within the B2B sector They collaborate with companies offering hardware, software, and technical expertise, providing essential sales and consulting services 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 supports your vision Farzana Irani emphasizes the significance of a robust client base for all businesses, including virtual ones Paige Arnof-Fenn, founder and CEO of Mavens & Moguls, highlights that attracting customers involves listening to their needs rather than imposing solutions She notes that numerous existing problems await resolution, and customers are ready to invest in solutions that address those needs.
Market research can range from simple qualitative studies to comprehensive quantitative analyses It can be conducted quickly and affordably by utilizing online survey tools to gather feedback from existing customers However, depending on your research objectives and budget, it may also require more in-depth customer interviews and qualitative assessments to gauge target customers' perceptions of your business and its offerings Recognizing the varying appeal of products and services across different audiences is essential, making it crucial to analyze the strengths, weaknesses, opportunities, and threats within your target market.
Managing distribution channels/ agent systems
1.1.1.4 The importance of sales strategy in business operations
Strategic management enables businesses to define their goals and direction, allowing them to identify opportunities and advantages within the market By leveraging these insights, companies can develop effective strategies and policies that align with their objectives, ultimately driving growth and success.
Business environments are constantly evolving, and strategic management enables managers to anticipate current and future uncertainties and risks By leveraging the strengths of their enterprises, managers can proactively address these challenges.
Strategic management helps administrators to effectively use the enterprise's resources and allocate them appropriately.
Strategic management coordinates the functions of an enterprise in the best way on the basis of achieving the common goals of the business.
1.1.2 Overview on Information Technology industry in Vietnam
Measurement and assessment of sales strategy
1.2.1 Methods of assessing the effectiveness of sales strategy
In 2016, business writer Vanessa Cross defined a sales strategy as a comprehensive plan designed to achieve specific sales goals and objectives Once these goals are met, it is crucial 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 utilized capital resources for advertising and promotions, ultimately aiming to retain customers and expand market share.
It's essential to periodically review the 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, particularly when sales personnel prioritize revenue-generating activities like prospecting and cold calling.
To effectively assess sales performance, it's crucial to identify gaps between set sales goals and actual outcomes This analysis involves reviewing the achievement of specific quantitative targets, such as increasing sales of Widget B by 15 percent in the fourth quarter of 2011 By examining financial and sales reports at the end of the designated period, businesses can evaluate their success in meeting these objectives.
Evaluating the effectiveness of promotional sales strategies is crucial for enhancing a company's market share The success of campaigns aimed at boosting market exposure for products, such as Widget B, can be measured by analyzing sales increases following promotional efforts In addition to comparing Widget B's sales against established goals, variance analysis can provide insights by contrasting current sales with historical data from previous years This quantitative assessment relies on sales and financial reports to deliver a comprehensive evaluation of promotional impact.
To enhance sales effectiveness, it's crucial to evaluate the performance of sales staff by assessing individual and team-specific sales goals This review should involve comparing established timelines for sales strategies with actual performance data to gauge the timely execution of these plans Additionally, a thorough analysis of the sales plan budget against the actual costs incurred in implementing the strategy is essential for optimizing future sales initiatives.
To assess the cost efficiency of investments in a sales plan, calculate the internal rate of return (IRR) This quantitative evaluation tool expresses the total costs of implementing the sales plan as a percentage of the projected revenue generated by the plan for the same timeframe.
Conduct a qualitative analysis of sales performance by utilizing non-numerical data collected 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 business offers B2B services, consider implementing written or telephone surveys to gather feedback from clients about their customer service experiences during the relevant sales period.
Developed by Albert Humphrey in the 1960s, the SWOT analysis is a powerful strategic tool that helps businesses identify their Strengths, Weaknesses, Opportunities, and Threats This simple yet effective framework allows organizations to visualize both internal and external factors impacting their operations By examining these four areas, businesses can gain insights into their current performance and develop targeted strategies for sales teams, service departments, and individuals Steve Ferrante, CEO of Champions of Sale Away LLC, emphasizes that conducting a SWOT analysis is one of the best ways to achieve a clear understanding of an organization's performance and inform strategic planning efforts.
STRENGTHS (positive attributes external to the organization/team/project that are within its control )
WEAKNESSES (internal factors within an organization/team/project’s control that may reduce its ability to meet objectives)
OPPORTUNITIES (external factors that the organization/team or project should develop)
THREATS (external factors beyond the organization/team’s control that could place the project or organization at risk)
The SW analysis evaluates the internal environment of a product in relation to competing products, focusing on key areas such as Quality, Price, Process, Capability, and Sales/Services It begins by identifying strengths, which are the reasons customers prefer your offerings over competitors, such as competitive pricing, product benefits, or superior customer service Highlighting these unique selling points is crucial for differentiation Conversely, weaknesses are the areas where your products may fall short compared to the competition, such as inferior pricing or quality Recognizing these weaknesses allows you to address potential objections and refine your sales strategy to emphasize your strengths in communications.
Besides, to adapt to the market and the environment, we must constantly improve ourselves To adapt to the ever-changing environment and avoid fighting the Red
To remain competitive, companies must iteratively upgrade their products, identifying opportunities for improvement in services, market expansion, and competitive positioning These opportunities are often shaped by the company's strengths and weaknesses, enabling better customer attraction and competitive enhancement Additionally, it is crucial to recognize potential threats to sales and marketing strategies that could jeopardize profitability, including external risks like customer brand switching and internal challenges such as ineffective messaging By identifying these threats, companies can develop strategies to mitigate their impact and strengthen their market presence.
Factors affect sales strategy
In 2019, Sarah Ireland, CEO of One Girl in Australia, emphasized that selling your business is not the solution when facing challenges Instead, business owners should focus on analyzing internal factors that influence sales performance, especially during periods of low sales These internal elements stem from within the company and are crucial in determining how well a business adapts to market changes.
The sales volume of a company is closely linked to the effective management of internal factors such as product quality, marketing strategies, and the expertise of marketing personnel Additionally, the integration of technology and automation, the utilization of various e-commerce formats, and strong supplier relationships play crucial roles Financial resources and the ability to analyze consumers' digital footprints further enhance a company's capacity to drive sales growth.
Here are the details of each internal factor that may influence your sales in your business:
Your product is the most significant internal factor influencing your sales, as it must meet customer needs to encourage repeat purchases Ensuring high quality while keeping prices reasonable is essential for maintaining customer satisfaction and loyalty.
Marketing Strategy: Brand positioning, traditional marketing, digital marketing, target audience, proper distribution, and correct pricing all impact your sales.
To achieve successful sales and marketing strategies, it is essential to have a qualified marketing team that understands current market trends By leveraging their expertise, you can anticipate a higher volume of engagement and results.
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 plays a crucial role in determining sales performance, as it influences the reach of marketing efforts With sufficient funding, businesses can enhance their digital marketing strategies, including social media marketing, pay-per-click advertising, and email marketing, ultimately attracting a larger customer base.
Leveraging consumers' digital footprints is crucial for generating leads, as it involves engaging potential customers through targeted follow-up emails, particularly to those who have explored product categories or registered as members By sending personalized sales messages, businesses can significantly boost sales, as tailored customer experiences enhance buying motivation and foster customer retention.
Technology and automation play a crucial role in modern business operations, with examples such as automated order booking, electronic payment systems, and shipment tracking enhancing efficiency By upgrading your business systems, you can streamline processes and ultimately achieve 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.
Establishing strong supplier relations is essential for effective production, as it directly impacts the availability of raw materials A robust network of suppliers ensures a smooth manufacturing process and supports the consistent output of finished products.
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 play a crucial role in enhancing business sales, particularly in e-commerce, by leveraging advancements in science and technology The integration of software business solutions, such as AI technologies like Refract, can significantly improve sales conversions in a matter of seconds.
Legal factors impose essential boundaries on businesses, significantly influencing sales outcomes For instance, restrictions on the sale of cannabis-based products highlight how laws can directly impact market opportunities Additionally, various regulations, including those governing the sales of goods and employment, play a crucial role in shaping business operations and strategies.
Environmental factors play a crucial role in determining the impact of a product or service on the environment This includes the use of harmful chemicals and corrosive agents that can cause environmental damage, as well as adherence to green and sustainable practices.
Indeed, the external environment can affect your business sales in so many ways.
1 Philip Kotler, Principles of Marketing, Prentice -Hall, 1980
2 What is Sales | Sales Definition by Act! (2021) Retrieved 28 March 2021, from https://www.act.com/en-uk/what-is-sales
3 Harris, Ira (2000) The Strategy/Structure Debate: An Examination of the Performance Implications Journal of Management Studies 37 587-604 10.1111/1467-6486.00195
4 How Indirect Sales Can Grow Your Business Business News Daily (n.d.). https://www.businessnewsdaily.com/15945-what-are-indirect-sales.html
5 Wasserman, E (-1, November 30) How to Find New Customers and Increase Sales Inc.com. https://www.inc.com/guides/find-new-customers.html
6 *, N (2021, February 4) How to Develop a Sales Strategy Plan for Your Business. ForceManager https://www.forcemanager.com/blog/sales-strategy-plan/.
7 Vietnam information technology industry in 2019 is booming (n.d.) Retrieved April 24, 2021, from https://officience.com/business-economics/vietnam-information-technology-industry-in- 2019-is-booming/
8 Vietnam's it sector: 5 industries to watch (2019, November 06) Retrieved April 24, 2021, from https://www.vietnam-briefing.com/news/vietnams-it-sector-5-industries-to-watch.html/
9 Information and communications technology - Vietnam - For Australian exporters Austrade.
(n.d.).https://www.austrade.gov.au/australian/export/export-markets/countries/vietnam/industries/ ict.
10.Cross, V (2016, October 26) How to Evaluate Sales Strategies Small Business - Chron.com. https://smallbusiness.chron.com/evaluate-sales-strategies-20565.html.
11.SWOT Analysis: Definition and Examples Business News Daily (n.d.). https://www.businessnewsdaily.com/4245-swot-analysis.html.
12 Ireland, S (2020, October 13) Factors that may affect sales in your business TheBusiness Woman Media https://www.thebusinesswomanmedia.com/factors-may-affect-sales- business/.
THE STUDY
Overview on VACOM., JSC
2.1.1 General introduction of VACOM., JSC
- 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 Ấp Street, Phuc Xa Ward,
Ba Dinh District, City Hanoi
Transaction address: P2118, Starcity Building 23 Le Van Luong, Thanh Xuan District, Hanoi
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 rebranded as VACOM Joint Stock Company, marking over 17 years of growth and a strong market reputation Specializing in management software solutions, VACOM offers a range of products including accounting software, human resource and salary management tools, building management systems, tuition collection management, electronic invoicing, and digital signatures, catering to various economic sectors, from large corporations to small businesses and educational institutions.
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
Bringing VACOM online accounting software, school fee management software, building fees and m-invoice electronic invoices to businesses in all regions of the country.
VACOM is a leading provider of accounting and business management software, dedicated to delivering tailored solutions for various industries Our team of experienced engineers, finance professionals, and consultants ensures that businesses can achieve stability and efficiency through our innovative accounting software At VACOM, we are committed to excellence, offering exceptional service to meet the diverse needs of our clients.
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 customer We believe that every customer represents a distinct opportunity, and we are committed to providing exceptional service quality that aligns with their specific requirements.
Always provide new versions with high quality to serve the maximum needs of customers with the desire to bring satisfaction to customers
At VACOM, we foster a family-oriented environment where teamwork, support, and motivation thrive, enabling each individual to excel in their assigned tasks Our company is a welcoming space for sharing both joys and challenges, ensuring that every team member's voice is heard and valued This commitment to community makes VACOM a vibrant and fulfilling workplace for all.
VACOM is a nurturing environment that encourages innovation and creativity, allowing each member to freely develop their unique strengths The supportive community provides both emotional and financial backing for individual projects, fostering a culture where dreams can flourish.
As technology continues to evolve, VACOM is effectively expanding its market presence across provinces and cities by offering advanced, diversified management software that fully addresses the needs of businesses and organizations.
With over 12 years of experience, VACOM has served nearly 5,000 customers across the nation Recognized as a leading smart software solution, VACOM continuously evolves to incorporate the latest technologies while addressing customer needs The platform is dedicated to providing timely and optimal support services, ensuring that users receive immediate assistance whenever required.
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., JSC
The company's organizational structure is streamlined and operates under the leadership of the Chairman of the Board of Directors, who oversees all activities The hierarchy includes the Board of Directors, followed by various departments: sales, accounting, implementation, marketing, programming, and personnel administration Supporting the Chairman are two deputy directors, one responsible for managing the programming and development department focused on product research and development, while the other oversees finance and sales, aiding in effective corporate governance.
Figure 2.2.3.1 Organizational structure of VACOM., JSC
(Source: Administration and Human Resources)
The organizational structure of the company follows the online model with a fairly compact function, and focuses on the general direction of the Chairman of the
The company's operations are overseen by a Board of Directors, which includes various departments such as sales, accounting, implementation, marketing, programming, and personnel administration Under the Chairman, two deputy directors manage key areas: one focuses on programming and development, overseeing product research and development, while the other handles finance and sales, supporting effective corporate governance.
The management of the company's production and business operations involves developing and overseeing the execution of strategic plans This includes appointing and dismissing department heads, managing staff promotions, recruitment, layoffs, and ensuring adherence to disciplinary measures.
Responsible, operating and managing the operations of the sales department.
Manage the equipment department and take responsibility for the engineering of the projects.
Sales department Accounting department Implementation department
The sales department is tasked with identifying new customers, exploring market opportunities, and overseeing the company's sales operations and distribution channels It is responsible for creating weekly sales plans and reports, proposing new business strategies, and managing daily operations Currently, the department comprises 20 staff members, including a head of department and three team leaders These leaders manage three key product categories: accounting software, electronic invoices and digital signatures, and social insurance software.
The sales department has implemented 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 identifying potential customers In the while-sales phase, the focus shifts to engaging with customers who have shown interest, recommending the appropriate products, and ultimately closing sales contracts Following this, the installation of the software or program is carried out, either remotely via TeamViewer or directly at the customer's location Finally, in the post-sales stage, the company ensures customer satisfaction through warranty services and ongoing customer care.
Accurately record economic transactions and input data into accounting software to generate legal compliance reports Calculate profit and loss to evaluate business performance while effectively managing and monitoring company assets.
Implementing software for customers through direct training or teamview and technical support for customers using VACOM's services both during and outside office hours.
The role involves showcasing product images to customers via website development, managing advertisements, and engaging in trade fairs and exhibitions A comprehensive plan will be created to promote the company's image at each stage, guided by the directives of the board of directors.
Conducting research and development of new products and making reports to track work progress, debt collection situation of monthly specific editing contracts.
In charge of recruiting, training personnel and managing administrative affairs and collective trade unions, ensuring the health, material and spiritual welfare of employees in the company.
2.1.3 Operating results of VACOM., JSC
Table 2.1: Total number of contracts deployed
Trade Industry Contract - Import and
Total number of Software Contracts 175 233 284 344
Current situation of sales strategy at VACOM., JSC
2.2.1 Current activities to develop sales strategy at VACOM., JSC
Table 2.2.1.1: Frequency of activities to develop sales strategy at……
Never Seldom Sometime s Usually Always
Managing distribution channels/ agent systems
Making weekly sales plans and reports
Proposing new sales plans and organize daily sales management
Managing distribution channels/ agent systems
5 Making weekly sales plans and reports
2.2.2 Effectiveness of current sales activities at VACOM., JSC
Table 2.2.2.1: Effectiveness of current sales activities at VACOM joint stock company
Very bad Bad Ok Good Excellent
No % No % No % No % No %
Very bad Bad Ok Good Excellent
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
Very bad Bad Ok Good Excellent
No % No % No % No % No %
Warranty and after- sales customers care
Assessment on sales strategy development at VACOM., JSC
2.3.1 Achievements of sales strategy development at VACOM., JSC
In my research on the sales strategy development of VACOM Joint Stock Company, I discovered that the company has made significant progress Overall, the organizational structure, from leadership to departmental levels, is well-organized and stable, contributing to the consistent growth of the business.
The company establishes clear initial goals and a well-defined mission, ensuring that both management and employees work collaboratively towards a shared objective By focusing on key factors that influence its strategy, the company identifies important goals and solutions aimed at successfully achieving its targets.
VACOM Joint Stock Company conducts a comprehensive evaluation of both the external business environment and its internal operations By analyzing these factors, the company identifies the effects of the business landscape and suggests suitable strategies to effectively adapt to current realities.
The company aligns its strategies and goals with its capabilities while considering the impact of the external business environment Customer satisfaction with the company's operations, software, and services remains high Moving forward, it is essential for the company to develop more effective strategies to enhance its performance.
2.3.2 Limitations of sales strategy development at VACOM., JSC
In addition to the achievements that the company has made, there are still problems or limitations that VACOM Joint Stock Company must find solutions.
The most restrictive is the stage during the sales, specifically the first one is the search for potential customers Staff is definitely having a hard time with this.
The company faces challenges in effectively quoting, persuading customers, and closing sales contracts, resulting in dissatisfaction among some clients and low ratings Sales staff often lack the flexibility and creativity needed to address customer issues, indicating that sellers are struggling during this time To improve performance, the company should assess these challenges and implement additional training for its employees.
The company faces challenges due to employees' lack of real-world exposure, leading to difficulties in addressing and resolving customer issues effectively.
Moreover, in the face of the current situation of the Coronavirus pandemic, the world economy in general and Vietnam in particular are facing many difficulties.
The company's sales activities have been significantly disrupted, highlighting the ineffective implementation of policies regarding sales and disease response.
RECOMMENDATIONS SOME RECOMMENDATIONS TO
Orientations to improve business strategy development at VACOM Joint
From 2019 to 2020, VACOM Joint Stock Company aims to achieve growth and market expansion while maintaining high product quality The company focuses on delivering 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.
The scale of the company.
Expanding the market and discovering new customer sources are crucial for a company's survival Moving forward, the company will target a promising market by supplying products to primary schools, middle schools, and universities Effectively tapping into this sector could significantly enhance the company's growth and propel it further along its business journey.
The power of corporate brands
In today's competitive landscape, effective branding is crucial for success, particularly when entering new and emerging markets The strength of a company's brand significantly influences its ability to thrive in these environments As outlined in the strategic orientation for 2019-2020, prioritizing brand development is essential for achieving investment goals.
As the company expands its operations, recruitment and training become crucial, with a strategic focus on attracting highly qualified candidates from colleges and universities Additionally, the ongoing professional training plan for employees will be aligned with both job requirements and individual aspirations, ensuring a skilled and motivated workforce.
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 is known for its quick software provision and installation, along with flexible sales tactics that allow for customization based on customer requests Additionally, VACOM is attracting significant interest from various companies and sectors within the industry.
The distribution channel remains incomplete, and product pricing lacks competitiveness Additionally, sales and marketing efforts are weak, with inexperienced staff struggling to identify and persuade potential customers Furthermore, the existing equipment fails to support the company's growth and expansion needs.
Customers are placing a higher emphasis on product quality as the market experiences robust and steady growth Additionally, supplier capacity remains stable, ensuring a reliable supply chain Notably, major customer bases in Hanoi and Ho Chi Minh City are bolstered by numerous universities and companies, further driving demand.
The accounting software industry faces significant challenges, including increasing competition as more manufacturers enter the market and the instability of software pricing Additionally, slow restructuring and innovation often go unnoticed, while market volatility remains a critical concern due to the sensitivity of the information technology sector 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, adopting an effective development strategy is crucial for the business sector, particularly for VACOM Joint Stock Company This strategic choice enables the company to leverage its existing strengths while mitigating potential risks, ensuring that the focus extends beyond merely maximizing profits.
Market expansion and development strategy
Selecting the optimal strategy is essential, and while a dominant strategy can guide the approach, incorporating complementary strategies can enhance effectiveness The choice of these strategies hinges on the company's human resources After conducting a SWOT analysis and considering relevant factors, I have identified the "Sales Market Development Strategy" as the cornerstone for formulating a sales strategy for VACOM Joint Stock Company's stationery products.
The first is market expansion and development strategy
The market development strategy focuses on leveraging opportunities to enhance sales while ensuring product quality, brand reputation, and strong customer relationships VACOM Joint Stock Company emphasizes the importance of this strategy in the information technology sector, aiming for sustainable and long-term growth Their efforts include expanding 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, and Binh Phuoc to meet the increasing demands for quality and quantity in the market.
- 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 effort that engages various departments within a business, fostering acceptance and unity among sales teams These goals are crucial for executing a sales strategy as they guide resource allocation, serve as the primary means of assessing strategy implementation, and act as a vital tool for monitoring progress toward long-term objectives Additionally, they help prioritize initiatives for specific periods To ensure effectiveness, it is imperative that annual sales targets are thoughtfully developed, aligned with overarching goals, and supported by the sales strategy.
The third is policy development
Sales policies play a crucial role in addressing recurring issues and guiding enforcement within the sales team By clearly outlining expectations, these policies enhance the probability of successful sales strategy implementation Additionally, they define roles and responsibilities, motivating employees to engage actively in their tasks.
To enhance its market development strategy, VACOM Joint Stock Company has implemented several key policies aimed at strengthening customer relationships and understanding market needs Regular communication with customers is prioritized, with sales staff encouraged to engage after hours and report detailed insights on client interactions, market conditions, and competitor activities Business trips to underserved areas are promoted for sales staff, while company managers are mandated to conduct customer visits every six months Exceptional sales performance is rewarded with annual bonuses and company-sponsored travel, whereas underperforming staff must provide explanations 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—such as software, policies, sales teams, financial assets, and facilities—are distributed according to the priorities set by annual sales objectives Misalignment in resource allocation with these goals can severely hinder the strategic sales management process and jeopardize the achievement of sales targets.
Recommendations to improve sales strategy at Vacom Joint Stock company
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 strengthen relationships with traditional customers, it is essential to consistently enhance product quality, effectively execute business tasks, and actively listen to customer feedback Additionally, excelling in sales and organizing business operations plays a crucial role in fostering customer loyalty.
The company aims to unify construction market management by expanding its network across various provinces, both within and outside the Southeast economic region This involves continuous market research to understand customer preferences and develop relevant business strategies Additionally, the company plans to establish a sales and business management mechanism that integrates all economic sectors within the industry, leveraging regional advantages to enhance its presence in both urban and rural areas.
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 clear communication network, tools for information transmission, and a shared database accessible to all levels of the organization It is essential to implement regulations governing information access, security, storage, and inspection methods to minimize delays and errors Additionally, organizations should develop strategies to source and evaluate external information, creating a comprehensive list of valuable resources A shift in leadership perception regarding the significance of information systems is necessary, alongside methods to assess the effectiveness of these systems.
3.3.3.Planning to train company employees regularly
To enhance sales effectiveness, the company must implement a comprehensive training plan focused on developing essential skills for sales staff, including sales techniques, identifying potential customers, and strategies for effectively closing contracts Additionally, it is crucial to address the challenges faced by sales personnel and to provide them with increased access to customer leads, ensuring they have the resources necessary to succeed.
VACOM Joint Stock Company is currently advancing in its development and integration efforts, focusing on enhancing company management through strategic planning This approach marks a significant step forward in the company's long-term growth trajectory.
To elevate the company to a more sustainable level in today's competitive landscape, it is essential to implement significant changes in management and thinking Emphasizing human resources as the primary driver of development is crucial, as people possess the greatest potential among the advantages of time, earth, and harmony A strategic plan for human resource development, coupled with enhancements to the sales department, is vital for growth Additionally, the company's information systems must be updated to keep pace with market changes, and every improvement in business processes should be recognized and valued Most importantly, increasing capital is necessary to establish a robust financial foundation, enabling the company to address weaknesses and thrive.
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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
VACOM Joint Stock Company seeks measurable data to assess the effectiveness of its business strategy Your responses to the following questions will greatly assist in this evaluation Thank you for your valuable support!
A Current sales strategy at VACOM Joint Stock Company
1 Current activities to develop sales strategy at VACOM Joint 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 1
Managing distribution channels/ agent systems
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
Preparing: products information , quotes Search for potential customers
Very bad Bad Ok Good Very good
Accessing to customers in order to introduce products Proposal/quotation Negotiating/ convincing customers Creating a contract on the software and schedule an appointment to sign the contract
Installing program/ software Paying the bill with customers