Poor sales planning at service team at w vietnam company

UNIVERSITY OF ECONOMIC HO CHI MINH CITY
International School of Business

NGUYEN TRONG DUC

POOR SALES PLANNING
AT SERVICE TEAM AT W VIETNAM
COMPANY
MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Dr. TRAN PHUONG THAO
Ho Chi Minh City – Year 2021


Table of Contents
CHAPTER 1: PROBLEM CONTEXT

1

1.1

Introduction about W Group & W Vietnam (WVN)

1

1.2

Industry Overview

2

1.3

Business Symptoms

3

1.3.1 Pump sale decrease

4

1.3.2 Services revenue cannot hit target:

4

CHAPTER 2: PROBLEM IDENTIFICATION

6

2.1

Preliminary analyzes

6

2.2

Potential Problems

7

2.2.1 Poor sales competitiveness

7

2.2.2 Poor sales planning at service team

8

2.3

Problem Validation

2.3.1 Poor sales competitiveness
2.3.2 Poor sales planning at service team
2.4

Main problem:

9
9
11
14

CHAPTER 3: CAUSE VALIDATION

16

3.1

Cause analysis

16

3.1.1 Unclear goal

16

3.1.2 Lack of market information

17

3.1.3 Inappropriate allocated resources

21

3.2

Cause validation

3.2.1 Unclear goal

24
24


3.2.2 Lack of market information

24

3.2.3 Inappropriate allocated resources

26

3.2.4 Main cause validation

27

CHAPTER 4 SOLUTIONS SUGGESTIONS

30

4.1

30

Alternative Solution

4.1.1 Training market research skills for service employees

30

4.1.2 Assign marketing role for someone who responsible for the information
systems between sales & services team

32

4.1.3 Find outsourcing for market information gathering

34

4.2

Solution Selection

37

4.3

Action Plan

38

4.3.1

Methodology

39

4.3.2

Design for WVN’s service team

41

CHAPTER 5: SUPPORTING INFORMATION

47

5.1

Timeline’s Interview

47

5.2

Summary of Interview Transcript

47

APPENDIX

54

REFERENCES

64


LIST OF TABLES
Table 1 : WVN’s total revenue ........................................................................................ 3
Table 2 : WVN company’s report 2020 .......................................................................... 4
Table 3: Services products and tasks ............................................................................... 5
Table 4: WVN company service department reports ...................................................... 5
Table 5 : Action plan’s timeline for WVN’s process (Prepared by author) .................. 46

LIST OF FIGURES
Figure 1: preliminary cause & effect tree ( consolidated by author) .............................. 9
Figure 2: the determining factors of diamond model( Porter,1990:127) ...................... 10
Figure 3: Service claim reports sample ......................................................................... 12

Figure 4: preliminary cause & effect tree ( consolidated by author) (Updated) ........... 15
Figure 5: Updated Causes & Effects Map ..................................................................... 16
Figure 6: Relationship Between Business Performance, Collaboration Between Sales
and Marketing, and Market Orientation(14) .................................................................... 21
Figure 7: Market Orientation(15) .................................................................................... 21
Figure 9 : Fishbone ( consolidated by author) .............................................................. 23
Figure 10 : S/O matrix from W Global ......................................................................... 24
Figure 11 : Service’s Team Model (Company’s Data) ................................................. 27
Figure 12 : An integrated model of the operations strategy formation process (Source(22))
....................................................................................................................................... 28


Executive Summary
Facing with the difficulty of cultural differences from the W group and its
member companies, WVN constantly had to innovate and find its own way to fix with
the group's development strategy. In addition, the year 2020 was heavily impacted by
the Covid-19 pandemic, making top-leaders even more resolute in innovating to
diversify. Specifically, the WVN’s technical services department must change to
accommodate more extensive services. The problem happened at the planning and
affected the performance of the whole department.
The mentioned above finding is located by several qualitative in-depth interviews
with directors, manager, and employees of WVN. Combining with analysis from
secondary data and related literatures, this paper is to step by step diagnose the most
concerned symptoms with its consequences, identify the real problems, then explore the
potential causes and main causes.
Applying theory-informed problem-solving in the organization to study and
analyze the current services team of WVN, the author aims to support the management
of WVN to understand about the real problem clearly and objectively. Subsequently,
this paper can suggest WVN the alternative solutions and action plans to gathering
market information to resolve the real causes, symptoms and negative impacts on the

department. Then, they can evaluate and choose the best and most applicable solutions
follow the 2020’s global strategy.


Acknowledge
In the process of researching and completing the thesis, I have encountered many
difficulties. To complete a master's thesis, besides my own efforts, it is impossible not
to mention the help of those around me. Therefore, I would like to express my sincere
thanks for everyone's support during this research to be able to complete my master's
program.
First of all, I would like to express my gratitude to my mentor Dr. Tran Phuong
Thao - who guided and mentored me during my master's research. Her enthusiastic
supports and advices helped me to complete my thesis well. Without such guidance, the
thesis could not have been carried out effectively.
The thesis is written about 3 months, so it is impossible not to mention the
enthusiastic help of the WVN's employees. I would like to thank all of you for creating
favorable conditions, supporting data and information to help me understand the
relevant issues during the thesis research, especially Mr.Duc-Managing Directors of
WVN.
Besides, I would also like to thank my parents, relatives and friends who have
always supported and encouraged me in life as well as during the completion of my
master's thesis.
Finally, my deep gratitude to all my friends during my time studying at ISB UEH
because their kind, help, concern, motivation. Their energy gave me strength and
supported me to overcome all difficulties during my study.
In the essay, due to my limitations in terms of knowledge and professional
qualifications as well as not having much practical experience, it is inevitable that there
will be shortcomings. I look forward to receiving valuable comments from teachers so
that the topic can be more complete and meaningful in practical applications.
Sincerely thank!

1

CHAPTER 1: PROBLEM CONTEXT
1.1

Introduction about W Group & W Vietnam (WVN)
WGroup was founded in 1872 as Kupfer- und Messingwarenfabrik in Dortmund.

Today, the W Group is one of the world's leading premium suppliers of high-tech
pumping systems for building services, water management and industry. WGroup
provide customers with innovative and energy-efficient products, needs-based system
solutions and a variety of services.
With that foundation, W Vietnam Ltd (WVN) was officially established in July,
2011 (business license: 411043001659) under directly investment from WSE. With
experienced sales representatives and technicians and global in-depth development
strategies, WVN offers not only pumping products but also technical solutions,
installation and warranty, and good after-sales service. WVN also offers testing
pumping service at the workshops and this allows WVN to conduct large-scale projects
that have high technological requirements.
WVN: Providing repair, maintenance and installation services for products/goods
distributed by the Company to distributors in Vietnam in the following fields:
 Building Services
o BSR: Building service residential
o BSC: Building service commercial
 Water Management (WM)
 General Industry (GI)
Vision: WVN, the water solution leader for a smart and resource efficient world
Mission: Inventing and managing responsible water solutions that benefit

everyone, everywhere


2

Values:

Organization chart W Viet Nam

1.2 Industry Overview:
The water pump system is critical to any manufacturing process or plant to
function effectively. Industrial pumps are used for various industrial applications such
as power plants and petrochemicals, to directly support the production and power
generation processes, and typically operate for long periods of time. Base on the data
collected by Research & Market’s reports, it is estimated that about 27% of the energy
consumed by any industry is made up of motor-controlled equipment. This gives
industrial pump manufacturers the opportunity to improve efficiency and launch new &
innovative products. In the Asia Pacific (APAC) region, opportunities are open to
factories and pump companies for the growth of the automotive, construction and
industrial zones. The water pump industry in APAC is expected to decrease 18% due to
the Covid-19 pandemic, accompanied by fierce competition from low-cost factories is
also a problem for industrial pump market development here.


3

1.3

Business Symptoms
This research is focused mainly on the profitable divisions for WVN. As

mentioned above, facing with the Covid-19 pandemic WGroup considers it as a
challenge. During in-depth interviews and information given from research, severely
perceived symptoms attract the attention of leaders, team leaders and researchers to find
problems, causes, and solutions to the problem as soon as possible.
Through initial observation, two departments under the most pressure in WVN
are also the two parts that bring profits to the company. In addition, the paperwork or
the relatively complicated process of the company when WVN is under the management
of a foreign corporation is also a knot.
After first meeting with directors and study the secondary data from internal
reports from WVN 2019 & 2020, it is found that there is one symptom: Revenue
decrease in 2020. The symptom is diagnosed and analyzed in details as below.
Unit: Billions VND

Total Revenue
160
140
120
100
80
60
40
20
0
Total Revenue

2018

2019

2020

129

145

77

Table 1 : WVN’s total revenue

The decline in sales through the annual report presented above is also the problem
that WVN’s director is responsible for presenting to W Group. The author had a chance
to participate in an online meeting of the WVN director and the group noted that WVN
sales in 2020, even decreasing in sales revenue but on the positive way is the innovation.
This is not only the water pump business but the 2020 annual report also record revenue


4

from WVN's services department. Based on this information, the author continued to
analyze symptoms into 2 parts as below.
1.3.1 Pump sale decrease
Unit: Millions VND
200000
180000
160000
140000
120000
100000

80000
60000
40000
20000
0

2018

2019

2020

Actual revenue

129000

145199

76364

Target

128000

148000

173000

Table 2 : WVN company’s report 2020

According to the company's financial statements, pump sales are down by nearly
50% compared to the figures given above for the whole industry (- 4%). (Source:
www.worldpumps.com). This symptom that needs to be studied and analyzed.
1.3.2 Services revenue cannot hit target:
At WVN, there are a total of 5 products listed in the products catalog of the services
department:
Service products
1. Maintenance & Operations

Task
Services apply for used products (annual
checking)

2. Installing & commissioning

Installation and testing for the first time


5

3. Optimization & replacement

Offering solutions to optimize or replace
with new products

4. Repairs

Repair customer’s water pump

5. Spare parts

Selling spare parts as customer’s demand
Table 3: Services products and tasks

However, as reported below, it only recognizes the sales of a service division that
mainly focuses on selling pump replacement parts.
Unit: Millions VND
Service products

Target 2020

Actual 2020

1. Maintenance & Operations

-

2. Installing & Commissioning

-

3. Optimization & Replacement

1 300

-

4. Repairs

-

5. Spare Parts

1 114.3
Table 4: WVN company service department reports

Up to now, the COVID-19 pandemic is still happening very complicatedly in
many countries around the world, negatively affecting major economies such as the US,
China, Japan, the European Union ... In Vietnam, in 2020, COVID-19 affects the
economy and makes our country's economic growth fall to the lowest level in 10 years
and this affects the needs of the customer to use the water pump. Therefore, the author
will focus on analyzing symptoms in the service department of WVN Company. This
has been approved by WVN Directors (Mr.Duc) when the decline in pump sales is a
common problem of the whole group at the present.


6

CHAPTER 2: PROBLEM IDENTIFICATION
2.1 Preliminary analyzes:
In order to identify the problem existing in the company, these following steps
was taken:
 Analysis reports gather from all departments of WVN
 Ask for instructions from Teacher to define the right way
 Group meeting with the company managers and staff to gain
understanding about the company’s symptoms and potential problems.
 Reviewing the literature and further researches related to the identified
symptoms and combining them with the current data of the company.
 Finally, conduct an in-depth interview with the people in charge for more
details in order to fully comprehend the current situation, cause and

problems.
With the idea that has been approved by the director, an interview plan was
created by the author with the participation of personnel in the company as follows:
People

Title

Purpose

Mr. Duc

Managing Director

Overview

about

WVN

company
Mr.Vinh

Mr.Sy Chung

Sales manager

Ask for the problem in sales

(South Vietnam)

Confirm some information

Sales manager

Get data from sales reports

(North Vietnam)
Mr. Dat

Technical

service

leader
Ms. Tram Dang

team Interview for problem in
service department

Administrator – Human Ask for WVN’s company
resources staff / Marketing procedure

Ms. Quyen

and

common

Staff

issues

Finance controller

Get data from financial
reports


7

Ms. Tram Vo

Sale Administrator

Confirm information

In-depth interviews with managers from relevant departments around the
symptoms were carried out to develop the Initial cause-effect map. There are some
potential problems:
-

Poor sales competitiveness

-

Poor sales planning at service team

2.2 Potential Problems
2.2.1 Poor sales competitiveness
According to Singh & Rajesh K(1) analyzed some potential problems caused by

the company's strategy. In which, the core competence of the enterprise will create a
sustainable competitive advantage and according to Michael E. Porter(2) "Strategy is the
art of building solid competitive advantages for defense".
Specifically, according to Mr. Vinh – sales managers, who shared that
“The decline in sales was analyzed in two directions: the drop in customer’s demand in the
general market and the relatively poor competitiveness of WVN: price and delivery time are
often the two factors affecting customers the most”

To learn about this issue, the author read the company's profile. Thereby, WVN's
customers are mainly large water projects: pumps for tall buildings and water projects
for industrial or agricultural zones. These customers often apply the following bidding
cases:
Step 1: Open bidding
Step 2: Competitive offering
Step 3: Designation
All customers are mostly concerned about the price and delivery time when this
is confirmed by Ms.Tram Vo (Sale administrator in OM team) – the one who has the
responsibility to open contract and finalize the terms with the customers.
Discussed about this idea – Mr.Duc (Director) comments:
“To analyze the competitive factors, we need to learn about the business model at the company
when WVN has almost the same model as competing companies in the same segment in Vietnam.


8

Typically, the production in factories abroad and shipped to Vietnam. W Group defines products
in the high customer segment with good quality. This may prove to be a high price tag. However,
delivery time at WVN is usually longer than 10 to 15 days for other customers (This is
information gathered from the market and there is no data to verify)”

The obvious consequence of the group's business strategy makes it difficult to
reach the customers. Mr.Vinh’s report (Sales Manager) that are sent directly to regional
managers often mention about two issues : high price and delivery time. (confidential
company reports).
2.2.2 Poor sales planning at service team
Firstly, data is provided by Ms.Tram Dang (Admin / HR specialist) about duty
of service team at WVN:
 Technical support for sale department and customer
 Solving problem for the service calls at site or guide clients/ dealers how
to perform correctly. Make customer satisfaction
 Following to the management’s request
In particular, the staff at the service department at WVN are recruited by
specialized skills in technical and often focus on solving the problems with water pumps
“at site” (place of the projects)
Secondly, after understanding the job nature of the service department. The
author has a talk with Mr.Dat (technical service team leader) about the problem being
encountered. Mr.Dat said:
“2020 is the first year that the service department at the company has the sales target, so it is
inevitable to be surprised about the plan to sell the services that the company has. In addition,
the service department only focuses on the problems that customers have and does not actively
introduce products that WVN has”

The author continues to question why the service department only focuses on
selling parts and does not record reports on other services.
“WVN only has price list for the necessary spare parts for current pump products and lacks
other service pricelist.” – Mr.Dat said


9

In conclusion, the service department is the technical staff and only focuses on
their main job of solving the problems that customers have. Based on the information
above, a comments shared by Davis WN(3) summed up that the potential problem is
planning, it may effects the performance of the team bases on some evidences provided
above.

Figure 1: preliminary cause & effect tree ( consolidated by author)

2.3 PROBLEM VALIDATION
2.3.1 Poor sales competitiveness
Firstly, competitiveness is showing the strength and advantages of business
entities compared to competitors. Competitiveness must be compared with specific
competitors, specific products and goods in the same market and at the same time.


10

Competitiveness is considered at three different levels, including national
competitiveness, enterprise competitiveness, and product or service competitiveness. In
which, the criteria for assessing the competitiveness of products include basic criteria
and specific criteria. The basic criteria include product cost and price, product quality,
distribution system and business reputation.

Figure 2: the determining factors of diamond model( Porter,1990:127)

Secondly, Dogan B.(4) research based on M.Porter's diamond model (Figure 2)
has concluded that two factors have the most influence on competitiveness: Demands
conditions & Government.
According to a report from Mr.Sy Chung (Sales Manager – North Viet Nam)
“The sales declines in Vietnam: explained by political factors when major projects in 2020 are

stopped due to delayed legal documents. It is difficult for investors to obtain construction
permits, leading to a decrease in customer demand.”

Thirdly, “W is going digital” – the development strategy of W Group is shared
from Mr.Duc (Director) as the group focuses on digital transformation in processes and


11

operations. This indirectly indicates that WVN is focusing its strategy on digital
transformation. Newall JE(5) also confirmed that in his research, employees'
contributions to competitive advantages are recognized by senior leaders. However, this
is related to the priority of the development strategy.

In addition, Mr Duc also shared:
“In the water pump market, technology has been saturated in leading foreign corporations,
such as: Grunfos, Ebara, W Group,.... Projects in Vietnam often compete directly on price: I
often consider discounting more than the company's regulations. In addition, the problem of
long delivery time at WVN has been considered by the group when building a factory in
Malaysia to improve the distance between importing goods to Vietnam. It has been established
in the middle of 2020”

Source: WVN’s Company profile

2.3.2 Poor sales planning at service team
As the author mentioned above, 2020 is the first year the service department has
set up a sales KPI, contributing to pressure on the service department. Objectives in
business are all based on finance, which means that these activities must be profitable
for the company(6). When the target is not met, it is obvious that WVN's service
department is responsible for the poor performance.

Responding to the author on this issues, Mr.Dat shared:
“Like the organization chart structure, the lack of human resources that makes the job always
under high pressure and poor performance can also be the result of this. However, the results
recorded from customer feedback are always at a good level.”


12

Figure 3: Service claim reports sample

In terms of handling technical issues, the service department is handling customer
issues very well. However, in terms of business (trading WVN's services), it should be
considered. Reports from the department will have full customer’s information. The
solutions are given in the report and will be handled as soon as possible. This is
unreasonable in the calculation of work result. As Ackoff RL(7) shared a management
mistake “Managers who don't know how to measure what they want will turn to accept


13

what they can measure.” Or two authors Monica & Mike (8) shared the following “Some
targets were based on the wrong performance measures”.
Mr Dat shared more:
“The preparation for service department staff is not good, there is no specific plan for staffing,
there is a lack of price lists for each type of service. In addition, from a personal point of view,
there is a lack of investment in company resources (in particular, unsecured inventory)”

The author changes the analysis to explain the effect of planning on work results.
In that way of analyst, planning is the first of the four functions of management:
planning, organizing, leading, and controlling. Planning is a very important function for

every manager because it is associated with the selection of goals and future action
plans, helping the manager to determine the other functions remaining to ensure that the
objectives are achieved. Up to now, there are many concepts of the planning function.
With each perspective, each different approach has its own concept, but all try to express
the true nature of this management category.
From a decision-making perspective: “Planning is a specific type of decisionmaking that defines a particular future that managers want for their organization”.
Management has four basic functions: planning, organizing, leading and controlling.
Planning can be likened to starting at the root of a large oak tree, and from there sprout
the "branches" of organization, leadership, and control. From this point of view,
planning is the primary and vital function for every manager. With the process approach:
Business planning can be considered as a continuous spiraling process with
increasing quality from the time of preparing the plan to the time of preparing to
organize the implementation of the plan in order to bring the business's activities to the
next level accordance with the stated objectives.
According to this approach, planning is viewed as an on-going process that
reflects and adapts to changes taking place in an organization's environment.
environment by pre-defining action plans to achieve specific organizational goals.
Managers need to plan because planning shows the direction of future operations,
reduces the impact of environmental changes, avoids waste and redundancy of


14

resources, and design Establish standards for ease of inspection. Currently, in the market
mechanism, it can be seen that planning has great roles for businesses. Include:
-

Planning has the effect of reducing the instability of the business, or
organization. The instability and change of the environment make planning
indispensable and necessary for every business, every manager. Planning

forces managers to look ahead. Anticipating changes in the internal business
as well as the external environment and considering their effects to come up
with appropriate response solutions.

-

Planning reduces duplication and wasteful activities of the business. When
planning, the goals have been determined, the best ways to achieve the goals
have been selected, so it will use resources effectively, minimize costs
because it actively in the planning activities. operate efficiently and
appropriately.

-

Planning will set standards to facilitate highly effective testing. Once an
enterprise cannot determine what it has to achieve and how to achieve it, of
course it will not be able to determine whether it has achieved the goal or not,
and also cannot take measures. methods to adjust promptly when deviations
occur.

Thus, planning is really important for every business, according to K Trong(9)
“Without a plan, managers may not know how to organize, exploit the people and other
resources of the business effectively, or even have a clear idea of what they need to
organize. function and exploitation. Without a plan, managers and their employees will
find it very difficult to achieve their goals, they don't know when and where to do what.”
2.4

Main problem:
After conducting a detailed interview with managers and analyzing company data

statistic, Poor sales planning is considered as the main problem of WVN. Mr.Duc states
that will lead to countless impacts on the service department. It can be most easily seen
in people when this directly affects the staff in the department, leading to poor
performance in the service department. The updated cause & effect map was created by
author as below.


15

Figure 4: preliminary cause & effect tree ( consolidated by author) (Updated)


16

CHAPTER 3: CAUSE VALIDATION
This essay continues to research for the potential causes and validate them to
identify the main cause to create alternative solutions to resolve the problem for WVN.
3.1 Cause analysis
A plan is a set of goals, solutions and tools to achieve goals for a given system.
An organization's plan can be viewed from many different perspectives. In particular,
according to the specific level the plan includes strategic plan, planning, policies,
procedures, rules, programs, projects and budgets. Planning must be well thought out,
organized, must be defined according to a relatively uniform process that includes
environmental analysis, objectives analysis, alternative analysis, evaluation and
selection of alternatives, optimize and decide the plan. Thereby, the author will analyze
under 3 different angles of the problem of poor sales planning at the service department.
Along with that, Brian Kennel

(10)

points out that the signs that lead to poor sales

planning are: Unclear goal, Lack of market information, Inappropriate allocated
resources.

Figure 5: Updated Causes & Effects Map

3.1.1 Unclear goal
Lack of knowledge in goal setting
Business goals are an important component of creating objectives and positioning
their organization for long-term success. Setting company goals and developing separate


17

targets to assist company achieve each goal will considerably improve their capacity to
attain those goals.
Business goals are goals that a company expects to achieve over a certain period
of time. We may define business objectives for their whole organization as well as
specific departments, employees, managers, and clients. Goals are usually used to
symbolize a company's wider purpose and to provide an end-goal for personnel to work
toward.
Setting company goal is critical for a variety of reasons, including the following:
 Provide a method for determining success.
 Ensure that all employees are aware of the company's objectives.
 Provide employees with a clear grasp of how decision-making contributes
to the achievement of the company's objectives.
 Ascertain if the firm is on the proper track.
Therefore, goal setting also requires the necessary skills. According to Latham &
Gary P (11) in their research, the impact of goal setting skills affects many factors when

setting unclear goals will lead to a lack of direction and cause many problems in the
organization.

3.1.2 Lack of market information
Company does not have specialized personnel for marketing
Firstly, according to the American Marketing Association (AMA), “Marketing is
the activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and society at
large”. Therefore, Marketing can be understood in a broad sense as the entire business
activities of an enterprise, there are also activities from forming an idea to produce
goods/services to implementing production and consumption so that those goods can
sell well in the market. Along with advertising, promotion, pricing and distribution are
the basic functions. The function of the Marketing department such as: bridge the gap
between inside and outside the business, between products and customers, between
product attributes and customer needs. It can be said that marketing is an indispensable
activity if businesses want to succeed in the market mechanism.


18

Secondly, professional services organizations have had tumultuous ties with their
marketing departments at times. This has all too frequently resulted in inflated
expectations, disillusionment, and the marketing function's marginalization. A strong
marketing team may make a significant difference in a modern professional services
organization. A marketing department that is well-staffed and well-functioning can drive
growth, profitability, and a premium valuation. In sum, Harrison(12) stated that the
knowledge from personnel responsible for marketing strategy can get the huge impact
to business plan.

Apply poor marketing strategy

According to Moorman(13) Marketing Department has 6 key functions and tasks
as follows:
-

Ideation, building and brand development: This is an important function of
the Marketing department, helping the image of the business to be consistent
and convey to customers clearly. With this function of Marketing department,
businesses will create a position in the market.

-

Research and develop products: Understanding their products and the needs
of the consumer market, the Marketing department will help businesses come
up with an effective product consumption direction that saves a lot of costs.

-

Creating and implementing Marketing strategies: This is the task of helping
customers better understand the products and business areas of the business.
Thanks to these strategies, the operation and business efficiency of the
business is increased.

-

Establish media relations: This is a sustainable brand building plan and also
a crisis management tool that businesses may encounter. The goal is to create
a good image for the business in the eyes of the public.

-

Managing employees of each department: The Marketing Department has the
function of operating its department's employees, making work plans,
checking, monitoring and evaluating the working efficiency of each
employee.


19

-

Advise the Board of Directors on each strategy: In order to bring about the
best product consumption effect, the Marketing Department advises the
Board of Directors on the direction of Marketing development. The
department will coordinate with other department in the business to deploy
the distribution of products and services in the most productive way.

Any business must have a marketing strategy. It raises consumer awareness and
gives further information about the company's products or services. An effective
marketing method is completely aligned with the company's future marketing strategy
and objectives. However, most firms, for whatever reason, utilize outmoded marketing
tactics to advertise their items to clients, which can harm company's popularity and
revenue.
-

No or limited marketing expertise: Any business strategy should be carefully
prepared to align with the goals and marketing resources available. Most
businesses, on the other hand, are overly ambitious and frequently use
marketing strategies that are incompatible with their industry. This frequently
results in the waste of resources and the misappropriation of monies that could
be utilized for anything else.

-

Lack of direction: If a marketing campaign fails to target the right customers,
it will be less effective. Instead than focusing on client preferences and
options, most marketers want to impress their bosses. Such marketing
methods will have no impact on purchasing decisions and behavior patterns
if they are not tailored to the needs of customers. It will only result in a drop
in sales.

-

Visual Objects estimates that over 40% of small businesses in the United
States do not have websites. Considering the internet's power, the figures are
staggering. Even individuals who own websites do not understand how to take
use of the benefits that come with internet marketing. The majority of them
do not keep their websites up to date.

Another thing that these companies overlook is the effective use of SEO and PPC
tactics to boost their online exposure and attract more traffic to their websites. Failure
to do so will result in customer loss and low revenues as a result of the failure to attract