Why Paragraph Is Important
By sales we mean, in chronological order, the final phase in the operational performance process or value creation process. Sales conclude the operational value cycle. It initiates the return flow of the invested funds and thus enables the continuation of production. The company’s output is utilized: material goods and services are sold. In everyday language, the terms “sales” and “turnover” are often equated with “sales”. In business terminology, the following definitions apply: While the sales encompasses all activities of a business or company that serve to sell manufactured goods and services on the market (these include Advertisingthe determination of the assortment and market research), sales and turnover are only a part of sales. For all sales-oriented activities also the summarizing term sales economy is used. The sale as a part of the paragraph is the pure delivery of goods and services against payment. Turnover is mainly the value expression of the goods sold. Expressed in a formula, this means: sales = quantity x price. The term “trade” covers all those businesses whose operating activities are predominantly focused on the sale of goods. distribution distribution. A distinction is made between wholesale and retail trade. The term Marketing is also frequently equated with sales. Marketing refers to a special corporate philosophy, a mindset of a company that is sales-oriented and strives to improve relations with customers through active measures.
The organization of sales
How sales are carried out, how they are organized in the company, what their scope should be, depends on various conditions:
- on the economic system,
- the position of the company on the market
- consumers,
- the type of products manufactured, and
- legal regulations.
The sales channels depend on these conditions (Fig. 1). Furthermore, the sales organization depends on
- the nature of the product (e.g. perishability),
- the production method of the company
- the size of the company
- the location of the company
- the company’s ability to deliver,
- the number of customers.
The company can choose the following organizational solutions for its business according to the above conditions:
- Establishment of a centralized distribution system (from one place) or a decentralized one (from several places).
- Sales are made through the company’s own companies or through external companies.
- Sales are made directly by the manufacturer or indirectly through retailers.
The behavior of consumers is decisive for the sales process. Their free purchasing decision is an important feature in a market economy system. Through demand, consumers primarily influence pricing. Sales planning is aimed at preparing the appropriate sales-promoting measures, the use of the appropriate funds for this purpose. Sales financing is aimed at promoting the sale of goods and services. It helps the customer. The customer can be: the final consumer, the sales company, such as wholesalers and retailers, or industrial enterprises as buyers of capital goods. The most common form of sales financing is supplier credit. For capital goods, leasing is becoming increasingly widespread as a financing aid. Supporters of sales can be
- the manufacturer itself,
- retailers and wholesalers,
- commercial agents, commission agents, commercial brokers,
- consumer associations,
- trade fairs, exhibitions.
Many people put either too many or too few paragraphs in their text, so that the reader is confronted with either many short paragraphs or a single large block of text. Neither is optimal. A paragraph should conclude a section of meaning, that is, complete a train of thought so you can begin the next one. However, it can also serve to illuminate an aspect from a different perspective or to add supplements to a fact that you had already described earlier. Meaningful paragraphs are important for the reader, because they help to understand the text better and to internalize its content. Paragraphs can organize your text in a way that increases its readability and, consequently, reading motivation. All the tips we present here refer to the current version of Microsoft Word included in Office 365 and Office 2019.
The aesthetics of the paragraph: Of whoremongers and shoemakers’ boys
When it comes to paragraph formatting, there are a few basic rules that should prevent the flow of text from being unattractively interrupted. Two phenomena stand out in particular: the whore child (also called “widow”) and the cobbler boy. Surely you have encountered them before: A cobbler’s boy is the first line of a new paragraph that stands alone at the end of the page. On the other hand, the last line of a paragraph, which stands alone at the top of a new page, is called a whorlet. To illustrate:
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Even more aesthetics: of soft and hard line breaks
Depending on the page format, a certain line length is preset in Word. If a word exceeds this line length, Word automatically inserts a line break: the word slides into the next line and the text can continue without you having to worry about it. In addition, there are soft and hard line breaks that you can set manually. Do you know the difference? The hard line break is created by pressing the Enter key. This way you start a new paragraph and finish your previous thought. In lists, you create a new list entry with this key, and Word automatically generates a new numbering or bullet character at the same time. The soft line break on the other hand only ends the current line, but not the paragraph. The difference becomes especially apparent if you have formatted your paragraphs to create extra spacing before and/or after them. With the soft line break, you do not leave the formatting within your paragraph, so no spacing can occur either. All you need is the key combination Shift + Enter. This is especially useful for address blocks or in poems, but also within a normal continuous text the soft line break can sometimes have its justification. But be careful: If you have formatted your paragraph in justified text, a soft line break can cause large gaps between the words in your line. However, there is a simple trick for this, too: If you insert a tab stop before the line break, the word spacing will remain as it should be. By the way: If you use the soft line break in lists, the whole thing looks like this:
- Example line 1
- separated from example line 2 by Enter, but separated from example line 3 by a soft line break.
As you can see, Word does not create a new bullet in this case. Experiment a bit with the different options – you’ll see that formatting in Word doesn’t have to be witchcraft.
More rules for line breaks:
- Avoid wrapping abbreviations: an “e.g.” at the end of a line should not be torn apart so that the “z.” is in one line and the “B.” in the next – you can prevent this with a so-called “protected space”, because this ensures that connections are kept together. You create it by the key combination CTRL + Shift + Space. The same applies to a date or time.
- You should also not separate individual words that you have marked (bold, italic, colored, in small caps or capital letters), because then the effect of the text markup will be lost
- Dashes should not be placed alone at the end or beginning of a line. The same applies to Quotation marks.
- Avoid, percent signs or currency symbols from their respective values. This also applies to all other values and measurements.
- Separate initials from the family name (e.g. J. K. Rowling). This also applies to the academic degreee.g. Dr. Meier. Walther von der Vogelweide, too, would appreciate it if his name were on one line if possible – and if there is no other way, please make sure that the name suffix (e.g. “von”) is not at the end of the line.
- Do not separate a house number from its street name and a postal code from its city.
- And in general, if you feel that compounds should not be separated by a break, listen to your instincts, because most of the time they will not deceive you.
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Sales is the final step in a company’s value-added process. The ultimate task of sales is to sell the produced goods on the market. The tools of marketing can help with this. It is only with the tools of sales that the goods are sold and profit is made. With the money earned, new raw materials can be purchased again and the value creation process starts all over again. In the following article you will learn what is meant by the term sales.
Sales – definition and meaning
Sales represent the last phase of the internal value creation. The previous two phases are the procurement and the production. The most important task of the selling is it to sell the goods produced before in the market. Means of marketing are used thereby. But marketing is not only one of the tasks in the paragraph. In sales, the assortment is determined, market research is conducted and the goods and services are distributed. Thus, sales is an important task field to bring the goods and services to the people. Through sales, new money comes into the company. With these new liquid means the creation of value process begins again.
Sales – Areas
As with materials management and production, the areas of responsibility in sales are diverse. The tasks of sales have become more and more complex and costly with the change from seller’s to buyer’s markets. Nowadays, companies have to actively sell their goods, as customers have a wide choice of products from other companies.
Sales – Marketing
Marketing is one of the main tasks of sales. Since marketing is one of the largest fields in sales, sales management is sometimes completely equated with marketing. Marketing describes all of a company’s tasks aimed at selling a company’s goods and services in the marketplace. The basic goals of marketing are the acquisition of new customers, the absorption of market power, the retention of old customers and the recovery of lost customers. In other words, everything that is directly related to the buyers of goods and services. Marketing is usually divided into the marketing mix. This is also called 4P (because of the first letter of the English terms). The marketing mix consists of:
- Product policy (product)
- Price policy (price)
- communication policy (promotion)
- Distribution policy (place)
Figure 1: Marketing mix
Product policy
Product policy is directly related to everything that has to do with the product or service itself. Everything from the scope of the product line, product design, to the packaging of the product is planned in this area of the marketing mix. This area works closely with production to deliver a product tailored to the customer’s needs. However, it is not only the development of new products or the variation of existing products that is decided in the product policy, but also which products are taken out of the assortment.
Price policy
In any case, the price must be such that it covers the costs of the product. However, it must also be ensured that the product generates a profit and is not too expensive for customers to continue to buy it. There are various strategies that a company can choose when it comes to pricing policy. These can vary – depending on whether the product is in the luxury segment or the low-price category. Prices also depend on the form of the market – if the company is a monopolist, it can set prices higher than in a competitive market.
Communication policy
Communication policy addresses the fields that many of us think of first when we hear the term marketing. This is basically about advertising measures. Advertising can be manifold. From classic TV advertising to modern influencer marketing. But advertising is not the only part of communication policy. Two other important fields are sales promotion and public relations. In sales promotion is about sales promotion. Measures for this are discount campaigns, increasing the attractiveness of the product (e.g. by training dealers) or offering special services. At public relations is concerned with public relations work. These can include PR events (e.g. open days) or sponsoring sports teams.
Distribution policy
Sales policy is also referred to as distribution policy. Distribution policy is ultimately about the distribution of goods and services. Are the goods distributed directly by our company or indirectly through distributors? If our company distributes the products itself, we also need our own stores, sales representatives and sales websites. If we distribute the goods indirectly, it is necessary to consider whether to serve the retail trade directly or have the distribution handled by wholesalers.
Sales – market research
Another task of sales is market research. Market research is a systematic gathering of information about the market. With the help of this new information and knowledge you can adjust your company to the market. Market research can answer many questions, which are relevant for the future strategic development of our company. It provides information about the current economic situation (business cycle, legislative developments), the development of the industry (new competitors, future prospects), the opportunities of the products (new customer segments, new foreign markets), new distribution channels or the effect of the current promotional activities. With the help of various management models, the market can also be analyzed, such as the product life cycle or the Boston Box.
Sales in cost accounting – calculation & turnover
The term sales is also of importance in business administration in connection with cost accounting. Thus, the price of goods multiplied by their unit prices is also called total sales, turnover or revenue. The quantity of goods sold within a period of time is called the sales volume. p = unit price x = sales volume U = sales or turnover If you subtract the costs from the turnover formula, you get the profit. Costs have been further divided into variable costs (kv – costs that are incurred for each product, such as material costs) and fixed costs ( KF – costs that are always incurred, regardless of production quantity). Figure 2: Graphical representation of the cost, profit and revenue function In a company, the sales volume is 1,000 units. The variable unit costs are 100 Euros and the fixed costs are 50,000 Euros. The unit price is 200 euros. The revenue is calculated as follows: Consequently, we have a sales volume of 200,000 euros The profit in this example is: profit of 50,000 euros. In cost accounting, small letters always denote unit quantities and large letters always denote total quantities. Example: unit costs k and total costs K.
Sales – The most important at a glance
- Sales is the final phase in the creation of value in a company. The goods and services are ultimately to be sold here. Marketing and market research are aids in this process.
- Marketing describes all the tasks of a company that are aimed at selling the company’s goods and services on the market. The marketing mix consists thereby of:
- Production policy (product) –> Design of the products,
- Price policy (price) –> design of the prices,
- communication policy (promotion) –> design of advertising measures,
- sales policy (place) –> design of sales channels.
- Market research is a systematic gathering of information about the market. With the help of this new information and knowledge it is possible to adjust the company to the market.
- In cost accounting, the term sales is used differently. It is either a synonym for sales or revenue, or it represents the quantity sold in the form of sales volume.
Frequently asked questions on the subject of sales
Sales has two meanings in a business context. On the one hand, it is the last stage of operational value creation and on the other hand, it can be a synonym for revenue. Sales represent the last phase of the internal creation of value. The previous two phases are the procurement and the production. The most important task of the selling is it to sell the goods produced before in the market. Means of marketing are used thereby. But marketing is not only one of the tasks in the paragraph. In sales, the assortment is determined, market research is conducted and the goods and services are distributed. The term sales is defined differently in business administration in connection with cost accounting. Thus, the price of goods multiplied by their unit prices is also called total sales, turnover or revenue. The quantity of goods sold within a period of time is called the sales volume. The tasks in sales can be manifold. For example, the tasks of marketing belong to it. These include pricing policy, product policy, communication policy and sales policy.
Final Sales Business Administration Quiz
Question What are the three stages of operational value creation? Show answer Answer The stages are procurement, production and paragraph. Show question Answer Sales represent the last phase of the internal creation of value. The previous two phases are the procurement and the production. The most important task of the paragraph is it to sell the goods produced before in the market. Means of marketing are used thereby. But marketing is not only one of the tasks in the paragraph. In the sales department the assortment is determined, market research is made and the goods and services are sold. Show question Why is Sales important? Show answer Answer Sales is an important field of activity in order to bring the goods and services to the people. Through sales, new money comes into the company. With these new liquid funds, the value creation process begins anew. Show question Is there currently a buyer– or a seller market? Show answer Question What is not a means of classical marketing–Mix? Show answer Answer personnel policy (personal) Show question Why is the Marketing–Mix also called 4P referred to as? Show answer Answer Based on the first letters of the English terms: product, price, promotion, place Show question What are Tasks in the product policy? Show answer Answer Product policy is directly related to everything that has to do with the product or service itself. From the scope of the assortment, product design to the packaging of the product, everything is planned in this area of the marketing mix. Show question What is none task of the product policy? Show answer question What can the price of a product depend on? Show answer Answer
- The cost
- The profit
- The willingness of customers to pay
- Whether it is in the luxury segment or rather in the low-cost segment
- The form of the market
Show question How may the price of a product under no circumstances be designed? Show answer In any case, the price must cover the cost of the product, otherwise it will generate a loss. Show question Answer Sales promotion is about promoting sales. Measures for this are discount campaigns, increasing the attractiveness of the product (e.g. by training dealers) or offering special services. Show question What is not a part of the communication policy? Show answer The design of the distribution channels Show question What is part of the distribution policy to consider? Show answer Answer
- How do we distribute our goods to our customers?
- Are the goods distributed directly by our company or indirectly through distributors?
- If our company distributes the products ourselves, we also need our own stores, sales representatives and sales websites.
- If we distribute the goods indirectly, there is a need to consider whether to serve retailers directly or to have the distribution handled by wholesalers.
Show question Answer Market research is a systematic gathering of information about the market. With the help of this new information and knowledge you can adjust your company to the market. Show question Which question can market research answer? Show answer It provides information about the current economic situation (business cycle, legislative developments), industry developments (new competitors, future prospects), product opportunities (new customer segments, new foreign markets), new sales channels or the effect of our current advertising measures. Show question Which of the following is not a synonym for the other? Show answer Question How do you calculate paragraph? Show answer Answer The price of the goods is multiplied by the sales volume. Show question Question How do you get from sales to the profit? Show answer Answer You only have to subtract the fixed and the variable costs from the sales and you get the profit. Show question
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