Procurement, Market Research, and Marketing Strategy Essentials

Sourcing Function

The objective of the sourcing function is to provide the production department with necessary materials. The procurement function is composed of three aspects: procurement, storage, and management.

• Procurement: In charge of making purchases required by the production department, considering price and quality.
• Storage: Saving products purchased in warehouses to meet production needs.
• Management: Developing an inventory management system to determine target stock quantities and order pacing to cover company production and commercialization needs.

Classification of Inventory Costs

• Ordering Costs: Costs incurred in carrying out orders.
• Acquisition Costs: The price of the product purchased from the supplier.
• Maintenance Costs: Costs associated with maintaining a specific volume of stock in the warehouse, including administrative operations, physical space, and financial costs.
• Stockout Costs: Costs resulting from a lack of inventory.

Market Study

1. Definition of the Investigation Target: Before any study, it must be clear what information is needed and the desired outcome.
2. Research Model Design: Determine how to carry out the investigation using internal company information, official statistics, or external investigations.
3. Data Collection: Often a difficult and expensive process, categorized into:
   • Raw Data: Unstructured information collected specifically for the study.
   • Secondary Data: Structured information with fast availability.
4. Data Classification and Framing: Organizing necessary data using statistical procedures.
5. Analysis and Interpretation: Processing collected and classified data to analyze results.
6. Submission of Results: Preparing and submitting the final report reflecting the study's conclusions.

Stages of a Marketing Plan

1. Analysis of the Situation: Includes prior actions, environment study, image, qualified staff, distribution network, competition, product, and SWOT analysis.
2. Determination of Objectives and Strategies: Setting quantitative and qualitative goals.
3. Elaborating the Plan: Defining targets, general and specific objectives for marketing variables, global assessment, and designating responsibilities.
4. Plan of Action: Defining product, price, promotion, and distribution channels.
5. Budget Control: Elaborating and monitoring the budget.
6. Methods: Establishing control methods.