A commercial director can have a different field of activity depending on the industry affiliation of the company, profile and scale of its activities. However, in any case, he plays a key role in the enterprise management system. He oversees the strategic planning of the company's work and the implementation of the sales plan, builds relationships with suppliers, determines the sales and logistics channels, controls budgeting in this area, and also coordinates the implementation of the marketing strategy. It is this top manager who is responsible for the formation of the final performance indicators of the enterprise, including the maximum increase in the revenue side of the budget.
Often, the commercial director maintains close ties with shareholders, since he plays one of the key roles in the management of the company. In organizing sales training, the sales director collaborates with the HR director. In matters of determining the sales strategy, pricing policy and in other matters, the commercial director cooperates with the financial director.
Profession functionality
1. Together with the General Director and shareholders - long-term and current planning of the company, ensuring the efficient use of its resources;
2. Together with the CEO and shareholders - developing a strategy to expand the portfolio of brands, looking for new opportunities to develop the company's presence on the market and free niches for the company's products;
3. Determination of the company's trade policy, taking into account market research and past sales performance, determining the geography of the company's work, formulating and implementing regional sales strategies;
4. Creation and training of an effective sales team;
5. Selection of sales channels, creation and / or management of a distribution network, dealer network, direct sales department management;
6. Sales planning, responsibility for the implementation of the sales plan;
7. Coordination of work (or direct participation in work) with key clients, including negotiation;
8. Together with the marketing department - development of assortment and pricing policies, various programs to increase sales (trade marketing: special promotions, including their budgeting; discounts; bonus programs, etc.). It is the commercial director who is responsible for the successful implementation of these programs and policies;
9. Organization of logistics - delivery, warehouses, packaging, etc. The key point of the logistics function is forecasting and planning future needs, creating the necessary structure for the delivery of goods, as well as finding new suppliers of transport and warehouse services;
10. Participation in the development of the company's budget for the financial year (including marketing and sales budgets), approval of budgets and tracking their execution;
11. The commercial director is also responsible for commercial purchases, uninterrupted work with suppliers, selection of suppliers and services, coordination of all supply issues.
12. Organization of a system of advanced training for sales managers.
Features in companies of different industries
Features in companies of different sizes
If the company is small, then marketing is partly part of the functional responsibilities of the commercial director. Thus, in a small company of any profile, the functions of sales, purchasing and marketing can be the area of responsibility of one specialist. The number of departments subordinate to this top manager may vary depending on the specifics of the business. How to create a commercial department and manage it professionally, read the Executive.ru publication. In a large company, the above three areas are supervised by line directors who report to the commercial director.
Requirements for the candidate: competencies
Experience of effective work in the industry. Experience of effective work in sales. Higher education, preference in economics or business. The advantages are quantitative knowledge, fluent English. An MBA diploma is also an added benefit.
The commercial director must constantly work on improving his qualifications. Regular passage of various kinds of trainings and seminars on the profile will be an undoubted plus.
Requirements for the candidate: personal qualities
Responsibility and focus on results, brilliant negotiation skills, communication skills, ability to manage a team, thoroughness, structuredness and consistency in work, leadership qualities, the ability to make decisions in non-standard situations, the ability to generate new ideas, strategic thinking, entrepreneurial spirit, resistance to stress, high efficiency ...
Compensation level
The range is from $ 5 thousand to $ 15 thousand per month, depending on the scale of the company and its location. The commercial directors' bonus is usually not less than 20% of the base remuneration, the most common rate is 25-50%, sometimes up to 100%. The bonus calculator can be tied to the fulfillment of the sales plan. Including additional conditions can be added to the bonus calculator: expansion or renewal of the product line, sales growth in a certain segment or region, indicators of sales profitability.
First of all, the commercial director is responsible for all issues related to clients and the main profit of the company. But there is always confusion about job duties of the commercial director.
The point is that in different companies, commercial directors perform different functions. Also, very often two different positions are confused - commercial director and sales director. The maximum segment where a commercial director can work is the simultaneous management of sales, logistics, procurement and marketing services. It is also often thought that a sales director is solely responsible for managing the sales department.
Where Sales Director Skills May Be Needed
Today, there are a lot of vacancies for this position, but the requirements for a commercial director are not small either. The whole specificity of vacancies for this position is that they have been open for a very long time. From this it follows that the search itself and the further selection of candidates takes a very long time. Also, vacancies are very often vacant due to the fact that new commercial directors cannot hold out for a long time in their place (up to a year of work). All this is due to the complexity of building relationships with the founders of the company.
Most often, the vacancy of a commercial director is open in weakly structured companies in Russia. The reason is that such companies have never had a commercial director before. The volume of transactions within the company is gaining volume and the management of the company by the same methods becomes practically ineffective. As a result, the owners of the company are trying to improve the level of efficiency of the company by bringing in experienced managers and commercial directors.
It also happens that during the entire existence of the company, it had only one commercial director, who was one of the founders of the company or an employee who worked from the beginning of the opening of the company, and then was promoted to CEO and now a new commercial director is required. In this case, strict requirements will be presented to the new candidate - management literacy, new methods to achieve the set goal.
When it comes to structured companies, then mood or personal sympathies will play a lesser role than the level of professionalism. In this position, a commercial director is a person who performs clearly defined functions in the structure of a company's business processes.
Most often, only Western companies have any clear requirements for education or skills. As for Russian companies, they just want to find a “magician”. That is, they need a person who will come and personally solve all the problems and raise the company to a new level.
The main responsibilities of the commercial director
The main responsibilities of this position include the following items:
- The commercial director must organize the management of the material and technical supply of the enterprise, as well as engage in activities for the storage, transportation and further marketing of products.
- The director must coordinate the development and draw up long-term plans for the logistics and subsequent marketing of products.
- Manages the development of all regulations and quality standards for manufactured products.
- Recommends further development strategies to department managers and finance specialists. Controls their quality of work.
- Responsible for the timely delivery of estimate and financial documents, calculations, reports on the implementation of the set plan.
- Keeps track of financial and economic performance and spending of funds
- Responsible for negotiations on behalf of the company with various counterparties of the company on any business or financial activities
- Speaks on behalf of the company at trades, stock exchanges, advertising campaigns and other events
It is also worth noting (as we said above) that in some companies the duties of a commercial director may differ. The list of his duties may also include:
- Developing a plan to promote a new product or service
- Discussion of the budget and its calculation together with the CEO
- Control all distribution channels
- Creation of a program for material motivation of employees of the enterprise
- Participate in the creation of a new personnel policy for the company
- Monitor sales reporting
- Negotiate with clients
- Develop new methods of pricing policy
- Make the final decisions on advertising campaigns
It is worth noting here that if a person gets a job for this position in a foreign company, then he may be required to:
- MBA diploma
- Have a good command of English
- Have at least five years of management experience
Functions of the commercial director
As we already understood, the main tasks of the commercial director are the organization and direction of the activities of all divisions, which are in his segment. It is worth saying that his responsibilities directly depend on the specifics of the industry of the company and the size of the organization.
In the course of his work, the commercial director interacts with various heads of different departments of the company. This list may include: accounting, marketing department, IT, logical department, finance department. Most often, the main functions of this position are joint strategic planning with different departments, the formation of marketing, pricing, financial, personnel policies. He is also obliged to control the sale of goods and plan further sales. Its functions include monitoring the competitive environment and the market for goods and services. The CFO must also expand and oversee all supplier relationships and budget for the entire business unit.
Personal skills of a commercial director
It is worth telling in more detail here, since personal qualities are one of the key points when choosing a person for this position. The personal qualities of a commercial director should include a specific management style, delegation of authority, and communication skills with company employees. Naturally, such a position requires a high level of communication and the ability to properly manage personnel. Any company will be interested in people who have general management skills and the ability to organize forecasting and budgeting.
Despite the above, each company has its own criteria by which the personal qualities of a commercial director are assessed. Everything will directly depend on the current goals of the company and on the period of its development. So, it all depends on the life cycle in which the organization is now located. Depending on this, the requirements change not only for managerial positions, but also for all employees of the company. We will tell you about each life cycle of the company, and what personal qualities a commercial director should have in each of the cycles.
Initial stage of development
The person should have successful experience in building business models of companies from scratch. He must be able to form a new experienced team. Among personal qualities, during this period, innovation, creativity, rigidity in decisions, structuredness will be appreciated. At this stage, the commercial director must be able to make the necessary decisions quickly and efficiently. Have an objective point of view to fight competitors.
The heyday of the company
During this period, sales are growing, there are already ideas for future periods in general market trends and plans for development in organizational terms. In this case, the owners of the company most often need a person with successful experience in structured companies, who has extensive experience in optimizing all business processes. During this period, the director must be able to quickly and competently delegate authority and have a methodical approach to any problems. Already at this stage, thoroughness and consistency in the execution of work are more appreciated. Each problem needs to be worked out deeply in order to find the most efficient and cost effective solution. At this stage, the director must adhere to the normative guidelines and be tuned in to systematically advance the goal.
The commercial director is one of the key and significant figures in the management system of each enterprise. At the same time, there is no single understanding of what he should be doing.
It should be said that in some organizations, the responsibilities of a commercial director involve managing marketing, sales, purchasing, advertising, so the position may sometimes sound different, for example, a director of sales and marketing. In other companies, the marketing division is not subordinate to it. If we talk about small organizations, then, as a rule, they do not have such a position. They simply recruit individual managers for different departments, while the commercial director can be taken over by the head.
It is worth noting that the commercial director reports directly to the head of the company. This position plays a decisive role in the preparation and implementation of strategies aimed at the development of the enterprise.
In most cases, sales tasks are handled by the commercial director. His responsibilities include the development of a sales plan, its implementation, as well as overseeing the sales system, logistics and marketing. In addition, he must constantly maintain contact with shareholders.
In the event that the activity of a particular company is in production, then, first of all, the commercial director is responsible for the procurement of materials, supplies, logistics, transport, as well as for relations with suppliers. If we talk about large structured organizations, then these 3 areas are controlled by line individual directors, headed by a commercial director.
Responsibilities
As noted above, the position of a commercial director is very multifaceted, so his responsibilities may include the following areas:
Together with shareholders and the general director - development of a work plan (current and future) of the organization, ensuring the effective use of all resources.
Development of strategies, search for new opportunities for the successful development of the company in the market.
Determining the company's trading policy based on market analysis and past sales performance, determining the geographical areas of the company, implementing the latest sales strategies.
The Commercial Director, whose responsibilities are quite versatile, is also responsible for building and effectively training the sales team.
Management of the sales department, selection of distribution channels, management of the dealer network.
Together with the marketing department, the commercial director is also obliged to develop assortment and various programs that can increase the company's sales. Successful implementation of these policies and programs is also the responsibility of the commercial director.
Organization of logistics - packaging, warehouses, delivery and so on. Planning and forecasting future needs, as well as creating a structure for efficient delivery of goods, searching for suppliers of warehouse and transport services.
The commercial director is responsible for uninterrupted cooperation with suppliers, for commercial purchases, selection of services and suppliers, as well as for all coordination of supply issues. His responsibilities also include participation in the development of the organization's budget for the financial year.
Personal qualities
A candidate for such a high position as a commercial director, whose duties involve constant contact with people, must have certain, namely:
Ability to interact with people, sociability.
The qualities of an organizer and a leader.
Strategic thinking.
High efficiency.
Ability to work with numbers and other data,
Mobility, ability to make decisions quickly.
Responsibility, initiative, focus on results.
High resistance to stressful situations.
Striving for self-development and growth.
It is worth mentioning that in various companies, the responsibilities of this manager involve leadership over such components of activities as sales, marketing, advertising, purchasing. Therefore, it is worth saying that the title of the position may sound different, for example, a sales director or a marketing director.
Job responsibilities of the commercial director
The position of a commercial director has practically no boundaries, so the range of his tasks and functions can be quite wide. He can act in the following directions:- Development of plans for the activities of an enterprise or organization together with the management, that is, the general director and the society of shareholders.
- Search for new ways and opportunities necessary for the company to successfully develop and occupy its niche in the market.
- Solving tasks in the field of personnel development, for example, salespeople and managers.
- Market analysis.
- Sales department management, selection and selection of distribution channels.
- Development of a price policy and range of products or services provided by the company, programs that increase sales.
- In addition to developing and implementing these programs, such a leader must ensure that they function in a positive way and are implemented.
- Control over logistics.
- Drawing up plans and forecasts about the future needs and costs of the company.
Job description
In each company and organization, the job description of the person holding this position is drawn up taking into account all the features of the activities that the company is engaged in. Therefore, the job description of, for example, a commercial director of a refinery and job description of a person working in a similar position in a company that sells household appliances will be quite different.But, nevertheless, they will also have a general list of tasks and directions in which this leader should be able to understand and work.
It is important to understand that a person holding the position of a commercial director must necessarily have the appropriate level of knowledge and skills, as well as experience in leadership positions.
What is the role of a commercial director?
Since this leader has a wide range of responsibilities and tasks, it can be assumed that he plays one of the leading and significant roles in the company.Not a single important meeting of the company's shareholders can do without his participation, plans and prospects for the development of the organization are not discussed, a budget for the financial year is not formed, only with his approval contracts are concluded with suppliers and companies providing services.
Due to the fact that a commercial director is a person with certain powers, it is important to pay attention to his personal characteristics when hiring him so that you do not have to fight against his use of his official position for personal purposes.
Commercial director's rights and responsibilities
This employee has the following rights:- Represent the interests of the company on issues of its activities to government agencies, other organizations, enterprises and institutions.
- Make information requests from divisions and branches of the company, which are necessary for the implementation of its activities.
- Submit proposals for the development and improvement of the company for the consideration of shareholders and the CEO.
- Develop responsibilities for your subordinates.
- Participate in the preparation, development of documentation related to its activities.
- Put a signature and a visa on the documentation that is directly related to his activities.
- Require the management of a company or enterprise to comply with all organizational and technical conditions for employment.
- To interact on issues related to his activities with the heads of other structural divisions.
Any organization, if it deems it necessary, has the right to add its own to the above list of these rights.
In most companies a responsibility this employee boils down to the following points:
- For offenses that are committed in the course of activities in accordance with the Criminal Code of the Russian Federation, the Civil Code of the Russian Federation.
- For improper performance or non-performance of official duties prescribed in the job description in accordance with the labor legislation of the Russian Federation.
- For causing material damage to the company in accordance with the Criminal Code of the Russian Federation, the Civil Code of the Russian Federation.
Duties of the commercial director of LLC
The duties of a commercial director of an LLC, that is, a private company, are largely determined by the specifics of its activities. In most firms, no matter what form (LLC, OJSC or JSC), the commercial director performs the following tasks:- deals with the definition of the strategy and policy of the company;
- makes up the characteristics of the products sold;
- carries out intracorporate and intercorporate communication on issues that directly relate to the sale of manufactured products;
- optimizes sales mechanisms and methods.
Duties of the commercial director of a trading and construction company
For greater clarity, the duties of a commercial director can be considered on the example of a trading and construction company. Responsibilities of the person holding this position in a major construction company, are, as a rule, as follows:- he searches for new customers in need of construction services;
- is engaged in the development of such areas of the company as construction, design;
- negotiates with suppliers and customers;
- analyzes competing organizations;
- prepares documentation, commercial proposals for the provision of construction services;
- prepares documents for participation in tenders;
- controls the quality and terms of construction services rendered by the company.
The main tasks of the commercial director in trading company somewhat different, since all his activities are aimed at selling and promoting the goods being sold on the market in order to increase sales and profits. This manager is engaged in the fact that forms plans for purchases and sales, carries out the selection and training of sales managers, develops the marketing policy of the organization, draws up systems for motivating and adapting personnel.
In whatever area a given leader works, it is very important that his personal characteristics correspond to the level of the position held. Successful in this position will be those people who are sociable, stress-resistant, mobile, able to think strategically, have the makings of a leader, are responsible and can analyze.
The Commercial Director is responsible for: - proper organization of work on the sale of products in accordance with the approved programs (plans) of the Company; - performing and labor discipline of employees of commercial services; - safety of information (documents) containing information constituting a commercial secret of the Company, other confidential information, including personal data of employees of the Company; - ensuring safe working conditions, maintaining order, fulfilling fire safety rules in the premises of the sales service. 1.6. Persons with a higher professional (economic or engineering and economic) education and at least 5 years of experience in economic work in managerial positions can be appointed to the position of a commercial director. 1.7.
Commercial director's rights and obligations
Ensure the preparation of reports on the results of commercial activities, statistical reporting, as well as their submission in the prescribed manner to the relevant authorities. 2.15. Ensure reliable protection of information (documents) containing information constituting a commercial secret of the Company, other confidential information, including personal data of employees of the Company. 2.16. Supervise the training of subordinates, create conditions for them to improve their qualifications, professional growth, business career development and official promotion in accordance with personal merit and qualifications.
2.17. Monitor the compliance of subordinates with the rules of labor protection and safety, industrial sanitation and fire protection. 2.18. Use in relation to subordinates the rights granted to encourage them (prosecution). 2.19.
Commercial director: responsibilities, requirements and personal qualities
The main business of this employee in this case is to promote the brand and products of the enterprise on the market in order to make a profit. To achieve these goals, work is organized in several directions:
- definition and construction of marketing policy;
- control over accounts receivable;
- formation of plans for purchases and sales, supervision over their implementation;
- selection and training of a trading team;
- creation of a motivation system and certification of managers;
- inspection of the sales process;
- monitoring customer requests.
The duties of the commercial director of a trading company additionally include planning and managing the assortment policy, knowledge of logistics and the basics of commodity circulation, interaction with key, important for the enterprise, customers, participation in negotiations responsible for the organization.
Commercial Director
The responsibilities of a person holding this position in a large construction company are generally as follows:
- he searches for new customers in need of construction services;
- is engaged in the development of such areas of the company as construction, design;
- negotiates with suppliers and customers;
- analyzes competing organizations;
- prepares documentation, commercial proposals for the provision of construction services;
- prepares documents for participation in tenders;
- controls the quality and terms of construction services rendered by the company.
The main tasks of a commercial director in a trading company are somewhat different, since all his activities are aimed at selling and promoting the goods being sold on the market in order to increase sales and profits.
Responsibilities of the commercial director, his role in the organization and main tasks
The commercial director is one of the key and significant figures in the management system of each enterprise. At the same time, there is no single understanding of what he should be doing. It should be said that in some organizations, the responsibilities of a commercial director involve managing marketing, sales, purchasing, advertising, so the position may sometimes sound different, for example, a director of sales and marketing.
In other companies, the marketing division is not subordinate to it. If we talk about small organizations, then, as a rule, they do not have such a position. They simply recruit individual managers for different departments, while the commercial director can be taken over by the manager.
It is worth noting that the commercial director reports directly to the head of the company.
Job responsibilities of the commercial director
The main thing is not a diploma, but the possession of the necessary qualities, skills and competencies. In addition to professional knowledge of computer programs, the applicant for the position must have experience in promoting various goods, know the psychology of buyers, understand the structure and specifics of the sales mechanism. Sometimes a specialist who came from the ranks of ordinary managers can bring more value to the company than an employee hired from outside.
The main thing is that the candidate possesses management skills and shows results in increasing profits. After all, a commercial director is not a performer, but an organizer and leader.
- 01.04.2016
Read also
- Commercial director: responsibilities and functions.
Responsibilities As noted above, the position of a commercial director is very multifaceted, so his responsibilities may include the following areas:
- Together with shareholders and the general director - development of a work plan (current and future) of the organization, ensuring the effective use of all resources.
- Development of strategies, search for new opportunities for the successful development of the company in the market.
- Determining the company's trading policy based on market analysis and past sales performance, determining the geographical areas of the company, implementing the latest sales strategies.
- The Commercial Director, whose responsibilities are quite versatile, is also responsible for building and effectively training the sales team.
- Management of the sales department, selection of distribution channels, management of the dealer network.
What are the duties of a commercial director of the LLC?
What is the role of a commercial director? Since this leader has a wide range of responsibilities and tasks, it can be assumed that he plays one of the leading and significant roles in the company. Not a single important meeting of the company's shareholders can do without his participation, plans and prospects for the development of the organization are not discussed, a budget for the financial year is not formed, only with his approval contracts are concluded with suppliers and companies providing services. Due to the fact that a commercial director is a person with certain powers, it is important to pay attention to his personal characteristics when hiring him so that you do not have to fight against his use of his official position for personal purposes.
Personal qualities A candidate for such a high position as a commercial director, whose duties involve constant contact with people, must have certain personal qualities. Namely:
- Ability to interact with people, sociability.
- The qualities of an organizer and a leader.
- Strategic thinking.
- High efficiency.
- Ability to work with numbers and other data, analytical skills.
- Mobility, ability to make decisions quickly.
- Responsibility, initiative, focus on results.
- High resistance to stressful situations.
- Striving for self-development and growth.
Who reports to the commercial director of the enterprise
To create optimal conditions for the timely and high-quality performance by the sales service of the day-to-day tasks assigned to it in strict accordance with the approved work procedure (regulations), marketing technologies, and product sales plans. 2.3. Lead the work on the formation of a sales policy and marketing strategy, the definition of its main directions in accordance with the development strategy of the Company and measures for its implementation. 2.4. Participate in the development of business plans for the organization of the Company in terms of meeting its current and future needs in the sale of products of a certain quality, quantity, assortment and range. 2.5. To ensure the necessary level of development of the sales infrastructure and its constant growth, the proper effectiveness of marketing decisions, and a steady increase in the efficiency of the sales service. 2.6.
Attention
A commercial director is a person who, by his actions, mobilizes, controls and directs company personnel to maximize profits. Depending on the direction of the production or trade organization, the requirements for the qualities and abilities of the candidate for this position and the functional responsibilities of the commercial director of the enterprise may differ slightly. The role and main tasks of the commercial director Despite the importance of this figure in the management system of the enterprise, his responsibilities and functions are not always clear.
Most often, people from the purchasing department apply for this position. Who, if not a sales manager, knows the specifics of communicating with clients, has experience concluding contracts, understands the specifics of his organization.