Differences In The Nature Of Sales Tasks Commerce Essay

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Agree, because, sales tasks and skills depend on sales plan of the company. According to the sales plan, sales force has been involved with different sales takes. Different skills support to do those sales tasks effectively. For an example, a sample sales plan g

2.2 "Sales staff members who are operating in an international environment should play a different role compared with sales staff members from a local environment"

Agree. Because, today the world has globalized and there is a huge competition among businesses. As a result of globalization, transportation and communication have improved, as well as in technology also has a significant development. So, businesses have become more practical. Consumers now access to the best products and services from various countries. With rapid changing lifestyle, the competition among countries has increased to provide goods and services with newest in technology.

There are different nations, religious viewers and culture holders in the international market. Sales staff members who are operating in an international environment should have at least a minimal knowledge of above factors. When companies deal with the international market, sales staff has to plan and implement various strategies according to cultures, norms, religious views, believes of different countries, some special trade legislations (e.g.: World Trade Organization, enter into the European market - legislations of European Union (EU), enter into the UK market - regulatory bodies of Competition Commission) and also those strategies should suit for the accomplishment of company goals. As well as they have to plan a strong marketing mix suitable to the international market for competing with competitors and succeeding the international market. Sometimes, strategies and marketing mix should be differed from country to country. For that, they have to gather more details and information more than local information. Before set strategies and marketing mix, following process should be considered.

Identify the target market - with whom the sales team can be able to reach the sales target as company expected.

Identify key drivers - the ways help sales team to accomplish sales targets/goals.

e.g.: if the company set a goal to increase profit by 5% within this year, how will products help them achieve that goal.

Identify the language to address or people use - use the appropriate and attractive language for addressing the audience.

e.g.: to address technical audience, use the technical language and ideas, for finance people and use numeric data to imprint the message.

Determine selling products exactly - identify what is going to sell.

e.g.: is it a new product idea.

Connect the target audience with benefits of the product - there are clear differences between features and benefits. Salespeople should understand and know the key differences.

Features are what your product or idea does.

e.g.: new software - fast and easy

Benefits are what those features mean to the target audience.

e.g.: new software - people will have more time to do other tasks.

Highlight the Unique Selling Proposition (USP) - customers buy the best possible solutions fulfill their needs and suit for their budget. Highlight what makes particular product uniquely relevant to the customers.

Sometimes they have to put more effort to find out appropriate and accurate information and may have to face more difficulties and failures when implementing strategies. As well as before implement new strategy they should do long term research than local environment.

International selling is based on direct exports and indirect exports.

Direct export - sales to the final user rather than using an intermediary, maintain overseas agencies and distributors.

Indirect export - company's products are sold abroad by other organizations.

Export houses - export houses are firms which facilitate exporting on behalf of the company

Specialist export managers - export management offer a full export management service

Buying offices of foreign stores and government (e.g.: many foreign companies have buying offices in UK)

Complimentary export

International marketing mix

The factors should be considered in the international marketing mix and some strategies used by some companies are indicated below as examples.

International product strategies

Company should take into consideration cultural background, buying habits, levels of personal disposable income in order to deliver a tailored marketing mix program to suit their needs.

e.g.: 1. McDonald is a global player. Their burgers are adapted to local needs of different countries. In India, cow is a sacred animal. So, in India McDonald serves their burgers with chicken or fish.

2. Mexicans are more interesting for spicy foods. So, in Mexico burgers serves with chili sauce.

3. Coca Cola is taste sweeter in some parts of the world than in others.

International promotion strategy

Advertising messages in countries may well have to be adapted according to the norms of particular country. Because there are some language barriers, cultural and religion believes. As well as before implement the promotion strategy company should aware about the level of television penetration, the control of the government over advertising on TV and radio, the popular advertising media of various countries.

e.g.: 1. Consider about using colors in India.

2. In Japan, they believe white is the color for mourning.

International pricing strategy

International pricing is considering about fixed and variable costs, competition, company objectives, proposed positioning strategies, target group, willingness to pay, the costs of transport, any tariffs or import duties that may be levied on products, currency which expect to be paid in.

Furthermore, exchange rate fluctuation will also impact profitability and influence pricing decisions.

There are some other factors to consider when pricing for international market such as local incomes of the country, income levels, general economic situation of the country and how does it influence pricing.

International distribution strategy

Company should concern international distributional channels.

e.g.: A standard distribution channel in the UK may go from a manufacturer, wholesaler, and retailer to consumer or direct from a manufacturer to a retailer.

International market attractiveness

Market size

Market growth

Market profitability

Pricing trends

Competitive intensity/rivalry

Overall risk of returns in the industry

Opportunity to differentiate products and services

Segmentation

Distribution structure(retail, direct, wholesale)

Further, the sales staff which deals with international market should aware about new international trade trends and always should seek new opportunities.

e.g.: 1.There is a huge demand for organic products especially in European countries and Australia. So, coir based products manufacturers can easily enter into the European market with coir based growing products.

2. European and most of other countries seek organic fruits, fresh flowers, local spice products and ayurvedic and herbal products.

3. Hand loom fabrics.

When considering above factors, it is cleared that sales staff members who are operating in an international environment should play a different role compared with sales staff members from a local environment.

2.3 "There is a possibility to explain the purpose/s of participating for the trade fairs"

Agree. Actually there is a possibility to explain the purposes of participating for the trade fair. Because, the main purpose of participating the trade fair is deal with customers, as well as sales people can take an opportunity to develop and build up public relations. More, sometimes companies take trade fairs as an opportunity to promote their existing and new products or services. The purpose/s of participating for the trade fairs comply with the strategic plan of the company/sales division. Trade fairs and exhibitions offer several opportunities for following factors as well as those benefits are become main purposes of participating for the trade fairs.

Public relations

Promotion and selling

Networking within the industry and clients

Testing the response to new products

Researching the competitor products and suppliers products

For reach above purposes, sale staff should have a good plan and preparation not only for before the trade fair but also at the trade fair and after that.

Before the trade fair they should plan

Stand design, display and service

Stand staffing

Accommodation and transport for personnel

Pre-arranged meeting and visits

At the trade fair they should

Make appointments

Provide information

Distribute leaflets

Record all visits

After the exhibition

Follow up the customers - send thanking letters for the audience and if a customer has purchased a product or service check whether that order has been fulfill or not

Include all visitors' record into the customer data base in the company.

For more details, the purpose/s of participating for the trade fairs can be categorized into six major areas and exhibitions/trade fairs provide opportunities to succeed following purposes.

Primary purposes of participation

e.g.: Meet new markets (foresee the niches in the market), Observe the competitiveness, Evaluate export chances, Exchange experiences with others, Commence co-operation arrangements, Contribute in specialist events, Identify development trends, Encounter competitions, Increase the profit

Communication purposes

e.g.: Build up personal contacts and public relations, Meet new customers, Increase company status, Enhance the effectiveness of advertising among customers and the public, Corroborate press relations, Discuss requirements with customers, Develop existing business and customer contacts, Gather information about new market, Research and sales training

Price and conditions purposes

e.g.: Offer a cogent range of product or services to the market

Distribution purposes

e.g.: Expand the distribution network, Find out new agents

Product purposes

e.g.: Investigate the acceptance of the product or service range, Evaluate the success of a product or service launch, Introduce product variations and innovations, Expand the range of products or services

Purposes regarding visitors

e.g.: gain a general idea of the market and specialist areas, evaluate the situation of the market, compare the prices and qualities, identify specific products, look for new products, identify market trends, get knowledge about the technical functions and nature of products or services, find solutions for current problems, learn, build up business contacts, make orders, seek out contacts

Introduction

Nestle Lanka PLC is a most popular company which in Sri Lanka supplies consumer goods. They have been operated in Sri Lanka over 100 years. Within these 100 years the company has become one of leading consumer goods providers to the market with country's best loved brands. The company provides direct employment to almost 1,200 people and positively impacting the livelihoods of over 20,000 distributors, suppliers, farmers and their families.

Nestle operates its businesses all over the world and the company entirely based on geographical control. Within the country they have territorial agents to ease off sales management and control. The company has a well organized marketing department and sales and operations division.

In sales division, the sales force is well organized to accomplish sales objectives through strong sales strategies. To build up strategic sales force, the company should have a good sales management. Sales management is a business discipline which focuses on the practical applications of sales techniques and the management of sales operations. It is an important function to manage the sales force and various processes of sales. The objectives of the sales management divides into mainly tree categories,

Sales Volume

Contribution to profits

Continuous Growth

In order to carry out above objectives the role of sales management typically involves with

Setting sales objectives and strategies in line with corporate objectives

Recruiting suitable sales force

Motivating the sales force and talent development

Organizing sales activities and control sales output

Designing appropriate sales organization structure

Task 03

Role and objectives of Sales Management

Sales strategies and corporate objectives

Before plan sales strategy, sales objectives should be taken to consider with marketing mix and corporate objectives of the company. The process of setting sales objectives as follows.

Corporate strategy

Marketing objectives

Marketing strategy

Sales objectives

Sales strategy

Senior management

Middle management

Corporate tactics

Marketing tactics

Corporate objectives

The main types of sales objectives are,

Sales Volume

Contribution to profits

Continuous Growth

Above figure explains the process of build up sales strategy for the achievement of corporate objectives. Marketing objectives and strategy incorporate with corporate strategy for the accomplishment of corporate objectives. Then sales objectives and strategy are marketing tactics incorporate with marketing strategy in order to carry out marketing objective.

Before set sales objectives and strategy, marketing objectives should be taken for the consideration. For an example, the corporate objective is increase the profitability by some percentage over two years. To accomplish that goal, production department could cut costs and marketing department should build up marketing strategies to increase sales revenue by means of marketing mix. The hierarchy of above procedure as follows.

Corporate objectives (Increase profits)

Production objectives

(Cut costs)

HR objectives

(Reduce headcount)

Marketing objectives (Increase sales revenue/ market share/ sales volume)

Objectives for the marketing mix

Product

(Increase some percentage of revenue from new product)

Price

(In support of market share - penetration, skimming)

Promotion

(Increase awareness, recall sales leads)

Place

(Speed of delivery, coverage)

Marketing objectives are often expressed in sales terms. For an example, the Nestle Company hopes to increase the market share to 40% by a particular year. According to this marketing objective, sales manager can develop the sales objective as, forecasting the market share of 40% in particular year will equal to 2 million pieces of a product and set an objective to sales team to sell 2000 more pieces of particular product per month by particular year. The individual sales objectives can also be set according to this, with the sales force of 100, each sales person needs to sell 20 extra pieces of particular product per month by particular year. Sales strategies can be implemented by mean of the marketing mix in order to carry out corporate objectives.

Product life cycle and different sales strategies

Research and development

Launch

Introduction

Growth

Maturity

Decline

Extending the life cycle

Sales profit

Time

Competitors enter into the market

Selling a new product/service in the launch stage (Achieve a trial) - the launch period of a new product or service is the most significant time period of its life cycle. Most of products are launched fail to become successful mature period because of the despite testing and screening at the new product development stage. The salespeople need to recognize that from the customer's point of view, a new product is a risky option. There are some sales strategies that can be used to counter the risk factor.

Issue free trails or tests.

Provide guarantees and warranties to insure the continuing performance.

The backing of the company endorses the product or service with company image and reputation for innovation, quality, reliability and performance.

Provide advice and recommendation of salespeople. It is very valuable to establish relationship of trust between the customer and sales representative. It will be a valuable asset to the company when launching a new product.

Commitment to a major advertising and promotional launch for a new product for the resell market. It will help prove to retailers the product will be profitable.

Provide special offers on after sales service. Such as technical support and training.

Use a lower introduction price as a strategy to ensure rapid penetration of the market.

Selling products/services in the growth stage (forestall competitors) - the easiest stage in which to be working in the product life cycle. A less risk involved in the purchase. And also more awareness and interest in the product/service, because the new product/service is already established and proven. However, the growth stage is a short time period and at some point, it will level off as the market reaches saturation. The main sales objectives of this stage are,

Implement many marketing activities to ensure company loyalty, because new competitors enter into the market in this stage.

Sales team is able to reach the customers before competitors do.

To fulfill above objectives

Visit potential customers and

Plan sales journeys can be used as strategies.

Selling a mature product (account maintenance) - in this stage most sales will be repeat purchases and few new customers. And also unlikely to be any overall increase in the market sizes. This is usually the longest time period of the product life cycle. The role of salespeople becomes one of account maintenance. The objectives of this stage are,

Provide good quality customer care.

Easy re-ordering and maintain regular sales contacts.

To accomplish above objectives, sales division can implement a strategy to use separate sales teams with different set of skills than the creative development of new sales to handle new accounts and maintain existing accounts.

Selling to new markets - at the mature stage of the product life cycle can develop modification strategies towards accomplish the objectives of extend the life cycle of the product, win new sales, protect existing market share.

Product - modification to features and performance for attracting new customers and retaining existing customers, gaining competitive advantage)

Market - present the product to a new group of customers. The sales team needs knowledge about the market, needs and key decision makers. Publicity and press coverage, advertisements and promotional activities could be used for generating awareness.

Modify the marketing mix.

Selling in the decline stage - in this stage customers are switching to new products. A product is withdrawn is to maintain the business and loyalty of the customer, handling worries about services and spares for existing purchases and helping customers to find alternative products are the tasks of salespeople at this stage.

Recruitment

Recruitment is the process of selecting a supply of possible candidates for the vacant positions of the organization.

The characteristics of a salesperson

Enthusiasm

Intelligence

Reliability

Commitment

Initiative and creativity

Self-confidence

Courtesy

Sensitivity

Methods and media of recruitment

Recommended different methods and media for recruiting employees that can be used for both organizations as follows,

When they are selecting advertisement as a method, there are some factors have to consider when select the advertising medium. Those are

The type of the organization

The type of the job

The cost of advertising

Readership and circulation

Frequency

Recruitment process

The importance of recruitment and selection procedure are.

Fill an identified skills gap

To replace staff who have been promoted or who have left

Work of the team has expanded

The overall aims of recruitment and selection process;

definition of requirements

recruitment

selection

There are three main recruitment tasks followed in sales management when recruiting the sales staff. Those are,

Job analysis

Job description

Job qualification/ person specification

job analysis.jpg

Job analysis is the process of analyzing, setting out information about the content of a job in terms duties, responsibilities, tasks, necessary skills, knowledge, qualifications, abilities, outcomes and work environment of a job. The person who responsible for preparing a job analysis should obtain better comprehension of day to day activities of the salespeople before complete a job analysis.

Information from job analysis

Information that can be obtained from job analysis (basic facts)

Information that cannot be obtained from job analysis (subjective issues)

Job title

Purpose of the job

Content of the job - related activities

Accountabilities - results responsible for

Performance criteria - measures the employee

Responsibility - importance of the job, decisions she/he needs to take

Skills, qualifications needed for the job

Organizational factors - who does he/she report to and vice versa

Developmental factors - promotional aspects, career aspects or dead ends

Environmental factors - working conditions, security and safety issues, equipment

The amount of the supervision a person receives

How much freedom a person has to make decisions

Decision making authority

How hard the job is

How the job fits in elsewhere with the company

How work is allocated

Most suitable activities for collect data for the job analysis for a post of sales division,

Interviews

Questionnaire (Appendix 1 - a sample format of a questionnaire for job analysis)

Activity

Advantages

Disadvantages

Interviews with managers, job holders and subordinates - ask about more general aspects ( job purpose, the main activities, the responsibilities involved and the relationship with others)

Flexibility

Interactive

Easy to organize and carry out

New or follow on questions can be asked in the light of information received

Reveals other organizational problems

Time consuming

Hard to analyze

Interviewee might feel on defensive and might not be entirely frank

Not giving specific answers

Questionnaires

Time saving

Can get specific answers

Easy to analyze

Easy to organize and carry out

Cannot ask more questions and get more ideas

Have to fulfill with specific answers

Cannot reveal other organizational problems

Inflexibility

This job analysis helps in order to write the job description of a particular job. (Appendix 2 - a sample job description - sales executive)

The difficult part of the recruitment process is determination of person specification. The person specification describes requirements such as educational qualifications, training and work experience, personal attributes of a job holder to be able to perform the tasks perfectly. (Appendix 3 - a sample person specification - sales executive)

Selection

Selection is the process of choosing the best candidate for a specified position from a number of candidates. Sales division is the most important of the marketing. So, companies should always try to select right person to the right position at the right time.

Selection methods

Application forms analysis - application forms can be used to eliminate totally unsuitable candidates and it acts as a useful preliminary to selection interviews. Assess applications against key criteria in the job and sort them into possible, unsuitable and marginal. After short listing the selected applicants invited to interviews.

Interviews

Presentations - reveal presentation skills, communication skills.

Selection tests - a selection test is sensitive enough to differentiate, standardized on a representative sample of the population and reliable.

Assessment centers - measure presentation skills and decision making skills through case studies.

Group selection methods - can check social skills, intellectual skills and attitude, give a longer opportunity to study candidates, reveals management skills, sales skills and personality and can give accurate judgment by comparing candidates.

References - written references as a proofment or telephone references.

For salespeople, interviews and presentations are the most appropriate selection methods. The main purposes of interviews as a selection technique,

Finding the right person for the job

Making sure the applicants understand the job

Giving the best possible impression of the organization

Make all applicants feel that they have been given a fair treatment in the interview

The company can conduct many types of interviews such as individual and panel and there is a good preparation for the interview.

The procedure of conducting an interview

Selection procedures

Sales management can follow different selection procedures for the managerial and non managerial positions to measure job holder's knowledge, skills and qualifications to perform their tasks well and achieve sales objectives. Selection procedure for non managerial positions in sales management as follows.

Following figure is about a possible selection procedure that can be practiced in selection process for managerial positions in sales division.

Motivation

Motivation is the desire and willingness of a person to expend effort to reach a particular outcome.

In sales management motivation refers to the amount of effort sales people are willing to expend to accomplish the tasks related with their job.

Sales performance = Ability x Motivation

(http://www.apaconsultancy.f2s.com/enhancing.html)

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According to above equation, there is a consecutive relationship between sales performance and when ability multiplied by motivation. Sales managers should consider increasing the motivation and abilities of sales people to enhance their sales performance. They can follow motivational theories and organize some training programs when enhancing the sales performance. Motivation can divide into two different types as follows,

Maslow's Hierarchy of Needs theory

Sales division can follow Maslow's Hierarchy of Needs theory to motivate sales people.

It is easy to motivate sales force by using this theory. Because, always people are trying to satisfy needs and wants. According to this theory after satisfying one need of level, employees will attend to satisfy another level. It is easy to motivate employees level by level.

Motivation of employees

Basic level

Recruit some employees as trainees with low salary scale.

Safety level

Then employees see job security as a permanent employee.

Social level

Arranges annual treats and get together parties to increase inter relationships and friendships.

Esteem level

Employees try to maintain social recognitions. Motivates employees by leaving positions and power.

Self esteem level

Employees seek to satisfy some self fulfillments. Promote employees as branch managers/ regional managers or executives

Vroom's Expectancy theory

As well as they can motivate employees according to Vroom's Expectancy theory.

Employees put effort and it will result in acceptable performance. Employees believe that performance will make the reward. Then the company will reward employees. When rewarding employees for their performances, they are concerning to put more effort to fulfill their tasks as company expects.

According to Vroom's Expectancy theory

Motivation = Valance x Expectation

Herzberg's motivational theory

Furthermore, Herzberg's motivational theory also can use to motivate the sales force.

Hygiene factors Motivational factors

According to the above figure, when hygiene factors are at a high level, employees are dissatisfied and demotived. In second situation hygiene factors and motivational factors both are at the lowest level, so employees are not dissatisfied as well as not motivated. But in third situation motivational factors are at a high level and employees are also satisfied and motivated.

Job design theory

Job design theory is also a motivation theory. Job design is the incorporation of the tasks the organization needs to be done into a job for one person. Job dimensions that are thought to contribute to job satisfaction.

There are three ways of improving job design to make jobs more interesting to the employee suggests by Federick Herzberg.

Job enrichment Vertical extension

Job enlargement Horizontal extension

Job rotation Sequential extension

Furthermore, Maccoby has identified five types of different social characters when explores the dominant values that determine motivation.

Expert

Helper

Defender

Innovator

Self developer

Remuneration

Company can use the pay as a motivator. Compensation is any reward or payment given to a person for service performed. The purposes of compensations are,

Attract qualified workers towards the organization

Retain qualified and experienced employees within organization

Motivate employees to perform their duties in perfectly

There are two types of compensations,

Direct compensation - cash received in form of basic salary, overtime pay, bonus and sales commissions.

Indirect compensation - refers to the general category of employee benefit program.(maintain or improve the lifestyle of employee)

Remuneration helps to improve morale, motivation and team spirit of the employees, facilitate recruitment and increase retention. There are mainly two types of remuneration.

Piece rate method - based on unit of productivity

Time rate method - based on the time employees spend on the job

Compensated remuneration has praise and recognition for the particular job. Good remuneration can be more effective in motivate sales people to be more productive. As well as remuneration can be used to enhance the employee morale. Paying someone an incremental bonus for most productivity causes to improve overall morale of others and employees can achieve goals. Furthermore remuneration encourages teams to increase the productivity level. Sales managers can provide bonuses, incentive pay or extra commissions as remuneration for some sales activities such as increase the number of new customers, increasing existing customer orders. It will help to enhance team motivation and sales performance.

Training and development

Performance issues affect to the sales performance and it causes to productivity as well as the profit. Variable factors are affecting for person's performance at work. Following table is about factors affecting a person's performance.

Individual variables

Organizational and social variables

Physical and job variables

Situational variables

Age and sex

Social environment

Methods of work

Physical environments

Physical characteristics and personality characteristics

Types of incentives

Design and condition of work equipment

Character of the organization

Education

Types of training and supervision

Work space and arrangements

Experience

Intelligence and aptitude

Motivation and interest

Personal circumstances

Training really covers

Performance issues

Performance issues

Causes based on employees

Causes based on the company

Wrong communication

Failure to meet deadlines

Negligence of duties and responsibilities

Weak customer handling

Conflicts in team working

Discipline issues

Lack of communication skills

Lack of ability to plan work appropriately

Lack of knowledge required

Less self motivated

Less interest about the job and less effort on work

Lack of attention and judgment

Less innovation

Less self confidence

Negative attitudes

Education and experience

Physical characteristics and personal circumstances

Age, sex and personality

Failure to provide needful information

Failure to communicate performance expectations

Irregular performance feedback

Failure to provide reasonable resources (office equipment)

Unsuitable office arrangements and working environment

Expectations of unrealistic performance

Deficiency of necessary training opportunities and instruction

Methods of work

Character of the company

Types of incentives

Training and development is the process by which the knowledge, skills and attitudes of individuals are enhanced to carry out their job effectively and the benefits of the organization. Training is a planned and systematic modification of behavior. It can be done through learning events, programs and induction. Development is the growth or realization of a person's ability and potential. It can implement through the provision of learning and educational experiences.

Training process

Investigate the business plan, performance reviews, job analysis and existing training. Identify reasons for training and development - less sales achievements, number of customer complains, mistakes done by sales people.

Identify the knowledge, skills and competences needed.

Define the training objectives - make an initial investigation into the identified gap and then se SMART objectives which address,

Behavior - what the trainee should be able to do

Standard - to what level of performance

Environment - under the conditions

Develop the training program

L - Location (off the job/on the job)

T - Time (one day/two day)

T - Trainer (for below level people - sales manager, for management staff - qualified trainer from outside)

T - Train techniques

D - Devices (multimedia, case studies, printed materials)

Implement the training program

Off job training - training courses conducted by an external supplier. The types of the courses are day release, revision courses, distance learning, evening classes. Lecturers, seminars, role play, simulation and computer based training can be used as techniques.

On job training - the company must take the responsibility any mistake on the job training. The work should not be complex and should have a specific purpose. Instructions, coaching, temporary promotion, 'assistant to' positions, project work, action learning, job rotation, project work committees can be used as methods of on job training.

Induction training - immediate supervisor commence the ongoing process of induction. Pinpoint the areas that the recruit will have to learn in order to start the job. Explain about the nature of the job, goals, and tasks, working hours, leaves, operational systems, structure of the department, whom to report and whom to complain. As well as introduce the recruit to the people in the office, plan and implement suitable training activities. Finally coach, train and review performance.

Measure the progress of the training program (interviews, discussions and achievements of the sales records)

Achieved objectives

Evaluate training

Validation of training - observing the results of the course and measuring whether the training objectives have been achieved.

Evaluation of training - comparing the actual costs of the scheme against the assessed benefits which are being obtained.

Benefits of a training and development program

Benefits for the organization

Benefits for the individuals

Improving performance and thus lower costs and increase the productivity

Less need for detailed supervision

Fewer accidents and better health and safety

Flexibility

Motivation

To build the corporate culture

Helps to manage change

Helps for recruitments and succession

Enhance knowledge and skills

Help people to do their job better, increasing job satisfaction

Social benefits - develop networks of contacts

Psychological benefits - feeling of contribution

Organizing the sales activities

Territorial design

Nestle Lanka PLC is large sales organizations and involving a territorial breakdown. And also it is based on geographical divisions.

Pyramid organization structure - the top management at head office and sales supervisors control the sales force in a region. As well as sales force for each territory in a region.

Span of control - the amount of work to be done and the physical condition under which it is done are the factors influencing on span of control.

Amount of supervision required - depends on the size of sales commission.

Size of the sales territory.

Purposes of the territorial design

Reduce travelling cost and time

Motivate salespeople

Give salespeople an equal work load

Keep the organization and administration simple

Sales people can get to know about their sales area and customers

Selling and information technology

Information technology changes the way sales are organized and operationalised. As well as it makes sales activities more efficient and effective.

Telecommunication - use of telecommunications, e-mail and video conferencing spend less time and cut off inefficiently travelling.

Data handling - customer records can be easily kept up to date with personal details. The effectiveness of various promotional methods can also be followed. As well as the effectiveness of sales personnel can be asses easily.

Customer presentations - tailor presentations to customers and visually display benefits of the product or service.

Management of the sales force - to assess individual effectiveness, individual performance of salespeople can be analyzed along. Spreadsheets use to plan sales force activities. As well as video conferencing can be used for meetings and it saves time.

Techniques for co-ordinate and control sales out put

Appraisal and performance

Appraisal is a systematic approach to providing the feedback, praise and criticism in context. Appraisal provides an assessment of current performance against which future improvements can be measured and training needs established.

Purposes of performance appraisal,

Review performance - to plan training and development programs and set targets.

Review potential - to plan career development

Increase motivation by providing feedback

Review salaries - measure the extent of salary increase and to whom

Features of a typical assessment system

Identify the criteria for assessment - based on job analysis, person specification and performance standards.

Prepare the assessment report - number of sales, punctuality, customer relationship.

Appraisal interview - exchange views about results of the assessment and targets.

Review of the assessment by the assessor's own superior - to establish the fairness of the procedure.

Preparation and implementation of action plan to achieve improvements.

Follow-up - evaluate the progress of the action plan.

Techniques of appraisal

Overall assessment - the simplest method. The manager writes narrative judgments about the appraisee by checking personality characteristics and performance targets.

Guided assessment - assessors comments on a number of specified characteristics and performance criteria.

Grading - assessor selects one of a number of levels or degrees for given characteristics. It is also known as rating scales.

Numeric values may be added to ratings, alternatively graphic scale may be used to represent general position.

Result oriented schemes - this approach review employee performance against specific targets and standards of performance according to the agreed goals. e.g.: management by objectives (MBO)

Self appraisals - employees carry out their own self-evaluations as part of appraisal. This is an opportunity for employees to reflect on performance as well as beneficial for them to indicate training needs. (Appendix 4 - Performance evaluation form)

Peer rating - an alternative approach to individual appraisal. An employee is judge by colleagues. This will be lead to mistrust and fear of missing promotion.

360 degree appraisal - in this method effectiveness is appraised by all the positions with whom the subject has dealing (supervisors, subordinates, customers, suppliers). It high lights every aspect of employee performance and also gives an opportunity to compare the self evaluation with other's views. As well as it will fairer and more relevant.

Appraisal interview -

The tell and sell method - manager provides details about the assessment and tries to gain acceptance.

The tell and listen method - manager provides the assessment and invites response

The problem solving approach - manager becomes a counselor and helper. The employee is encouraged to think solutions.

Budgets and Profitability

A budget is a quantitative statement for a defined period of time which may include planned revenue, expenses, assets, liabilities and cash flows. There are some main purposes of budget.

Ensure the achievement of the organization's goals

Compel planning (to achieve budgets)

Communicate ideas and plans

Co-ordinate activities (e.g. the production budget should be based on sales expectations)

Provide a framework for responsibility accounting

Establish a system of control

Motivate employees to improve their performance

The budgeting process

Data for the budgeting process

Internal information available - market and sales information, production and operational information, financial information, research and development information, personal information

External information available - market and competitors, new opportunities, political factors, economic condition, social factors, industrial structure, technological developments.

The master budget

Budgeted profit and loss account

Cash budget

Budgeted balance sheet

Preparing the sales budget : reasonable and realistic

Preparing other resource budgets

Organization structures and procedures

Organizational design/ structure help to identify task allocation, coordination and supervision. It is ease of when direct employees towards the achievements of company goals. If the organization based entirely on geographical division, when design the organization structure following factors should be taken in to consideration.

Hierarchy of authority

Span of control

Amount of supervision required

Size of sales territory

Specialization

There are some organization structures specialized for selling,

Specialization by function (e.g.: marketing department - sales division, research and development division, advertising and promotional division)

Specialization by the nature of goods

Specialized by the range of goods (e.g.: Sales Manager Nestomalt, Sales Manager Maggi, Sales Manager Nescafe)

Specialized by range of market

Specialized by range of customers

Specialized by range of outlets ( Manager supermarkets, Manager mini groceries)

Companies can develop marketing department organization structure according to above specialized structure to ease off sale force management and selling activities of the company. Nestle Lanka PLC uses organization structure which based on geographical, specialized by the range of goods and specialization by function.

Samples of sales organization structures of the Nestle Lanka PLC

General Sales Manager

Western Regional Sales Manger

Eastern Regional Sales Manger

District Sales Manager

District Sales Manger

Sales person

Sales Person

Geographical sales organization structure

An example of sales force organized by range of products

General Sales Manager

Divisional Sales Manger - Nestomalt

Divisional Sales Manger - Nescafe

Western Regional Sales Manager

Eastern Regional Sales Manger

District Sales Manager

District Sales Manager

Sales person

Sales Person

The function based organization structure

General Manager - Marketing Department

Manager - Sales division

Manger - Advertising and Promotion

Manager - Research and Development

Function based, based on the range of goods and geographical sale organization structures are most appropriate to the company. It is more effective in sales activities and following advantages can be strengths for the sales management.

Easy to understand responsibility and authority

Determine span of control

Explain communication channels

Upward, downward and horizontal communication are available

Increase the skills and experience for variety of tasks

Each division works collaborate and has linkages with other divisions and more information are available

Maintain and use of database

A database is simply a coherent structure for the storage and use of data. It involves the centralized storage of information which provides

Common data for all users to share

Avoidance of data duplication in files kept by different users

Consistency in the organization's use of data, and in the accuracy and up-to-date of data accessed by different users, because all records are currently maintained and updated

Flexibility in the way in which shared data can be queried, analyzed and formatted by individual users for specific purposes, without altering the store of data itself

Features of databases

Data are the raw components of information (names, dates, item descriptions, prices, colors, addresses and so on)

Fields are the labels given to types of data

Records are the collection of field relevant to one entry

Tables (database files) are the collection of records that describe similar data

Databases (catalogues) are collections of all the tables relating to a particular set of information

Basic features of database packages

Find any records, using any known data item

Sort records alphabetically

Filer records to view data based on specific criteria

Interrogate records, generating the selection of records based on a complex set of criteria (more than one)

Calculate and count data entries

Format selected data for a variety of uses, as reports, forms, mailing labels, charts and diagrams

The importance and usage of database

Easier to collect and store more data

Easier to extract data from the file and process

Businesses have access to the databases of external organizations. eg. Money market interest rates, foreign exchange rates etc

Increased sales and market share

Increased customer retention

Better use of resources

Better decision making

Conclusion and Recommendation

Nestle Lanka PLC is one of leading Food and Beverage Company which operates and develops businesses through effective sales management. Sales management is all about planning, organizing, staffing, leading and controlling the sales force to accomplish sales objectives. The role of the sales management is in order to carry out sales objectives. The role of sales management typically involves with

Setting sales objectives and strategies in line with corporate objectives

Recruiting suitable sales force

Motivating the sales force and talent development

Organizing sales activities and control sales output

Designing appropriate sales organization structure

Sales objectives and sales strategies are collaborated and developed with marketing objectives for the purpose of achieve corporate objectives of the company. There is a process of setting sales strategies and objectives in line with corporate objectives. When planning the sales strategy, marketing objectives are considered and forecasting sales volume according to objectives and after that set sales strategies to achieve forecasted sales targets. As well as company can use different sales strategies for the different stages of product life cycle

The recruitment and selection procedures are important to

Fill an identified skills gap

To replace staff who have been promoted or who have left

Work of the team has expanded

Definition of requirements, recruitment and selection are overall aims of recruitment and selection process. Company can recruit sales force internally and externally. Different media can be used to publish the vacancy for both of above recruitment methods. Mainly the process of recruitment involves job analysis, prepare job description and job specification, publish the vacancy, manage response, process application and arrange interviews and select suitable candidates. The most suitable methods for job analysis are interviews and questionnaire. I have attached a questionnaire that can be used in job analysis and a suitable job description and person specification for the post of Sales Executive in appendixes. Different selection tools can be used to select candidates in the selection process. As well as company can use different selection processes for managerial posts and non managerial posts. Interviews and presentations are most suitable selection tools to select appropriate candidates for the sale force.

There are many theories for motivate sales force. The Maslow's need theory and Herzberg's two factor theory are showed a relationship between them.

Motivation factors

Hygiene factors

I recommend the company to use Maslow's need theory, Vroom's Expectancy theory, Herzberg's two factor theory and job design theory for motivating sales force.

Pay can be use as a motivator and company can use commission incentive schemes, where a sales person's pay depends on sales targets for more effectiveness. For the training of the sales force, on job training, off job training and induction training cab be used as training methods. Furthermore, personal development plans also can be use to people's career development.

Territorial design and information technology help and ease off company to organize sales activities effectively. And also performance appraisal and budget planning according to the profitability are contributed to efficient control of sales output. I have attached a suitable job evaluation form that can be used in performance appraisal.

The appropriate sales organization structure and maintain strong database system also affect to the effectiveness and efficiency of the sales management. I have mentioned suitable sales organization structure for the Nestle Lanka PLC in the report. Company already has a good database system. They can consider following factors when develop and maintain the database.

Build up a database

Customer titles, names, addresses and contact (telephone, fax, e-mail)

Professional details (company, job title, responsibilities esp. for B2B marketing)

Personal details (sex, age, number of people at the same address, spouse's name, children, interests, and any other relevant data known)

Transaction history (what product/services ordered, how often, how much is spent)

Call/contact history (sales or after sales service calls made, complaints/queries received, meetings at shows/exhibitions)

Credit/payment history (credit rating, amounts outstanding, aged debts)

Current transaction/details (items currently on order, dates, prices, delivery arrangements)

Special account details (membership number, loyalty or incentive points earned, discounts awarded)

Maintain the database

Contacts who become customers should be transferred to the customer database and deleted from the contacts database in order to avoid duplicated mailings

Any updated information should be entered in the database

Additional information obtained from contacts should be added to relevant records

New names and records should periodically be added to the database, and names which have received no response should be deleted

'undeliverable' items should be checked for common errors and corrected if any

Requests from customers or members of the public to have their details erased from the database should be honored

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