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Sales Managemet
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To: Managing director – “Multi Electronic”
From: Manager - “Multi Electronic center A”
Date: 8th
of November 2012
Subject: Improving staff capacity
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1. Executive Summary
Electronic instrument market in Sri Lanka at that time was dominated by few products.
This category was small. But now it‟s different, because now there are in so many electronic
products. Now a day‟s electronic instruments are necessary to many people‟s with their busy
lifestyle.
Marketing environment is directly impacts on any business, because it can create influence
inside of the business and outside of the business. So this situation is also true for electronic
products. So competition is also impact in here.
Multi Electronic Company has to face arising competition in marketing environment. So
company has to use effective sales force structure. Market base sales force structure can
create best staff performance. And also sales training program have to do at least doing two
days.
Mainly company has to give direct financial incentives, indirect financial incentives and
also non financial incentives. Company follow effective motivation methods it can easy to
face arising competition with well performance sale force.
Company front line staff is executive managers in 10 Multi centers. The company doing
effective motivation and training management to them it create strong power inside if the
company. And also company has to give large consideration to the company atmosphere and
layout. If the company well follows above methods with selling only high quality products it
can be the best electronic retail outlet in Sri Lanka.
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2. Introduction
“Multi Electronics” is a well established retail store of consumer electronics operating in a
city with a dense population. The company markets world renowned brands such as Sony,
LG, Samsung, Philips, etc. Currently Multi Electronics is facing a tough competition from
new retail entrants with many Indian and Chinese Brands.
To emphasize its brand name and image, Multi Electronics has introduced „lifestyle
concepts‟ by launching spacious and aesthetically designed 10 „Multi Centers‟ in the suburbs
of this city. In these Centers, Multi Electronics has displayed its entire product range in a
single showroom and targeted high-end customers in urban areas. So company has
opportunity to introduce different retail formats in order to differentiate their products,
reinforce their brand and serve different customer segments. Now the company purpose is to
improve the staff capacity.
Figure – 2.1
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3. Methodology
3.1 Secondary data.
3.1.1 External sources of secondary data.
Sales force report of Electronic item selling companies
Budget report from Electronic item selling companies
Articles about sales force training
Articles about motivational strategies
Trade association.
Web pages/ internet.
(Refer annexure: 1)
3.1.2 Internal sources of secondary data.
Articles about Electronic instruments
Catalogs.
(Refer annexure: 2)
3.2 Primary data
Studying a retail outlet of Abans and SINGER
(Refer annexure: 3)
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4. Electronic equipment industry
The industry traces its origins to the invention of the two-element electron tube. These
inventions led to the development of commercial radio in the 1920s, which boosted radio
sales to $300 million by the end of the decade.
A revolution in the computer industry that led to the introduction of the personal computer;
resulted in the introduction of computer-guided robots in factories; produced systems for
storing and transmitting data electronically; greatly expanded the market for popular music
and culture; and, in the process, transformed life at home, the office, and the factory.
While U.S. companies are still a major presence in the semiconductor industry
(representing about 40% of world sales in 1998), the consumer items themselves are mostly
made overseas. Worldwide electronic sales were nearly $700 billion in 1997.
Figure – 4.1
Televisions Refrigerators
Personal computers Laptops
Washing machines Photocopy machines
Fans DVD players
Irons Blenders
Boiling kettles Heaters
Hot plates Press cookers
Rice cookers Ovens
Toasters Generators
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5. Sri Lankan electronic instrument retiling market
Abans and SINEGER company playing major role of Sri Lankan electronic instrument
retailing market.
Abans Private Limited have a network of over 230 showrooms throughout Sri Lanka with
their main showrooms located in three floors of their group head office on the main
thoroughfare in the heart of the Colombo City, with 14 more elite showrooms, Abans also
have more than 400 authorized dealers representing them in the remotest rural areas bringing
their products within reach of each family and every household in the country. All products
sold by Abans carry a trusted guarantee of quality and reliable after sales service.
Singer (Sri Lanka) PLC is engaged in retail, wholesale marketing, financing, assembling
and manufacturing and in financial services. The Company markets domestic and industrial
sewing machines, consumer electronics, household appliances, air conditioners, furniture,
agricultural implements, motor cycles, telephones and personal computers, and provides
financing through hire purchase and loans. The Company also manufactures furniture, water
pumps, and paddy threshers and assembles motor cycles and
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6. Market situation of “Multi Electronics”
Designed 10 „Multi Centers‟ in the suburbs of this city
Figure - 6.1
Competitor‟s entrance with
Chinese and Indian brands
Competition from new retail
entrance
“Multi Electronics”
Introduce “Lifestyle‟ concept to
face arising competition.
Display entire
product range in
single room
Target high end
customers in
urban areas
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7. Creating different retail format
The company is already using normal retail format. According to that format Multi
Electronic displayed its entire product range in a single show room. This is sometimes
creating effective for the company achievements. But some situation and also some locations
that format not to be relevant or match. So company has to below things.
Customers who are come into the outlets.
So we have to identify its multi center to multi center.
Customer quantities come into the each outlet to one day.
Customer‟s purchasing power.
How many members come in one family to buy products?
How many times same customer comes in to the outlet before buy the
product?
Considering above factors the company have to create attractive environment with
fulfilling below things.
Car park facilities
Well come arrangements
Product availability
Best product arrangement format
Flexible service
Helpful staff
Attractive environment
Large space to selecting products without crowed
Showing prices clearly
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So the company has to considering market to Multi center to multi center. So outlet format
depend on consumer coming times, ways and quantity come into the outlet one time to
buying electronic instrument in each Multi center located areas.
If the one area outlet customer come in to the outlet with whole family there
must be have big space to them to select products.
Some Multi center located area focus to big consumer market definitely there
must be having big area to large customers.
If there is in outlet easy to capture industrial customers there must be have car
parking facilities and attractive display format to get that customer attraction.
Figure – 7.1
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8. Differentiate the products in retail outlets
Differentiation looks to make a product more attractive by contrasting its unique qualities
with other competing products. Successful product differentiation creates a competitive
advantage for the seller, as customers view these products as unique or superior.
Product differentiation can be achieved in many ways. It may be as simple as packaging
the goods in a creative way, or as elaborate as incorporating new functional features.
Sometimes differentiation does not involve changing the product at all, but creating new
sales promotions. And also displaying products with identify market.
If the one area outlet customer buying different products in entire product range there
must be display the entire product range.
If other area customers have middle level income level there must be display only
moderate pride level products.
Some Multi center located area focus to big consumer market definitely there must
be display in mainly consumer electronic instruments.
If there is in outlet easy to capture industrial customers there must be display the
industrial electronic instruments.
Selling high quality products
Create uniqueness inside the outlets.
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9. Reinforce the “Multi Electronics” brand
Figure – 9.1
Unique differentiation
Easy to select best products in
its Multi centers
Flexible and friendly service
Selling high quality brand
Have strong and high level
brand personality
Attractive retail format
Have experience
“Multi Electronic”
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10. Identify different customer segment
“Multi Electronic” main target market is high- end customers in urban areas. Definitely
they can‟t cater the non urban customers because multi centers in the suburbs of the city and
also there is no electricity facilities in non urban areas. Sometimes there is an electricity
facility but they haven‟t high level income to buy these types of products.
But company can target the middle level consumers in urban areas. Because they need
electric instruments to doing their day to day works easily.
Source: www.cencesandstatictic.lk
Figure – 10.1
Target consumer segment
customers have high
level income
customers have middle
level income
customer have low level
income
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11. Segmenting the market
The company has to identify its market segment. So the company expects to enter the B to
C market and also B to B market with new change. The company has to give consideration to
the target segment.
a) Demographic parameters.
Main target consumers in middle age level.
That person or family income is in middle level and over.
Definitely these product consumers have middle or high level education knowledge.
b) Geographic parameters
Mainly people who are in urban areas mostly consume these types of products.
c) Psychographic parameters
People who are in middle level and high level social classes.
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12. Improving staff capacity to face arising competition
Figure – 12.1
Face to arising competition
Using motivational
strategies
Doing sales training
programs
Create best sales force
structure
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Task 01
13. Sale force structure
I recommend “Market sales organization structure” to “Multi Electronic” company
because it can create effective for the entire product range.
Front Line Staff
Figure – 13.1
Market sales organization structure
Sales Manager
Sales Executives in Multi
centers (10)
Zone Sales Managers
Sales Training Manager
Financial Manager
Managing Director of the
“Multi Electronic”
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Above sales organization structure is an increasing important type of specialization is
market specialization. Sales people are assigned specific types of customers and are required
to satisfy all needs of these customers.
Market sales organization structure is specialize in serving one specific industry and
customer type and basic objective of market specialization is to ensure that sales people
understand how customer use and purchase their products
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13.1 Reasons of using Market sales organization structure
It is effective structure to specialization market.
They serve one specific industry and this structure is relevant for them
It creates easy environment in side of the organization.
It can give profitable sale.
It can create attractive sales force to the organization.
13.2 Disadvantages of using other structures
Those are not suitable for this organization.
It crate difficulties for the organization
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Task 02
14. Sales training program
14.1E-mail
Multi Electronics (Pvt) Ltd,
Queen Avenue,
Colombo 03.
To :
perera@gmail.com
malikad@gmail.com
vikumk@gmail.com
vindyachathana@yahoo.com
kapilanu@yahoo.com
kalpanii@gmail.com
udanim@yahoo.com
abprasadi@yahoo.com
saranikj@yahoo.com
anushea@gmail.com
Subject : Inform the training seasons
Dear all,
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Welcome to the Multi Electronics (Pvt) Ltd. We are decide to organize new training season
for improve your performance. I think it helps to creating new attractive sale force to our
company. Below table is mentioning the relevant details for you.
Tanning session date : 06.12.2012 and 07.12.2012
Tanning session venue : Multi Electronics (Pvt) Ltd Auditorium
Tanning session time : 9.30 am – 3.30 pm
Thank you.
Best Regards
Organizational Communication & Industrial Tanning Manager
(Multi Electronics Pvt) Ltd
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14.2 Agenda 01
(Attachment No: 1)
Multi Electronics (Pvt) Ltd
Tanning session No: 6
Agenda…..
9.30 a.m - 10.30a.m Introduction about situation
10.30a.m - 11.00a.m Job description
11.00a.m - 12.30p.m Break
12.30p.m - 01.30p.m Get staff ideas
01.30p.m - 02.00p.m Break
02.00p.m - 03.30p.m Discuss how to face
problems
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14.3 Agenda 02
(Attachment No: 2)
Multi Electronics (Pvt) Ltd
Tanning session No: 7
Agenda…..
9.30 a.m - 10.30a.m Give new methods
10.30a.m - 11.00a.m Show videos
11.00a.m - 12.30p.m Break
12.30p.m - 01.30p.m Ask questions in audience
01.30p.m - 02.00p.m Break
02.00p.m - 03.30p.m Give certificate for
participation
and ending the
session
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15. Front level staff of the “Multi Electronic” company
At the same time, Front Line Employees are feeling more change in the workplace than
ever before. Managers and Supervisors have to deal with employee behavioral issues as a
result of this turmoil, requiring skills in areas where they've had little or no training.
Front Line Employees want your business to be successful. By providing the right
training, to the right people, in the right amount, at the right time, they can help the company
in below ways.
Reduce costs
Increase profits
Improve quality
Enhance employee loyalty
Leverage resources (internal and external)
Improve customer service and relationships
Re-design the way the business is run
Re-define performance metrics
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16. Objectives
The sales techniques and selling ideas here have all been effective at some stage. Many are
still widely used. Think about what you are selling, the market that you're selling into, the
people you meet in the selling process, and use what will help you sell better. If you are
managing sales people, the best results generally come if you allow sales people to work to
their strengths; in a way that is natural to them.
New sales techniques, sales training and selling methods are continually developing. This
free sales training section covers sales and the selling process from its early beginnings,
through to the most modern selling techniques and ideas..
Sales and selling terms, and early sales and selling theories appear first in this article; the
most advanced sales methods and ideas are at the end of the section. While early sales
processes still contain some useful techniques and fundamentals, successful selling today
relies on modern selling using collaboration, facilitation, and partnership. Tips are selecting
sales training providers, sales training programs, selling courses and sales management
training.
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18. Evaluation criteria
Successful selling also requires that the product or service is of suitable quality for its
target market, and that the selling company takes good care of its customers. Therefore it's
helpful for the sale person (or anyone else in business for that matter) to work for a
professional, good quality organization. Product development, design and production, service
delivery, and the integrity of the selling company's organization are also necessary for
successful selling, and typically are outside the formal control of the sales person, hence why
internal selling is an increasingly important aspect of the modern sales role.
Source: www.traningmethodology.com
Figure – 18.1
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Task 03
19. Trainee sales executives
Trainee sales executives have so many duties, because they are before training people.
And also they have experiences.
Maintaining and developing relationships with existing customers via meetings,
telephone calls and emails.
Visiting potential customers for new business.
Making accurate, rapid cost calculations, and providing customers with quotations.
Negotiating the terms of an agreement and closing sales.
Gathering market and customer information and providing feedback on future buying
trends.
To be a successful sales trainee you'll need to have:
The ability and desire to sell.
Excellent communication skills.
Strong commercial awareness
A confident and determined approach.
Resilience and the ability to cope with rejection.
A high degree of self-motivation and drive.
The ability to work both independently and as part of a team.
The capacity to flourish in a competitive environment.
Fluency in a foreign language may also be helpful.
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20. Motivational strategies
Figure – 20.1
1. Achievement – put your people in a position to achieve their goals; nothing breeds
success, like success.
2. Positive feedback – recognize your people when they do things right.
3. Autonomy – understand their need to direct their own work and determine how to
leverage that in your business.
4. Mastery – provide opportunities for your people to learn and encourage their desire to
improve.
5. Purpose – connect your business purpose with each individual‟s work and their own
personal purpose and desire to contribute to something beyond just a job.
Motivation methods
Intensity DirectionPersistence
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To motivate behavior, the organization needs to provide an effective reward system. An
effective reward system has four elements:
Rewards need to satisfy the basic needs of all employees.
Rewards need to be included in the system and be comparable to ones offered
by a competitive organization in the same area.
Rewards need to be available to people in the same positions and be
distributed fairly and equitably.
The overall reward system needs to be multifaceted. Because all people are
different, managers must provide a range of rewards - pay, time off,
recognition, or promotion. In addition, managers should provide several
different ways to earn these rewards.
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21. Motivate trainee sales executives
Happy, motivated employees are something every business owner wants because those
employees are more productive. Job performance is a function of ability plus motivation.
Assuming your people have the ability, what motivates your employees? Do you know? If
not, how can you motivate them?
Motivating employees is a core component of most management training. If you‟ve had
any type of training in management and motivation theory, it may have, in part, been based
on the work of Frederick Herzberg. His theory asserts that the most powerful motivator in
our lives isn‟t money. It‟s the opportunity to learn, grow in responsibilities, contribute to
others and be recognized for achievements.
Figure – 21.1
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22. Sales force motivational model
Figure – 22.1
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23. Findings and conclusion
23.1 Findings
Using effective sales force structure can creates value for the business. And also company
has to use attractive motivation methods to get staff high performances.
I think the company has to doing well encouragement to face the arising market
competition. If the Multi Electronic doing well arrangement in its sales force with high
motivation and successful training it can win the market.
23.2 Conclusion
Electronic equipment industry is highly competitive market. And also its life time depends
on quality products and attractive service. And also outlets environment layout is also
important. If Multi Electronic is giving high consideration for above things it can be a leader
in the industry.
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24. Recommendation
I recommend Market base sales structure is suitable for this company. And also the
company has to doing effective sales training in two days and must use well motivation
methods to get best performance in the front line staff.
Multi Electronic doing above strategies effectively definitely it can get high share of the
market.
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25. Annexure
1.
Motivation Strategies
To some extent, a high level of employee motivation is derived from effective
management practices. To develop motivated employees, a manager must treat people as
individuals, empower workers, provide an effective reward system, redesign jobs, and create
a flexible workplace.
Empowering employees
Empowerment occurs when individuals in an organization are given autonomy, authority,
trust, and encouragement to accomplish a task. Empowerment is designed to unshackle the
worker and to make a job the worker's responsibility.
In an attempt to empower and to change some of the old bureaucratic ideas, managers are
promoting corporate entrepreneurships. Entrepreneurship encourages employees to pursue
new ideas and gives them the authority to promote those ideas. Obviously, entrepreneurship
is not for the timid, because old structures and processes are turned upside down.
Providing an effective reward system
Managers often use rewards to reinforce employee behavior that they want to continue. A
reward is a work outcome of positive value to the individual. Organizations are rich in
rewards for people whose performance accomplishments help meet organizational objectives.
People receive rewards in one of the following two ways:
Extrinsic rewards are externally administered. They are valued outcomes given to
someone by another person, typically a supervisor or higher level manager. Common
workplace examples are pay bonuses, promotions, time off, special assignments,
office fixtures, awards, verbal praise, and so on. In all cases, the motivational
stimulus of extrinsic rewards originates outside the individual.
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Intrinsic rewards are self-administered. Think of the “natural high” a person may
experience after completing a job. That person feels good because she has a feeling of
competency, personal development, and self-control over her work. In contrast to
extrinsic rewards, the motivational stimulus of intrinsic rewards is internal and
doesn't depend on the actions of other people.
This last point is worth noting. With the widely developing trend toward empowerment in
American industry, many employees and employers are beginning to view traditional pay
systems as inadequate. In a traditional system, people are paid according to the positions they
hold, not the contributions they make. As organizations adopt approaches built upon teams,
customer satisfaction, and empowerment, workers need to be paid differently. Many
companies have already responded by designing numerous pay plans, designed by employee
design teams, which base rewards on skill levels.
Rewards demonstrate to employees that their behavior is appropriate and should be
repeated. If employees don't feel that their work is valued, their motivation will decline.
Redesigning jobs
Many people go to work every day and go through the same, unenthusiastic actions to
perform their jobs. These individuals often refer to this condition as burnout. But smart
managers can do something to improve this condition before an employee becomes bored
and loses motivation. The concept of job redesign, which requires knowledge of and concern
for the human qualities people bring with them to the organization, applies motivational
theories to the structure of work for improving productivity and satisfaction
When redesigning jobs, managers look at both job scope and job depth. Redesign attempts
may include the following:
Job enlargement. Often referred to as horizontal job loading, job enlargement
increases the variety of tasks a job includes. Although it doesn't increase the quality
or the challenge of those tasks, job enlargement may reduce some of the monotony,
and as an employee's boredom decreases, his or her work quality generally increases.
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Job rotation. This practice assigns people to different jobs or tasks to different people
on a temporary basis. The idea is to add variety and to expose people to the
dependence that one job has on other jobs. Job rotation can encourage higher levels of
contributions and renew interest and enthusiasm. The organization benefits from a
cross-trained workforce.
Job enrichment. Also called vertical job loading, this application includes not only an
increased variety of tasks, but also provides an employee with more responsibility
and authority. If the skills required to do the job are skills that match the jobholder's
abilities, job enrichment may improve morale and performance.
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2.
Knowledge management is an approach that can benefit all staff within an organization,
from senior management, to front-line staff, and out into the field.
Up to now however, many of the case studies have focused on management and consulting
staff, and have not addressed the unique environment that is the public face of an
organization.
This article looks at the way front-line staff operate, and how knowledge management can
be used to meet their needs.
This article does not provide the final answers to the challenges of bringing improved
knowledge management to front-line staff. Instead, it is hoped that it will further encourage
discussion and research in this area.
The front-line environment
It is important to gain an understanding of the environment in which front-line staff
operate, as this is very different to the management and administrative environment in most
organizations.
Some key characteristics:
Front-line staff typically has very defined job roles.
Front-line staff has extensive interaction with customers or the public.
There is a strongly hierarchical management structure in front-line environments.
This typically goes from senior management to sector (area) managers, through to
branch managers, team leaders, and then finally to customer service staff.
Lines of communication follow this hierarchical „chain of command‟.
Most front-line staff holds relatively junior positions within an organization.
The majority of front-line roles are non-professional.
Front-line staff typically receives a considerable amount of structured training when
first employed.
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There are very strong time and resource pressures on the front-line environment.
Front-line environments are often closely monitored through the use of a variety of
metrics. (This is particularly true in call centers.)
The organization is legally liable for the actions of front-line staff.
Front-line staff has limited opportunities to innovate the ways in which they work.
38. ~ 38 ~
3.
Retail Formats: Part 1
Now that we have presented ways in which retailers can be classified, we now use these
categories to distinguish general formats or business models that best describes a retail
operation. These categories are designed to identify the primary format a retailer follows. In
some cases, particularly with the advent of the Internet, a retailer will be involved in more
than one format.
Mom-and-Pop – Represent the small, individually owned and operated retail outlet.
In many cases these are family-run businesses catering to the local community often
with a high level of service but relatively small product selection..
Mass Discounters - These retailers can be either general or specialty merchandisers
but either way their main focus is on offering discount pricing. Compared to
department stores, mass discounters offer fewer services and lower quality products.
Warehouse Stores – This is a form of mass discounter that often provides even lower
prices than traditional mass discounters. In addition, they often require buyers to
make purchases in quantities that are greater than what can be purchased at mass
discount stores. These retail outlets provide few services and product selection can be
limited. Furthermore, the retail design and layout is as the name suggests, warehouse
style, with consumers often selecting products off the ground from the shipping
package. Some forms of warehouse stores, called warehouse clubs, require customers
purchase memberships in order to gain access to the outlet.
Category Killers – Many major retail chains have taken what were previously
narrowly focused, small specialty store concepts and have expanded them to create
large specialty stores. These so-called “category killers” have been found in such
specialty areas as electronic (e.g., Best Buy), office supplies (e.g., Staples) and
sporting goods (e.g., Sport Authority).
39. ~ 39 ~
Department Stores – These retailers are general merchandisers offering mid-to-high
quality products and strong level of services, though in most cases these retailers
would not fall into the full-service category. While department stores are classified as
general merchandisers some carry a more selective product line. For instance, while
Sears carries a wide range of products from hardware to cosmetics, Nordstrom
focuses their products on clothing and personal care products.
Boutique – This retail format is best represented by a small store carrying very
specialized and often high-end merchandise. In many cases a boutique is a full-
service retailer following a full-pricing strategy.
40. ~ 40 ~
26. References
Ingram, Laforge, Avila, Schwepker and Williams (2007) Sales Management.6th
edn. India
www.motivation.com
www.salesforcetraning.com
www.frontlinemanagement.com
www.cences&statistic.com