How Personal Selling at Enviro-Cars Ltd Supports Other Promotional Activities - Assignment Example

Assignment Front Cover Sheet PART To be completed by the AMAZONA ABAZI ID Number LON131107018 Module (e.g Business Environment) SALES PLANNING AND ORGANISATIONS Course (e.g. HND Business ) HND-BUSINESS Assignment Title SPO (INDIVIDUAL ASSIGNMENT) Module Lecturer KULDEEP PRADHAN Assignment Due Date 17TH APRIL 2015 Submission Date 17TH APRIL 2015 First submission [Y/N] …. Resubmission (as per lecturer’s instruction) [Y/N] …. No cheating, dishonesty or plagiarism will be accepted from any learner who enrols for a qualification/course. All sources must be properly referenced using the Harvard Referencing System. Failure to properly reference any source constitutes plagiarism whereby the learner will be subject to disciplinary action, and will likely refer (fail) a unit. All assignments must be submitted in electronic format through http://moodle.lsbm.ac.uk. This allows the College to check for plagiarism. PART 2 – Student declaration By submitting this work to LSBM, I confirm that I have read and understood the Dishonesty and Plagiarism Policy that is applicable to all assessments and assignments submitted by me. I also confirm further that the work submitted here is my own work, save for where indicated by proper referencing. Should I not abide by the policy and be found guilty of plagiarism by my course lecturer or any other LSBM or appointed staff member I shall be bound by the decision of that lecturer and/or staff member as well as the terms of the Dishonesty and Plagiarism Policy. Contents Contents 2 Introduction 3 Task 1 4 1.Explain how personal selling at Enviro-Cars Ltd supports other promotional activities. 4 2.Compare buyer behaviour and decision making process in different situations with special reference to Enviro-Cars Ltd. 5 3.Analyse the role of the sales teams in the overall marketing strategy for the Enviro-Cars Ltd. 7 Task 3 8 1.Explain how sales strategies are developed in line with corporate objectives. 9 2.Explain the role of an organisation’s recruitment and selection procedure you forgot explain the procedures. 10 3.Evaluate the role of motivation, remuneration and training in sales management. 11 4.Explain how sales management organise sales activity and control sales output. 12 5.Explain the use of databases in effective sales management. 13 Task 4 14 14 1.Develop a sales plan for any ONE category of New Look’s core product-line. 14 2.Investigate opportunities for selling internationally into any one emerging market. 15 3.Investigate opportunities for using Exhibition/trade-fairs. 16 Conclusion 18 References 19 Introduction This study is centred towards analysing the concept of selling. Selling plays an integral part in success of any business organization. Sales skills are utilized by all individuals in order to deliver best possible outcomes. Personal selling should be well aligned with business marketing strategy. There are sales situations encompassed within the approach of selling. Sales situations might change across the process such as selling of products to customers or selling any form of industrial equipment to corporate. It is observed that some sales executives are inclined towards selling standard services or products, whereas in another cases more of personalization or customization is facilitated. In this study various aspects of personal selling will be outlined. Modern selling comprises of wide array of characteristics like customer retention, database management, product marketing, customer relationship management, problem solving techniques and value addition. Marketing strategy is not only confined to designing effective advertisement campaigns but its major goal of product selling needs to be accomplished. There are circumstances when creative advertisement campaign is not able to deliver required results. Real world organizations focus on enhancing skills and capabilities of sales personnel. These individuals usually interact with customers. Sales personnel are required to possess high communication skills so that they are able to convince customers toward purchasing a product. There exists a thin line of distinction between marketing and sales. Marketing encompasses all possible tasks from reaching to persuading prospects. On the other hand, selling is about doing all possible things essential for closing a sale. Task 1 1. Explain how personal selling at Enviro-Cars Ltd supports other promotional activities. Personal selling is an important component of promotional mix. There are several factors encompassed within promotional mix as highlighted in figure1. Figure 1: Marketing Communication Mix As per figure1, marketing communication mix includes multiple factors like sales promotion, personal selling, events, public relations, direct marketing, interactive marketing and advertising. Enviro-Cars Ltd. is witnessing serious challenges due to high turnover of experienced sales personnel and decreasing sales volume of second hand cars. Economical and environmental friendly aspect of its products can only be communicated through trained sales personnel. Other promotional activities like broadcasting advertisements, sales promotions, event sponsorship, etc. is well supported through personal selling (Fill, 2006). Direct interaction with customers or business is necessary while transmitting brand message or brand offerings. To be more precise personal selling offers a platform whereby company can come in contact with potential buyers. The decreasing sales volume denotes that customers are not able to identify benefits associated with product (Dahlen, 2009). Personal selling is a medium to spread awareness amongst target customers in order to gain desirable profit margins. Personal selling is a procedure where sales force is utilized by a company in order to gain high revenue margins. Product or service is sold to customer via a direct face to face interaction. Personal selling usually requires sufficient product knowledge of sales personnel along with appearance and attitude. Examples of personal selling are well witnessed in cosmetic centres and various departmental stores. In these centres customers are provided required advice on how to apply a product and its associated benefits. Products which are highly complex such as Enviro Cars or that constitutes high prices are basically sold by companies using personal selling technique. Personal selling is linked with advertising since sales force communicate information based on advertisement campaigns. It’s a part of sales promotion because customers are contacted personally and convinced for purchasing a product. Personal selling is also correlated with publicity because companies use talented individuals in order to communicate brand message to end customers. Direct or interactive marketing can also be related to the approach of personal selling. This is simply because personal selling establishes direct relationship with customer base and even high profit margins is generated through strong interactions with customers. 2. Compare buyer behaviour and decision making process in different situations with special reference to Enviro-Cars Ltd. Decision making process and buyer behaviour varies from one situation to another. It can be stated that stimulus response aspect plays a vital role in carrying forward decision making procedure. The stimulus-response model shall help to distinguish the changing scenario of buyer behaviour and decision making procedure. This model has been further elaborated in figure2. Figure 2: Stimulus-Response Model (Alba and Hutchinson, 2008) According to figure2, 4Ps of marketing mix forms the marketing stimuli and other stimuli’s are economic, political, technological and social factors. In overall context impact of these stimuli’s is observed in buyer behaviour in terms of product choice, retail choice, purchase timing, purchase frequency, dealer choice, purchase amount, etc (Assael, 2005). For instance, in case of Enviro-Cars Ltd customers can switch their brand preference if maximum percentage of their community members were inclined towards some other brand. This change in buyer behaviour is due to significant impact of social stimuli. On the other hand, economic conditions are directly associated with price of the product (Cheverton, 2005). Economic instability might restrict customers from undertaking purchase decision of product offered by Enviro-Cars Ltd. This is simply because price of such product is high and lies outside affordability range of customers. B2B sales are associated with businesses whereas B2C sales are related to customers. Businesses usually develop processes to make rational decisions. On the other hand, companies design marketing strategies to tap aspirations and emotions of customers. The buying behaviour of customers and business initiates with need identification. Businesses usually identify need in context of business strategy such as need towards stock ordering process, etc., whereas customers’ need is influenced by marketing or advertising techniques. Product specification is another component of buyer behaviour process. It can be stated that customers are aware about intricacies associated with products. They are also likely to shift from required specifications if there is availability of better products in the market place. For instance, Enviro-Cars is offering better product features to customers but if a more effective product is launched in the marketplace, then customers shall shift towards newly launched product. Product specifications are standardized for business purpose as companies are less likely to shift towards other products (Assael, 2005). Businesses are usually observed to evaluate suppliers more in comparison to customers. Before a purchase are made companies take quotations from more than one supplier. On the other hand, customer’s purchase decision is based on comparison shopping and brand reputation. Expensive products such as purchasing cars require review analysis by customers (Alba and Hutchinson, 2008). Purchase decision in B2B process is a long procedure since decision is taken after consulting with committee members. In B2C process purchase decision revolves around a single individual. Impulse purchases are observed more in consumers rather than businesses. Post purchase behaviour usually varies from businesses to customers. Businesses are long term customers and requires continuous collaboratively working. Companies also have to resolve complaints from customers at a rapid pace. Factors affecting decision making process in B2B and B2C are influencers, presence of alternatives, cost factors, benefits associated with product or service, need recognition and contract fulfilment. 3. Analyse the role of the sales teams in the overall marketing strategy for the Enviro-Cars Ltd. Enviro-Cars Ltd is offering environmental friendly or electric cars to its customer base. The brand message of this company is a brand known for providing economical or environmental friendly cars. Marketing strategy can be defined as a framework for communicating brand offerings to target customer. There are different forms of media channels utilized to communicate brand message. However sales personnel play the key role since they not only transmit brand message but even interact directly with customers to resolve their respective queries. Sales team possesses a unique role in terms of convincing customers to purchase a particular product or service (Simerson, 2011). The sales executives of Enviro-Cars Ltd undertake the role of delivering brand message along with persuading them for final purchase decision making. Spreading awareness and transforming it into sales are basic features within sales personnel. Team selling approaches is based on three aspects such as planning, partnership and follow through aspects. Planning stage in team selling process is inclined towards credibility, pleasantries and agenda statement. Sales team is actively indulged towards recognizing buying motive. The ability to listen properly is an effective sales technique and is also incorporated within sales team of Enviro-Cars. For example, many large companies like Nestle or Toyota, acquire information from market regarding their specific taste and preferences. Enviro-Cars are focused on developing environmental friendly cars. This company gathers information from consumer market in order to analyze their product demand in the market place. On basis of this procedure sales team can identify prospects and convert them into a deal. Partnership is second approach whereby companies build relationship with customers to understand their interests and align it with product specifications (Gray, 2007). By follow through approach, sales team enters into a continuous following up with client base in order to generate sales. Task 3 1. Explain how sales strategies are developed in line with corporate objectives. Sales strategy can be defined as a plan set for sales force of a company. In any firm, sales strategy helps in effectively allocating sales resources so that revenue margin is increased and selling costs is decreased. Corporate strategy is an action plan formulated by management in order to accomplish corporate objectives. Plastic Products Ltd needs to stay aligned with growing competition and increased consumer market demand. Its sales strategy is to recruit new regional representatives so as to facilitate better sales margins. This strategy is strongly correlated with corporate strategy which is to remain competitive in the market place and acquire desirable profit margins. Sales strategies are a major part of corporate strategies. The major objective of an organization is to gain high revenue margins and large base of customers. Sales strategies is all about acquiring information of prospects and converting them into a closed deal. This in turn initiates revenue margins which is beneficial for a company (Simerson, 2011). While corporate strategies are framed, sales strategies occupies the central component, since it is inclined towards interacting with target audience. In context of plastic products, corporate objectives shall be to gain high revenue margins and establish a strong position in the market place. Corporate objectives of this company also states gaining high customer loyalty and retaining employees for longer period of time. Sales strategies of Plastic Products are aligned with motivating sales team by offering incentives and analyze customer demand. Products being offered to customers shall be totally based on this form of consumer market demand. Sales strategies are linked with the company’s corporate objectives. This is simply because both strategies are focused on gaining high revenue margins and set strong market position for long-term. 2. Explain the role of an organisation’s recruitment and selection procedure you forgot explain the procedures. Recruitment and selection procedure plays a critical role in terms of achieving set corporate goals and objectives. An organization is usually benefitted from a large base of talented employees. It is essential that skilled individuals are hired on board so as to ensure that job requirements are properly satisfied. The role of recruitment and selection procedure also holds significance for Plastic Products Ltd. This procedure is beneficial in context of gaining competitive advantage (Gray, 2007). Organizational performance and effectiveness is improved with the support of recruitment and selection procedure. High-calibre employees can be attracted and retained only through designing appropriate recruitment and selection mechanism. Recruitment and selection procedure have certain benefits for all business organizations. A recruitment strategy is incorporated by all industries. Main advantages are potential gaps prevalent in organization can be efficiently eradicated. These gaps are related to operational areas. For instance, many companies recruit individuals for handling complex scenarios. It is a proactive measure to recruit employees of high quality so as to acquire long term effect of hiring decisions (Gray, 2007). The major advantage of recruitment and selection procedure is to hire talented individuals who are capable of fulfilling job responsibilities and contributing towards profit margins of the company. There are certain important steps to be followed in recruitment and selection process. Firstly identification of job vacancy and evaluating need for new recruitment. Human resource personnel should be able to analyze requirement for new individuals in terms of accomplishing tasks. The next step is to develop description about job position. Responsibilities and duties related to job position are highlighted in this particular process. This step would mainly encompass wide array of information such as general information, essential job functions, position purpose, preferred qualifications of individuals and minimum requirements for job position. In the next phase recruitment plan is structured. Recruitment plan comprises of essential elements like job posting period, placement goals, probable advertising resources, diversity agencies and resume banks. Job vacancies are usually broadcasted through print media, job fairs, social media, campus recruitment, etc. In the selection process, applicants are firstly shortlisted for further interview process. After interview, final candidates are selected by selection committee for job position. These processes are beneficial for companies like Plastic Products since it helps in recruiting best talent on board. Multiple stages in recruitment and selection process, starting from posting job positions in different media, enable the company to hire suitable candidates. 3. Evaluate the role of motivation, remuneration and training in sales management. Motivation can be stated as a factor that stimulates individuals to perform well in an organization. There are wide ranges of psychological factors which motivate individuals to perform better in workplace such as desire for success, money, job satisfaction, teamwork, recognition, etc. Maslow’s need theory and Herzberg’s theory can be linked with motivational concept of sales management. Elements like job satisfaction, incentives, appraisals, recognition, etc., help in developing a better sales team. On the other hand, remuneration also plays a critical role since it motivates sales executives to achieve respective sales targets (Hoskisson, Hitt, Duane and Harrison, 2007). Training and development programs on a continuous basis are needed to incorporate necessary skills and knowledge within sales team to perform better and achieve set targets. Herzberg’s theory on motivation is an important concept since it integrates three concepts of workplace such as motivation, training and remuneration. Two-factor theory outlines those factors which cause job satisfaction and factors responsible for job dissatisfaction. Remuneration and training are factors that initiate motivational level of employees (Simerson, 2011).Hygiene factors and motivators are two aspects of Hertzberg’s two factor theory. Motivators are closely knitted with challenging workplace environment, responsibility and job recognition. This kind of positive satisfaction is initiated amongst team members through proper remuneration program and continuous training programs (Hoskisson, Hitt, Duane and Harrison, 2007). There are companies such as Coca Cola, McDonald’s, etc., who are actively indulged into designing best remuneration plan. This in turn develops a productive sales force for the company. Sales management is itself a job profile which requires constant motivation to perform well. Remuneration or salary can be more closely linked with hygiene factors. This is because hygiene factors initiates higher motivation and its absence results into dissatisfaction. Training is closely knitted with motivating individuals to perform well and set high performance targets. It incorporates necessary skills and knowledge within individuals. This in turn helps them to perform well in workplace scenarios. Cognitive learning approach forms the basis of training and development programs. This form of learning incorporates individual interests and further knowledge base is developed through training initiatives. Cognitive learning includes employees as an essential component in training programs. 4. Explain how sales management organise sales activity and control sales output. Sales management is directly linked with planning, direction and control of various personal selling activities. There are different functions encompassed within sales management like recruiting, motivation, training, etc. Sales activity can be organized in multiple ways like product basis, geographical basis, etc. Region wise sales activities can be organized as in case of Plastic Products Ltd. Three types of controls are exhibited on sales operations like output controls, behaviour controls and clan controls. Plastic Products Ltd., over the years has exercised behaviour controls in order to facilitate direct supervision and set rules or standards for sales operations. Sales force organization is all about aligning team members with corporate goals and consumer taste or preferences. Companies organize sales force by identifying their respective expertise which shall be beneficial for the sales process. For instance, in automobile companies, sales personnel are well groomed, since they represent a brand and high end product. Geographical organizational structure is most appropriate for sales strategies as it helps to focus on region wise sales. The sales potential shall be distributed as per geographic demand. Workload usually differs from one region to another. It can be stated that sales potential is greatly dependent on percentage of workload. This strategy would not be similar to a company to selling electrical devices since then inclination would be towards developing a large base of sales people to generate high profit margins. Sales output is controlled by real world organizations through various forms of control reports. These reports are scrutinized by sales managers such as daily sales report, weekly sales report, monthly sales report, and control card of customer contracts and analysis of quarterly customer sales. It can be stated that daily sales report is maintained by all companies to have a clearer picture regarding output of sales force and necessary steps to be undertaken. Sales output can be controlled by multiple ways as it is dependent on workforce efficiency. Sales budgeting are a primary mechanism in such sales output control. Budget is structured first and then sales strategies are implemented. Sales forecasting is a primary motive for any organization. This form of forecasting is all about projecting sales and then aligning sales team to accomplish objectives. Performance management is an innovative way through which sales output is controlled. Sales incentives are offered to all sales personnel in context of respective sales target. 5. Explain the use of databases in effective sales management. Database management is an important concept in overall sales management. It can be stated that sales executives basically require necessary information and data to attract customers and close a deal. This kind of database management encompasses information about customers in terms of their address details, last purchase history, customer interests, etc (Wallace, 2004). On basis of this valuable information effective sales strategies can be framed to acquire and retain wide base of customers. Persuading or convincing tactics adopted by sales executives is aligned with such databases. Database management system is responsible for reducing amount of paper work. This system encompasses all possible customer details that are essential for closing a deal. In intense competitive scenario it becomes essential to acquire information about prospects in least possible time. Database enhances accessibility level of companies. For instance, there are companies which utilize database management system to integrate operations of different departments (Wallace, 2004). There are other advantages of database such as reduction in costs, elimination of human errors, information storage about customer’s opinions or views or feedback, etc. These details can be utilized by sales force in later period of time. Database is an effective way to manage sales. It comprises of all essential information which can initiate product sales. Database is required not only for keeping details about product but it even encompasses other details. These details are associated with performance of sales person. It helps organization to keep track about individual employee performance and then given them reward for exceptional performance. Task 4 1. Develop a sales plan for any ONE category of New Look’s core product-line. New Look is a fashion retail company based in United Kingdom. There are wide array of fashionable items offered by the firm and encompasses a range of outlets located across the globe. Sales plan shall be prepared for fashionable shoes being manufactured by the company. Consumer market trend is inclined towards purchasing fashionable shoes. The first stage of the sales plan would be gathering essential market information. This information will outline market demand in current scenario and future years. In the next phase of the plan product features would be communicated across target customers. This shall be followed by evidence of product growth and success. It can be stated that customers can be attracted and retained through portraying product benefits. Sales plan would even comprise of resolving any form of queries possessed by customers. Relationship building is the primarily step in a sales plan. There has to be a bond developed with customers in order to analyse their needs and offer product accordingly. The sales plan for shoes of New Look has been illustrated below. It basically highlights sales volume for initial first year. Different types of shoes are represented as product1, product 2, product 3 and product 4.   quantity average price total sales value % gross margin total gross margin product 1 9000 169 1521000 40% 608400 product 2 5000 179 895000 40% 358000 product 3 6000 159 954000 40% 381600 product 4 10,000 229 2290000 40% 916000 Totals 30000   5660000 40% 2264000 2. Investigate opportunities for selling internationally into any one emerging market. New Look has been able to acquire sufficient market share across the globe. The company offers quality products to customers located around the world. With growing economic stability there is high demand towards fashionable clothes and accessories. China can be one of the emerging markets which can be targeted. In China there exists high demand towards fashionable shoes. Chinese customers prefer to buy stylish shoes that go along with their fashionable outfits. The major opportunity for the company is less number of players in the market place. China is an emerging market with more number of buyers and less players. Economic stability and favourable social conditions are other factors which shall enable the company to acquire desirable profit margins in Chinese market. On the other hand, selling internationally helps an organization to build competitive advantage that might have been exhausted in operating regions. Entry strategy for Chinese market shall be building franchisee stores across the area. Beijing can be a profitable market for the company. This is because consumer market demand for fashionable products is relatively high in Beijing. It is an emerging market with great scope for further growth and development. Legal issues indicate collaborative working approach between company and government (Fill, 2006). Local competition is relatively low in Beijing and this shall prove to be beneficial for New Look (Alba and Hutchinson, 2008). Customer segments in Beijing belong to mostly upper class segment and prefer to wear fashionable clothes or accessories. Third party logistics and franchised stores would be an effective strategy for New Look in Beijing. Mission of the company would be to gain high profit margins in next few years. Vision of the company is to set its position as number one Fashion Retail Company in Beijing and nearby regions. Objectives of this firm are to gain market presence in least time possible and analyze current market trends. Beijing is a suitable option for the company since people living in this region are fashionable and prefer to purchase fashionable clothes. 3. Investigate opportunities for using Exhibition/trade-fairs. Exhibitions or trade fairs offer immense opportunities to business organizations. This concept is a formal structure adopted to demonstrate product range or services to customers in order to initiate sales. Customers can view products in exhibitions and companies can analyse market competition effectively. Exhibitions are organized so as to meet lapsed and existing base of customers. A list of prospects can be made through these exhibitions along with detailed information about marketing channels. It even provides opportunity to execute primary research in terms of analysing market competition. Exhibition enables an organization to evaluate effectiveness of all forms of media and select most appropriate one for business operations. Exposure to various media channels is the biggest opportunity offered to organizations. New Look can explore the concept of exhibition in order to interact directly with Chinese customers and analyse their specific needs or wants. This shall serve as a promotional mechanism to launch a new product into an emerging market. It would even help to build long term relationship with external stakeholders. Exhibitions or trade shows is a mechanism by which companies can advertise effectively to target customers. This serves as a marketing strategy for the company. Brand awareness can be developed by New Look through adopting the concept of trade shows or exhibitions. New Look is a new player in Chinese market and this kind of exhibition would initiate awareness in consumer market. This strategy is suitable for the company since it ensures wider reach of consumer market. Exhibitions or trade shows are basically available for diverse target audience. This enables promoting product for broader target audience. In any company such as New Look, exhibitions play a significant role in terms of gaining feedback from wider consumer market segment (Queensland Government, 2015). It even encompasses opportunities for New Look in context of business to business trading and generating customer database for future sales. There are many companies promoting their product line or service through exhibitions or trade fairs. These exhibitions are of CIPTE, Wireless China, CIFBE, Aviation Expo China and ADEX China. Beijing constitutes some of the biggest trade shows or exhibitions in comparison to neighbourhood regions. Conclusion As per this study, sales planning are an important factor behind success of any organization. Sales planning are not only about designing sales strategy but even motivating sales executives to perform well. Motivating factors basically changes from one organization to another. For instance, in some companies sales executives are motivated through providing incentives, rewards and recognition, appraisals, etc. Remuneration and training are also vital factors in terms of sales management. Effective training programs enable sales executives to adopt required skills and knowledge in order to accomplish set targets. Sales team of any organization is largely dependent on databases. These databases provide required information of clients which are required during framing sales tactics. Sales strategies are always closely knitted with corporate strategies. In overall context, sales strategies form an essential part of corporate strategies. Sales management is related to planning, controlling and executing. A sales plan is based on information gathered from the market place which can be related to product or service. It is important for sales executives to evaluate market needs and wants. Product promotion is totally based on this market information evaluation. Organizational recruitment and selection also contribute towards building a productive sales team. Sales organization and control helps a firm to set high targets and control their efficiency level. This study even revealed the concept of buyer behaviour and its impact on purchase decisions. References Alba, J. W., and Hutchinson, J. W., 2008. Dimensions of consumer expertise. 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Strategic planning: a practical guide to strategy formulation and execution. USA: ABC-CLIO. Queensland Government., 2015. Benefits and risks of trade shows and exhibitions. [Online] Available at:https://www.business.qld.gov.au/business/running/marketing/promoting-business-show-exhibition/benefits-risks-shows-exhibitions [Accessed 11th April 2015]. Read More