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Building an Australian Sales Team - Telstra Company - Case Study Example

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The paper "Building an Australian Sales Team - Telstra Company " is a great example of a marketing case study. This is a report provides a detailed structure showing salary and remuneration packages as well as incentives and training of sales teams of Telstra limited in order to maintain the market position for the best telecommunication services…
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TELSTRA CORPORATION LIMITED Name Institutional affiliation Table of Contents Table of Contents 2 Executive Summary 2 Sales Team Structure 4 Organisational Hierarchy 5 Sales Team Distribution 6 Roles and Responsibilities 7 Regional Sales Managers 7 Remuneration 10 Employee Expenses 11 Organisational Expenses 11 Total Budget Expenditure 13 Conclusion. 13 References 14 Executive Summary This is a report provides a detailed structure showing salary and remuneration packages as well as incentives and training of sales teams of Telstra limited in order to maintain market position for the best telecommunication services. We face strong competition in attracting the best new customers and in retaining our tenured clients. In this highly competitive marketplace we have allocated $7.5 million in incremental funds for retention and for related departmental support costs. The sales director is Brendan Hooper The Sales director is assisted by his assistant Neale Hooper to coordinate with the sales manager at each district The sales team structure is modelled geographically. This enables the model to have stronger relationships with the population in order to capture potential customers. In each sector, there is a regional manager. Also, there is sales team in every district. This enables the company to have independent bodies who help to account for each other. The structure enables the company to meet t particular needs of the customer. A sales team hierarchy is significant to Telstra as it showcases the team structure. Implementing the team structure is important so that all efforts manifested by a team reach to the customer in all sectors of Australia. The co-ordination and corroborations of the teams enhance positive progress of the Telstra company. This reports outlines the responsibilities expected from Telstra employees. So as to motivate the employees, Telstra has created remuneration packages so as award to the best performing workers in the sales team. The report shows details of the remuneration packages for the sales and management teams. Also, salaries and expenses are shown in the report (Dalrymple, 2004). Sales Team Structure As Telstra operates in communication, electronic and information technology products and services sector, the efforts and dedication to delivering customer need will enhance and help the company attain a revenue of $50M. The Company focuses on a configuration that is geographically based as a result of the possible expenses that Telstra can incur in the market. With 6 regional managers and 60 employees, the company is able to communicate easily and well with the customers and its employees. The Telstra structure helps each employee or sales teams to communicate easily and frequently thus enhancing gathering ideas and raising organisation concerns. Therefore, the structure enhances utility improvement of the workers hence raising the individual voices, sense of value and self-esteem of the employees. In the long run, Telstra will incur less operational costs as well as minimising the travel costs. Organisational Hierarchy As the figure shows, the sales controls many activities in a company. The board recently changed a part of the structure where each branch in the country, there is a sales manager who represents the sales director to make work easier. The national sales director co-ordinates reginal directors stationed in each branch of the company. National sales director Western region sales manager Northen Territory sales manager Queens land sales manager South region sales Manager New south and victoria region sales manager NZ regional sales manager Wholesale/Retail reps Wholesale/Retail reps Wholesale/Retail reps Wholesale/Retail reps Wholesale/Retail reps Wholesale/Retail reps Sales Team Distribution Telstra Company assigns work to its employees based on the regional population as shown below. Regions Managers Wholesale Reps Retail Reps Western Region 1 5 Northern region 1 1 South region 1 2 Queens land region 1 2 9 New South Wales and Victoria region 1 6 24 New Zeeland 1 1 4 Total 6 9 45 As we can see, the employees are distributed evenly. This means the populations such as New South Wales and Victoria region have more staffs as the districts have more population this reduces the workload of the workers. Also, Telstra Company is able to reach to more costumers and gain new customers due efficiency. On the other hand, regions such as Western, Northen, South and New Zealand have less population. Telstra Company allocates less sales representatives to this region as they have less customers and less workload compared to South Wales and Victoria region this approach provides equality to workers as they have even workload. Also, the approach maximises profits due to its cost-effective nature (Eric, 2015) Roles and Responsibilities National Sales Director – They implement the forecasted company’s plan of selling products. Also, their rose is to supervise the regional sales managers. Responsibilities: To ensure the sales grows steadily over time. Enhances marketing strategies that enhance increased gross profit. Provides sales objectives that Telstra Company expects to achieve by the end of the year They are responsible for Implementing the national sales programs by coming up with sales action plans. Maintains a constant sales volume by balancing the demand and supply. Sets the selling prices and also adjusts them by monitoring costs, supply, demand and competition. Develop strategy alongside the board by mapping the future company markets in Australia and New Zealand. Setting up budget to work within for the whole sales department. Schedules the operation of employees Regional Sales Managers Manages the company sales Responsibilities: The regional managers contribute and recommends the sales ideas on the strategic plans. They participate in the implementation of this strategic plans that include plans to produce products with specifications that the customer wants, provide good customer service, produce quality and timely products that customer wants. Identify the customer needs and wants, enhance system improvements and also implements the necessary changes. The regional managers achieve their objectives by recruiting the employees with the necessary skills. This involves selecting the best person for the job. Also, the sales managers coach the new employees and displaces the employees who do not follow the organisation policy. They review the employee’s performance and issue compensations. Therefore, the regional managers implement policies and ideas. These managers achieve the financial sales objectives by preparing budgets. They first forecast the necessary requirements, they then schedule the expenditure take the needed actions to come up with the corrective actions They help the organisation to get more customers by coordinating and offering counselling to the sales representatives so as to build and further more maintain loyal customers. Through the survey, these managers identify the needs of the customers. They track the competitor’s activities and identify new product opportunities. These managers compel the company’s result thus accomplishing the mission of an organisation. These managers maintain networks and engages in educational opportunities that enable the organisation growth. These managers publish and tracks the spending of the company thus implementing trade promotions (Jones et.al, 2005). Wholesale Representatives This representative engages in business proposals. They engage with the interested and potential clients so that they can persuade them about products offered by Telstra. Responsibilities: They organise and plan every day schedules so as observe the sales outlets by establishing new accounts, obtaining new accounts and accounting for the existing accounts. They study the sakes outlets so as they can be able to adjust details of the sales presentations. They study the existing dealers as their part of the job on focusing on the sales effort They make sure that the management is well informed by submitting the necessary report results. They gather the information in the market to monitor competition Though their results, they recommend on the necessary changes an organisation should make to gain competitive advantage They help to resolve the complains of the customers by gathering proper information investigation and coming up with the necessary resolutions and recommendations Retail Representatives They provide the services to the clients through selling the company products them. Responsibilities: They submit orders to the customers when selling and they refer the product prices in a price list They attend educational workshops so as to maintain and improve their knowledge and be more professional. They keep the historical records and provide them for the purpose of knowing the customer trends. They work with the teams to accomplish the necessary results. Remuneration National Sales Director The sales director earns $150,000 salary, and a $30,000 on bonus. This will happen only if the company achieves all the projected sales and goals Regional Sales Managers The regional manages basic salary is$120,000. the regional managers will get a bonus of $25,000 if they reach all the targeted sales and company goals. The payment is constant to all the regional managers. Therefore, every sales manager will be paid the same basic salary regardless to the district allocated or regardless of the population concerns. Sales Representatives The representatives will get a basic salary of $70,000. Also, the Retail representatives will earn a bonus of $15,000 if they meet the projected sales target of a company. The sales representatives will get a bonus of $10,000 upon achieving the company’s projected sales and goals. Note: All Stelstra earn an additional 9% superannuation over the year (Irene Gil‐ Saura, et.al, 2009) Salary and Remuneration Packages Position Heads Salary Bonus Superannuation (9%) Total National sales Manager 1 $200,000 $50,000 $18,000 $268,000 Regional sales Manager 6 $170,000 $40,000 $15,300 $1,351,800 Wholesale Reps 9 $100,000 $15,000 $9,000 $1,116,000 Retail Reps 45 $70,000 $10,000 $6,300 $3,883,500 Total $6,619,300 Surplus Budget (from $7,500,000) $880,700 Employee Expenses Sales Rep Subsidisation Expenses Heads Time period Cost per period Total expenses Travel Expenses 58 12 $300 $208,800 Phone Bill/PDF 58 12 $60 $41,760 Total $250,560 Stelstra will subsidise travel expenses including fuel and public transport for sales reps as those roles require a high degree of movement within a geographical territory. This prevents any likelihood of cutting corners or a lack of enthusiasm as moving between sales stores is a free expense for the rep. Allocates Expenses for Online Sales and Telemarketing Expense Heads Time Period Cost Per Period Total Expense Wireless Internet 20 12 $50 $12,000 Bluetooth Headset 20 1 $50 $1,000 Computer Software 20 1 $300 $8,000 Telephone 20 12 $30 $7,200 Total $23,400 Telstra Company will supply online sales reps and telemarketers with reliable, high quality communications and internet technologies. This allows members of staff to reach new markets and serve current ones in a time-efficient and productive manner. Organisational Expenses Two-Day Annual Conference Expenses Expenses Heads Costs Total Flights (return) 61 $700 $42,700 Accommodation (2 nights) 61 $1000 $61,000 Function Room $2,000 $2,000 Food and Drinks 61 $1,200 $73,200 Entertainment 61 $450 $27,450 Total $206,350 Stelstra company profit graph as shown below have progressed well but for improvement Stelstra will perform an annual conference for two days at the Serena in Sydney where the members of the staff will be present. The management and the staff will present a schedule as follows: Day 1: Speech introduction from the company’s Sales Director. The first meeting discussing last year’s sales goals. To report the results of sales to every district. --- Refreshments --- Update and inform the staff about new consumer needs and wants, and competitors adjustment moves and the way to counter this moves. Discuss and come up with better wats of enhancing the performance of the sales. ---Break--- Day 2: Introduce and coordinate an exercise that will enhance team interaction and cooperation. ---Refreshments--- Concluding statements from National Sales Director. Total Budget Expenditure Expense Total cost Salaries/Remunerations 6,595,142 Sales Rep Subsidisations 250,560 Online Sales and Telemarketing Expenses 23,400 Two-Day Annual Conference 268,000 Total Expense 7,295,102 Surplus Budget 362,898 Conclusion. I have learnt on how to manage the sales team finances with an approximate budget of $7.5 million. Therefore, through the report, I have learnt the sales management approach that involves a dynamic nature of managing a company and directing the employees towards achieving the organisation goals. Also, I have been able to learn where to and how to allocate sales capital to different organisational sectors and how to schedule employees to work at a fair and motivated environment. References About.Australia.2015.Demographics.Availableat:http://www.aboutaustralia.com/facts/australiademographics/ Dalrymple, D. J., Cron, W. L., & DeCarlo, T. E. (2004). Sales management. Wiley. Eric Feigenbaum 2015, The Sales Force Structure Retrieved 9/9/2015 from Chron: Industry Super Fund (2015) Super Guarantee Retrieved 9/9/15 Irene Gil‐ Saura, Marta Frasquet‐ Deltoro, Amparo Cervera‐ Taulet, (2009) ‘The value of B2B relationships’ Industrial Management & Data Systems, Vol. 109 Iss: 5, pp.593 – 609 Jones, E., Brown, S. P., Zoltners, A. A., & Weitz, B. A. (2005). The changing environment of selling and sales management. Journal of Personal Selling & Sales Management, 25(2), 105-111. KJ Henderson 2015, Duties and Responsibilities of An Account Manager Retrieved 9/9/Chron: < http://smallbusiness.chron.com/duties-responsibilities-account-manager-875.html> Outsource Workers. 2015. Why You Should Outsource Cold Calling Services. Available at:http://outsourceworkers.com.au/why-you-should-outsource-cold-calling-services/ Pay Scale 2015d, National Sales Director Salary (Australia) Retrieved 9/9/15 from Pay Read More
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