An Assignment on Sales and Operational Planning

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Introduction

Sales & Operations Planning is the methodology by which it unites all the arrangements for the business (Customers, Marketing, Manufacturing, Financing, Sourcing, Sales and Development,) into one incorporated set of strategic arrangements. Murray (2014) mentioned that sales and operations planning acts as a decision-making a process that integrates strategically plan which covers in every business area according to the view of the organization business plan. The man objectives of sales and operations planning are to reach organization game plan that assists manage and important resources in meeting the needs of potential customer at minimum cost. A business starts for generating profit and growth of the operation of the business. The success of a business depends on suitable sales and operations planning. Sales and operation strategies should be determined considering the nature of the business, its customer and rivals. The organization should concern about the changing nature of the markets and regularly review the position of the business in the present market. Today sales and operations strategy is more different than traditional approaches. Many new businesses are growing faster than its competitors by adopting creative and unique sales and operational strategies. This report will describe the process of personal selling that supports the promotion mix. In addition, buyer behavior and decision making process in different situations will present in this report. Furthermore, this report will describe various role and objective of sales management. Moreover, a sales plan will demonstrate and opportunities in participating trade fair also present in this report.

Task 1: Understanding the role personal selling within the marketing strategy

Various selling techniques approaches are used by organizations but the personal selling approach is considered at the first priority. In this topic, it will discuss how personal selling supports promotion mix, buyer purchase behavior in the different situation and analyze the roles of sales teams.

1.1.         Personal selling supports the promotion mix

Personal selling is a product promotional process where salesperson applies his/her techniques and skills in various situations to pursue customers for purchasing desired product and services (Codita, 2011). Personal selling is an important tool that helps to stimulate the sales of organizations products or services. Coordination of marketing activities such as advertisement, sales promotion, publicity, personal selling, and direct marketing to support marketing goals are called promotion mix (Blunt, 2015).

Promotion mix emphasizes to inform, remind and motivate customers about the product and services of the organization. Russell (2010) explained that promotion mix is designed based on marketing plan of the organization, it also integrates the promotional activities internally, and the most important issue of promotional mix is to monitor the achievements of the promotional plan.

Personal selling supports promotion mix in a number of ways. Personal selling strategy assists the purpose of the promotion mix that is selected by the organization. Personal selling is much viable in making the familiarity with the item towards a buy. Personal selling empowers to clarify all the perspectives in regards to the item to the clients furthermore empowers the organization to assemble market data, inputs, etc. Personal selling plays several roles that assist promotion mix. Personal selling provides various compensations. 

Personal selling relates to individual communication and it is flexible in operation. Through personal selling the opinion of customers can understand by the sales person and according to the situation the sales person can use his/her skills to pursue the customer for buying the products or services that cannot be possible through e-mail or newsletter. Through personal selling organization can gather feedback from customers and various suggestions can receive that helps in marketing plan. Without personal selling the promotion mix of marketing cannot be completed. Through personal selling customers are more educates than any other promotion tools. For example; when the sales team of Apple mobile phone go to customers for selling product, the customer’s can directly ask sales representative about the price of other products of Apple or ask information about new arrival products. So that, personal selling plays an important role in promotion mix than any other marketing tools. As a result, every organization keeps many salespersons to complete promotion mix.

1.2.         Compare buyer behavior and the decision making process in different situations

The consumer is the heart of an organization and every organization develops its products and services to sale to the customers. And, through selling the products and services the organization wants to meet customer satisfaction and reach its desired profit level. According to Grimsley (2013) consumers buying behavior refers the aggregate of a consumer’s attitude, intentions, choices and decisions with respect to consumer’s behavior during purchase any service or product from the marketplace. So that it is very important to judge the consumer buying behavior under various situations by the organization. It is a decision making process of consumer for his/her desired products or services.

There are several types consumer buying behavior described by Roach (2014), routine response behavior refers frequent purchase of product or service by consumers, limited decision making behavior refers occasional purchase of product after gather information about unfamiliar brand in a popular brand, extensive decision making behavior takes place in case of expensive unfamiliar, infrequent, high risk bought product, impulse buying behavior occurs unconscious planning whether strong and continuous urge to buy any product or service immediately.

To compare buyer behavior in different situation here uses two mobile phone companies Apple and Samsung. Consumer buying behaviors are influenced by various factors for instance; personal factor, psychological factor, social factor. Personal factors include age gender, race, income etc. The price of Apple mobile phone is higher than Samsung mobile phone. As a result, high-income level consumers are the major target customer to Apple. On the other hand, Samsung mobile consists different price level for different income level customers. Situational factor also influences in purchasing Apple and Samsung phone. Samsung is friendly user mobile phone used android operation system where Apple is not friendly user operation system. Some features such as Bluetooth is working only with another apple mobile and another brand is not allowed for using this feature. Whereas, Samsung features can woks in any brand those are using android operating system.

Psychological factors such as perception, motives, attitude also influences in buying behavior of consumer. Many people buy Apple mobile phone because of the brand image of the company. Apple creates a strong perception about their product to customer mind so they are interested in buying Apple mobile only. People buy Samsung mobile phone because they think it is easy to use mobile phone application and anywhere this phone can use and no country lock can create problem to use this phone. Consumers of Apple user think this phone give him/her extra attraction towards friends and family. Social factors such as social class, culture also influences in purchase Apple and Samsung phone. People at high rank generally use Apple whereas people at all level use Samsung. Apple phone users are culturally motivated rather than Samsung phone users. These various factors influence in buying behavior of consumers for a product or service.

1.3.       Analyzing the role of sales teams within marketing strategy

Building an effective sales team is an important marketing strategy for any organization. The success of marketing plan closely depends on effective utilization of sales teams. Kitchen (1999) said that marketing strategy is the long term planning of an organisation to setup strong position in the market. The effective sales team takes place when right person is selected for right role in marketing plan strategy Sales team plays a vital role at various level of marketing planning.

Sales teams are fundamental element for an organizational success because they perform the duty of personal selling. Sales teams play some key responsibilities in marketing strategy. The role of sales teams should be designed according to the marketing strategy of the company. Apple should design the roles that cover the strength of its products and given responsibilities for reaching the sales targets through effective sales performance. For example; if Samsung launches a new mobile phone and wants that it will attract the market and can compete with Apple, then the sales teams require ensuring that they will use maximum volume strategy-selling volume.

Sales teams identify the target customers, their choices, perceptions, motives for purchase a products or services and designed its sales plan that will compete with rival organizations. Sales teams play business to customer’s role and the performance of the sales teams directly affects in profits and revenue of the company. Sales teams contribute to the sales achievement of the company directly. Sales teams present the various features of Apple mobile phone and describe why Apple is better than another brand.

Sales teams can provide additional information about the product and service according to the situation which influences customers and changes their mind to purchase Apple mobile phone though price is comparatively high than another brand. Schnnars (1998) sorted that in good marketing strategy is gather feedback directly from customers by sales team and defense quickly in case of negative feedback. So, it is very important for every organization build their sales teams with polite, smart salesperson otherwise the organization may not survive in high competitive marketplace.

See here for task 3 and 4


References

Schnnars, S. (1998) ‘Marketing Strategy’. (2nd Edition). New York: Simon and Schuster.

Roach, K. (2014) Buying Behavior and Marketing: Types of Consumer Buying Decisions. [Online]. Available at: http://study.com/academy/lesson/buying-behavior-and-marketing-types-of-consumer-buying-decisions.html [Accessed 31 May, 2015]

Kitchen, P. J. (1999) ‘Marketing Communications’. (1^st edition). London: Cengage Learning EMEA.

Grimsley, S. (2013) What Is Consumer Buying Behavior?- Definition, Types & Quiz. [Online]. Available at: http://study.com/academy/lesson/what-is-consumer-buying-behavior-definition-types-quiz.html [Accessed 21 March, 2015]. 

Codita, R. (2011) ‘Contingency Factors of Marketing-Mix Standardization’. (1^st Edition) Heidelberg: Springer Science & Business Media.

Blunt, L. (2015) What Is the Difference Between a Marketing Mix & a Promotional Mix. [Online]. Available at: http://smallbusiness.chron.com/difference-between-marketing-mix-promotional-mix-24142.html [Accessed 21 March, 2015].

Murray, M. (2014) Sales and Operations Planning. [Online]. Available at: http://logistics.about.com/od/tacticalsupplychain/a/sandop.htm [Accessed 21 March, 2015].

Russell, E. (2010) ‘The Fundamentals of Marketing’. London: AVA Publishing.