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Task 3: Understand the role and objectives of sales management
Sales management plays the vital roles in sales and operations to achieve the organizational goals. This part will cover sales strategies in line with corporate objectives, the importance of recruitment and selection, role of motivation, remuneration and training in sales management and use of the database for effective management.
3.1. The development process of sales strategies in line with corporate objectives
Every organization wants to develop unique sales strategy that defeats its rival organizations and capture the maximum market share. Amico (2014) stated that sales strategy is a plan that positions organization’s product or brand to achieve competitive advantages. So, developing a sale strategy is not easy for Apple because the company has a lot of competitor Samsung is one of the close competitors of Apple. To compete with Samsung mobile phone, Apple should analyze the core features of the markets which assist in developing sales strategy.
Successful sales strategies assist the sales force to concentrate on target consumers and communicate with customers in meaningful ways. At previous organization follows traditional selling approach. But, with the phases of time these approaches are changing radically. Today, the markets are too much competitive and every moment new rival entering in the markets with new sales strategies. So, Apple should develop its sales strategies considering various market forces. First of all, Apple should develop its sales objectives regarding its mobile phone. At previous, Apple introduces smart phone technology but when Samsung come with android operating system base smart phone the company directly challenge in the market share of Apple.
For developing sales strategies Apple should review markets factors such as customers demand, rivals positions, competitor’s strategies, customers purchase behavior, income level (Smith, 2015). To collect market information the company can use quantitative research approach where collecting information can easily analyze and qualitative approach where collecting information and analyzing is complex. There are various tools of gathering information that Apple can use such as focus groups, face-to-face surveys, internet surveys, telephone interviews. Analyzing and interpreting of collecting data will help in developing sales strategies of the company. Apple should analyze its internal capabilities such as production capacity, financial stability, sales force ability etc.
Through Key Performance Indicator the company can analyze its sales people performance. Apple should consider its sales forecasts planning and revenue earning. It is an important tool for any business at any size. Apple can set month by month sales forecasting plan. The organization can review its sales forecasts after every quarter. The most important issue is that the company should establish its sales strategies according to the corporate objectives that meet at all levels of sales planning.
3.2. The importance of recruitment and selection process
In sales and operations planning recruitment and selection is the primary task for every management of any company. Through recruitment and selection process organization creates its salespeople to achieve its sales target. Friend (2014) stated that recruitment is finding and hiring the best fitted applicants for a job outside or within an organization. According to Price (2011), selection process refers interviewing and evaluates applicants for right job and selecting best-fitted candidates for employment considering specific criteria.
Recruitment possesses several importances those are given below:
Ø Encourage and attract more candidates to apply in the organisation
Ø Develop a pool of talent candidates that facilitates best candidates for the organisation
Ø It is process where employees links with employers
Ø The cost of recruitment is low
Ø Recruitment process makes easier selection process.
When an organisation like Apple needs employees for sales department, the organisation goes for recruitment process. Recruitment includes job description, job specification where roles and responsibilities of candidates clearly state.
There are several methods of the selection process that Apple can apply to select its effective sales forces. Some methods of selection process are interviews, online tests, written and oral presentation about a selected topic, reference checking, group activity and online tests. Apple should design its assessment criteria and on the basis of this criterion the company should figure out points of each candidate and select the best-fitted candidate for specific job.
Among various selection methods it will favorable for Apple go for written and oral presentation, group activity and interviews methods. Through these three processes Apple can shire best sales people for its specific job. The main important factor of recruitment and selection is that organization can gather qualified candidates and among all candidates organization can select best out best people for the job.
3.3. The role of motivation, remuneration, and training in sales management
Motivation means influencing people to do any task. Motivation provides satisfaction to employees that move them to perform carefully and encourage them in their task (Storey, 1999). There has positive relationship among remuneration raining and motivation which drives in UK mobile sales teams. The evaluation can be shown by following table:
Remuneration
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Training
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Motivation
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Remuneration increases the enthusiasm of sales teams in their job.
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Training and development create the ability of sales force of UK mobile sales teams.
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Motivation increases the sales teams affectivity in given task.
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Bonus, commission, performance related pay are some forms of remuneration process.
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UK mobile companies invest huge amount of money in training and development program for building effective sales teams.
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Motivation is a driven force to achieve organizational goals.
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Remuneration increases job satisfaction of sales teams.
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Human resource manager directly monitors and evaluate the training and development program.
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Motivation removes the monotony in works.
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Remuneration depends on responsibilities, variety of work, sense of working as a team etc.
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Organization focuses on health and safety training of employees provides specific training for specific job, creates competencies among salespeople etc.
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Recognition, promotions, gifts, praise, status, salary increase etc. are some tools of motivating sales teams.
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A remuneration is a tool of motivational process.
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Training ma is done through on-the-job and off-the–job process.
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Motivation increase teams performance as well as individual performance.
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Training increases the confidence of sales teams.
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Motivation reduces employee turnover and increases company profits.
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3.4. Organizing sales activity and controlling sales output
According to Hutt and Speh (2012), sales management is coordinating organizational resources (planning, directing, staffing, training, and evaluating performance) to achieve the sales force goals in efficient ways. In sales management process the key roles are played by the sales manager. The major tasks of sales management are sales planning, staffing, controlling, training and development, evaluating performance with standard, evaluate efficiency, compensation. Sales management is important for a number of reasons.
Achieving corporate objectives, sales management helps to build sustainable working culture, boost up customer satisfaction, ensuring the sales force fulfill of their key performance indicator are major importance of sales management. Organization should have required resources to raise its output and distribution. That means increasing sales effort drives organizational profits. As a result, sales management is important for Apple Company for its mobile selling. Kane (2011) claimed that to organize sales management the sales manager of Apple should evaluate the size of its sales force. If the size is too bulky then the expense will increase. On the other hand, if the sales force is too small then sales target cannot be possible to achieve. So, evaluation of sales force size is necessary for sales management.
Organizing sales activities are another key focus of sales management for Apple. The company should establish achievable sales target for its sales force. If sales target is high then sales force cannot achieve which reduce motivation of sales force. In another case, if the sales target is low this means sales force ability cannot utilize properly. So, manager of Apple should find out the standard level of sales activities. Customer relationship is another important issue for sales management. Post purchase service is very important for Apple mobile because it creates strong relationship with customers and increases brand value of the company. The manager of Apple should monitor the sales budget does not exceed the profit margin. The manager should provide training for poor performer and motivate salespeople.
Sales-output means the achievements that sales department previously set up of organization objectives (Kilroy, 2013). For evaluating sale output, sales manager has sorted out various sales activities and should analyze the actual sales with target sales. The manager of Apple can increase its sales output through appraisal of performance, sales training, reorganizing sales budget, motivation.
3.5. The use of databases in an effective sales management
Rouse (2014) said that database is collecting, organizing and storing information for future use. The database provides many facilities such as common data for all users to share, central database system monitor the data from various store, flexibility of using data, and consistency in the organizations use of data etc.
Database plays many important roles in sales management. Database helps in reviewing sales information, customers opinion, remarks; central database system arrange all sales data in a single database; access databases of external organizations; database is used to evaluate market share or sales; it increase customer retention; it is less time consuming. The sales manager of Apple Company can monitor the total number of mobile sales. He/she also can understand the performance of various sales forces and identify those sales people consisting high and poor performance. Through database system the sales manager of Apple can identify the potential customers for Apple mobile and evaluate feedback from customers. Database system helps manager in reviewing sales strategies.
Task 4: Planning sales activity for a product
This part will discuss detail sales plan for a product, investigate opportunities for selling internationally and investigate opportunities for using exhibitions or trade fairs.
4.1. Developing a sales plan for Apple mobile
The sales plan is important for Apple mobile for many reasons. It helps business to manage its cash flow due to forecasting, it helps to set up targets for sales teams, ensures corporate objectives, it helps to attract prospective investors. The sales plan is containing the aims of sales process, providing incentives to responsible person in the sales process assess current sales volume for a product or service and evaluate the achievement of sales targets and objectives (Panda, 2009). Here, presented a sales plan of Apple iPhone mobile phone.
Apple Inc. is one of the largest organizations in the world. The founder of the company is Steve Jobs. The best attractive product of Apple Inc. is iPhone.
First of all the manager of the company should clearly describe its sales mission. The manager should establish sales targets and way to reach the targets clearly in its sales plan.
Then the manager should go for market survey and collect information about buyer’s ability to purchase the product, competitor’s strategies, target customers, demand of iPhone etc. Then the manager should analyze the gathered information and find out the competitors position in the market, customers choices, competitors strategy, income level of people and point out the target customers.
The manager should develop its sales strategy that includes pricing methods and advertising and promotion techniques.
The company can use premium pricing strategy where keeping the price of iPhone is higher than competitors. Lashinsky (2012) claimed that premium price is favorable for Apple because of its brand value and latest features. Apple manager can use this price strategy because the users of iPhone belong to high-income level. The brand value is high so that the manager can adopt premium pricing strategy for iPhone.
Apple manager can use various advertisement and promotion tools such as TV advertisement, sponsorship in different concert, online advertisement. For promotion strategy the company will be participating in exhibitions or trade fairs.
The most important task for Apple sales manager is developing strong sales forces. The manager should develop sales forces and train them that helps sales forces to achieve sales targets and desired profits from iPhone selling. Apple manager should provide after sales services and collect feedback from the customers that help to review sales plan.
4.2. Investigate opportunities for selling internationally
International selling is important for a business that wants to expand its business. Entering new market is challenging and prospect for any business. Lowe and Doole (2008) sorted out two types of overseas entry; direct exports when the parent organization performs itself by using other party or sales agent; indirect exporting is where the product of an organization is sold other country by other firms. Distributor channel is an important issue for international selling and it is not always easier to sell abroad if there has no cordial relation with distributor of that region.
To start operation in abroad the sales teams should remember some key issues. Sales teams should gather knowledge of the actual market place, language of the buyers; understand the pattern of the local customs and culture.
Apple iPhone has opportunities entering in UK markets. UK market is very challenging for any new entry organization.The UK has many popular mobile phone companies. So, entering this market is challenging for Apple iPhone. But, iPhone possesses some unique quality such as brand value and price. Apple brand is familiar all over the world and iPhone develops social status because of its unique features than another mobile phone. And, the price is comparatively high and target customers are rich people. So, investing in the UK for Apple iPhone will be profitable.
4.3. Investigate opportunities for using exhibitions or trade fairs
Exhibitions or trade fairs bring the opportunity for an organization introducing their products and services to people from this many new customers are generated. Organizations always search opportunities to participate in exhibitions or trade fairs and through participating they generate profits and collect many new purchase orders. Rai (2009) described that participating in exhibitions or trade fairs has many advantages. For example; it increases public relations, creates new network with various industry and clients, highest level of promotion can be achieved to wide audience, it helps to understand about competitor products, being able to judge the response of people to new product. The target customers of Apple iPhone basically belong to high-income level. So, the company can participate in an exhibition in UK, UAE, Singapore, Malaysia, Japan and other high-income level countries. Participating in trade fairs brings opportunities to present new features of iPhone that increase iPhone brand image.
References
Amico, S. (2014) Definition of Sales Strategy. [Online]. Available at: http://smallbusiness.chron.com/definition-sales-strategy-2213.html [Accessed 21 March, 2015].
Codita, R. (2011) ‘Contingency Factors of Marketing-Mix Standardization’. (1st Edition) Heidelberg: Springer Science & Business Media.
Friend, L. (2014) What is Recruitment, Selection & Induction?. [Online]. Available at: http://smallbusiness.chron.com/recruitment-selection-induction-1154.html [Accessed 20 March, 2015].
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].
Hutt, M. and Speh, T. (2012) ‘Business Marketing Management’. (11th edition). London: Cengage Learning
Kane, Y. (2011) Apple to Tighten Control on Content. [Online]. Available at http://www.wsj.com/articles/SB10001424052748704775604576120531458250932 [Accessed at 31 May, 2015]
Kilroy, J. (2013) Increase Inside Sales Output With Automation. [Online]. Available at: https://www.executiveboard.com/blogs/increase-inside-sales-output-with-automation/ [Accessed 21 March, 2015].
Lowe, R. and Doole, I. (2008) ‘International Marketing Strategy’. (5th Edition). Mason: Cengage Learning EMEA
Panda, T. K. (2009) ‘Marketing Management’. (2nd edition). New Delhi: Excel Books.
Price, A. (2011) ‘Human Resource Management’. (4th edition). Hampshire: Cengage Learning.
Rai, S. (2009) Importance of trade fairs. [Online]. Available at http://articles.economictimes.indiatimes.com/2009-05-22/news/27647741_1_exhibition-industry-trade-fairs-joint-ventures [Accessed 31 May, 2015]
Rouse, M. (2014) Database definition. [Online]. Available at: http://searchsqlserver.techtarget.com/definition/database [Accessed 20 March, 2015].
Russell, E. (2010) ‘The Fundamentals of Marketing’. London: AVA Publishing.
Smith, J. (2015) Apple Watch sales strategy: a focus on fashion and up sells. [Online]. Available at: http://www.idownloadblog.com/2015/03/24/apple-watch-sales-strategy-a-focus-on-fashion-and-upsells/ [Accessed 31 May, 2015]
Storey, J. (1999) ‘New Perspectives on Human Resource Management’. New York: Thomson Business Press.
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