Sales Management 230

Sales Management 230

FOR
UNIT CONTROLLER: LOCAL LECTURER: DR. BRIAN HANDLEY DR. ALLAN PHANG

BY

STUDENT NAME:Arya Hendro Yudo STUDENT NUMBER:14937752 EMAIL:c8654b@yahoo.com DATE: 10TH FEB 2011

Sales Management 230

Sales-management 230 Semester 3A 2010 ASSIGNMENT COVER SHEET

Name:

____Arya Hendro Yudo_________________________________ ___14937752___________________________ Dr. Allan Phang ___Thursday 2pm 5pm_________________________ _______21 February 2011_______________________

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Sales Management 230

SALES-MANAGEMENT 230
Individual Assignment Assessment
CONTENT Below Acceptable 1 Excellent

1.

Demonstrates an ability to research and discuss the theory associated with the topic.

10

2.

Introduces appropriate concepts related to the topic.

10

3.

Uses good examples to illustrate key points.

10

4.

Relevance of discussion (answers the question)

10

5.

Demonstrated a clear understanding of and insight about the topic.

10

CLARITY

6.

Includes a concise introduction that emphasizes key points made.

10

7.

Presentation of assignment clear and neat (including structure of writing)

10

8.

Includes a concise conclusion that emphasizes key points made.

10

9.

Chicago referencing style used

10

10. Use of in text references

11. Three peer reviewed journal references

1 Mark

5 /100

1. _________________________________________________________________________ 2. _________________________________________________________________________ 3. _________________________________________________________________________

Sales Management 230

In the world today everything is becoming more and more expensive by the day, inflation is the cause of this. Even if you have a job sometimes the paycheck you are getting are not going to be enough to cover your day to day life. If it did, then you will be worrying about the future. Will it be enough to sustain your life for the next the next decade or so. All this questions are being asked by workers around the world.

This is an opportunity for any firm in the world to encourage their sales person even more and to maximize their efficiency and potential. There are lots of ways for firms to encourage their sales person. There are pros and cons of different method. It is all up to the culture and the mentality of each firm. For example some firm prefer monetary incentives instead of promotion because it is a family run business. They do not want the management team to be replaced by people outside of the family. The next section of the report will talk about different kind of incentives plan. What are their pros and cons and which plan is the best for different kind of firms.

Incentive is just another way of not just encouraging the current salesperson but also to retain them in the company for an x number of years. Every firm wants to retain their best sales person no matter what the circumstances is.

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A Monetary incentive is the most basic way to encourage a sales person. They are the easiest and the most overused incentives. Almost every firm in the world has a monetary incentive for their sales person. There are pros and cons from this method, the pros are it is easy, simple and quick for the management team to process and to implement.

Despite all of the advantages of using Monetary incentives there are some drawbacks to it. First monetary incentive can be used for corruption money. For example one of the management members took some money from the firms profit and uses half of it for bonuses and monetary incentives. But in fact the person might only use half of it and he or she keep the other half. Monetary incentives can be abused by one of the management members as a tool to corrupt the firms profit for their own gain. In some countries such as Singapore Monetary incentive are avoided since it can be suspected as a corruption and the penalty for corruption is severe.

Another drawback of monetary incentive is it only works on the initial stages of the sales person career. The longer they stay in the industry their aspiration and wants will change. Monetary incentive will eventually be changed to satisfy the sales person.

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There are other ways beside monetary incentive, things such as promotion or maybe free education. These things are actually more valuable to the growing sales person than just monetary incentive. The next section will talk about the other ways for

encouraging sales person and what are their advantages and disadvantages.

Addressing Their Needs The first step is to address the needs of the sales person. That is the first step for the management team to take. Different sales person have different needs. Therefore different kind of incentives will work differently for them. Another thing that should influence the sales person mentality and response is their culture. Therefore the management should do a little research about the culture or the trend of the community before implementing any incentive plan. This is very important because the firm wants to efficiently spend their resources. What if the incentive plan does not work? Then the resources that have been spent to implement it will be wasted that is why it is crucial to get it right the first time. In this report Singapore will be used as the guideline and examples therefore all of the analysis are based on Singapore context including the Geert Hofstede Cultural analysis.

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Promotion Promotion is another kind of incentive that older sales person always looking for. Promotion is very important to them because they want a bigger pay check. Older sales person usually have more experience and they have a family. Therefore their current pay check maybe is not enough to sustain his or her life with their family. There are advantages to this type of incentive; first of all it motivates the sales person to work harder. Secondly it helps the management team to spot any potential on the sales person. He or she will be a great asset to the firm if they have a great potential. Education and Training Education is very important to a growing sales person. Salesperson looks at Education and training as a tool to increase their earning and chances to get to the big time. But from the firms point of view education and training should be like an investment. Treat the incentives like a great investment, and the sales person potential is the return you will get.

Leadership

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Monetary is just one aspect that can encourage sales person. But as a human being they have other wants and needs to live. Monetary incentive might be enough for them in the beginning but as time goes things starting to change. They will have families and more mouth to feed. Therefore Monetary incentive would not be enough anymore. That is why monetary incentive will no longer be enough.

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IPC (2006) Benefits of incentive. http://www.incentivecentral.org/salespeople/salespeople.1863.html Articlesbase. (Accessed: 7 February 2011)

Beginnersguide.com. (2010) Are there potential disadvantages to SFA? http://www.beginnersguide.com/management/sales-force-automation/are-there-potential-d isadvantages-to-sales-force-automation.php. Beginnersguide. (Accessed: 7 February 2011)

Dutta, K. (2006) Top Ten Benefits of SFA (SFA). http://ezinearticles.com/?Top-Ten-Benefits-of-Sales-Force-Automation-(SFA)&i d=339798. Ezinearticles. (Accessed: 7 February 2011)
Jobber. D, Lancaster.G. (2009) Selling and Sales Management 8th Edition. Prentice Hall. Chapter 4: Sales Settings.115 (Accessed: 7 February 2011)

Salesforce.com. (2008) Salesforce SFA . http://www.salesforce.com/assets/pdf/datasheets/sales-force-automation.pdf. Salesforce.com. (Accessed: 7 February 2011)

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Power Distance Index (PDI) that is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. This represents inequality (more versus less), but defined from below, not from above. It suggests that a society's level of inequality is endorsed by the followers as much as by the leaders. Power and inequality, of course, are extremely fundamental facts of any society and anybody with some international experience will be aware that 'all societies are unequal, but some are more unequal than others'. Individualism (IDV) on the one side versus its opposite, collectivism, that is the degree to which individuals are inte-grated into groups. On the individualist side we find societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family. On the collectivist side, we find societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty. The word 'collectivism' in this sense has no political meaning: it refers to the group, not to the state. Again, the issue addressed by this dimension is an extremely fundamental one, regarding all societies in the world. Masculinity (MAS) versus its opposite, femininity, refers to the distribution of roles between the genders which is another fundamental issue for any society to which a range of solutions are found. The IBM studies revealed that (a) women's values differ less among societies than men's values; (b) men's values from one country to another
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contain a dimension from very assertive and competitive and maximally different from women's values on the one side, to modest and caring and similar to women's values on the other. The assertive pole has been called 'masculine' and the modest, caring pole 'feminine'. The women in feminine countries have the same modest, caring values as the men; in the masculine countries they are somewhat assertive and competitive, but not as much as the men, so that these countries show a gap between men's values and women's values. Uncertainty Avoidance Index (UAI) deals with a society's tolerance for uncertainty and ambiguity; it ultimately refers to man's search for Truth. It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, different from usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures, and on the philosophical and religious level by a belief in absolute Truth; 'there can only be one Truth and we have it'. People in uncertainty avoiding countries are also more emotional, and motivated by inner nervous energy. The opposite type, uncertainty accepting cultures, are more tolerant of opinions different from what they are used to; they try to have as few rules as possible, and on the philosophical and religious level they are relativist and allow many currents to flow side by side. People within these cultures are more phlegmatic and contemplative, and not expected by their environment to express emotions. Long-Term Orientation (LTO) versus short-term orientation: this fifth dimension was found in a study among students in 23 countries around the world, using a questionnaire designed by Chinese scholars It can be said to deal with Virtue regardless of Truth. Values associated with Long Term Orientation are thrift and perseverance; values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting one's 'face'. Both the positively and the negatively rated values of this dimension are found in the teachings of Confucius, the most influential Chinese philosopher who lived around 500 B.C.; however, the dimension also applies to countries without a Confucian heritage.

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