SALES MANAGEMENT & THE DEGREE OF DEVOTION OF THE BANGLADESHI SALES PERSONNELS INTO THEIR CAREER
AUTHOR:MD. JOYNAL ABDIN (BBA, GUB) (MBA, SEU) CELL: +88 – 01813 – 318620 E-mail:
[email protected]
Sales management is a continuous process through which such an environment being created where individual or groups work together to achieve organization’s sales target. Today we are living in the age of free trade around the globe. Global marketing concept is changing rapidly; competition is too strong in any position of this age. Each company being success when their sales target being fulfill at the same time poor sales performance diverts to the back lot, extra stock in stock room mean extra preservation cost. Poor sales performance resultant on operation hampering. That means selling is the most essential job in any business firm. It may be selling goods or services. But it is a great misfortune that, in our country sales people are not enjoying adequate salary and other benefits. They are depriving from each sectors, they are not enjoying social recognition, status as like other profession do. It resultant dissatisfaction of the sales people and caused production hampering or hues back lots. In this assignment I define sales, management then Sales Management from different aspects. I also conduct a survey that, whether our sales people is trying to have a distinction career in sales and marketing? Or not. Whether they are happy in their position or not? A field survey gives us a miserable scene of the sales people’s satisfaction on their job in our country. It is being elaborately described in this assignment.
-1Electronic copy available at: http://ssrn.com/abstract=1159377
OBJECTIVE OF THE STUDY:
The objectives of this study can be shown in the following figure: Objective of the study
Defining Sales
Finally defining Sales Management
Defining Management
Conducting a survey on the sales people of Bangladesh according to my topic.
Figure: Objective of the study METHODOLOGY: In this paper three methods of research have been used. These methods are – 01. Literature Review for secondary data. 02. Survey for primary data. 03. Finally recommendations. PERIOD OF THE STUDY: From 1st June to 30th July , 2006.
Use of technology: Technologies being used – a. Internet searching to have secondary data about Unilever. b. SPSS to process survey data into figure & various statistical tools. c. MS word to process words as well as prepare the paper finally.
-2Electronic copy available at: http://ssrn.com/abstract=1159377
BENEFIT FROM THIS STUDY: This paper may provide – I. Recent statistics about the sales people’s overview. II. Definition of Marketing. III. Knowledge of management. IV. Theory of Sales Management. V. An overview of the sales people’s present condition.
LIMITATION OF THE STUDY: i) Limited time result on short size of discussion. ii) Some unconscious biased information may be there in the survey. INTRODUCTION The term “Sales Management” includes two different words these are Sales / Selling and Management. These two terms are established theories in the field of business. So, before defining Sales Management we should have a slice what is Sales & what Management is? Sales: In a word the term sales means exchange, selling is the exchange of goods for mutual interest. Now we can see how exchange arrived between two parties. Two party exchange maps have given below that showing want lists of both parties: First party (Buyer) wants: I. II. III. IV. V.
High quality (durable equipment). Fair price for the value. On – time delivery. Good financing terms. Good parts & services.
Caterpillar (Marketer)
Construction Company (Prospect)
Second party (seller) wants: i. ii. iii.
Good price for equipment. On – time payment. Good word of mouth. Figure:01. The two party exchange maps. -3-
Sources: Marketing management - Philip Kotler – 7th edition /1993 – page 08.
Selling is mainly two types. These are – 01. Whole Selling: Whole selling is all activities involved in selling goods and services to those buying for resale or business use. There are many types of whole selling. These are as follows: A. Merchant wholesaling: i. Full-service wholesaling. ii. Wholesale merchants. iii. Industrial distributors. iv. Limited-service wholesalers. v. Cash and carry wholesalers. vi. Truck wholesalers. vii. Drop shippers. viii. Rack jobbers. ix. Producer’s cooperatives. x. Mail-order wholesalers. B. Brokers & Agents: i) Brokers. ii) Agents. iii) Manufacturer Agents. iv) Selling Agents v) Purchasing agents. vi) Commission merchants.
02. Retailing: Retailing is all activities involved in selling goods & services directly to final consumers for their personal non-business use. Retailing is many types, such as – a. Special Store. b. Department store. c. Supermarkets. d. Convenience store. e. Discount stores. -4-
f. Off-price retailers. g. Superstores.
Management: The term “Management” Consist of two separate word these are “Manage” and “Men” + “t”. Here, manage means compete the task; men consist of human resources and ‘t’ for tactfully. So, achieve a selected goal tactfully managing the human resources of the organization. In a sentence Management is the process of managing an organization tactfully. But it is also define in various ways by various prominent management specialists. Such as, i) According to R.C. Davis – “Management is the function of executive leadership anywhere”. ii) Famous Management writer Heinz Weihrich & Harold Koontz define management as “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims”…………………….Management (A global perspective), Heinz Weihrich & Harold Koontz, 10th Edition – 04 – 05, P – 04. These basic definitions need to be expanded: 01. As managers, people carryout the managerial functions of planning, organizing, staffing, leading and controlling. 02.
Management applies to any kinds of organization.
03.
It applies to managers’ at all organizational level.
04.
The aim of all managers is the same: to create a surplus.
05.
Managing is concerned with productivity; this implies effectiveness and
efficiency. iii) “Management is simply the process of decision-making and control over the action of human beings for the express purpose for attaining the goals”. ………………………….. Daniel J. Clough.
Sales Management: Sales management is the process of creating and maintaining such an environment in which individual or groups working together to achieved organization’s sales target. In other form we can say that, sales management is the process through which several selected courses of actions will be executed to rich the organization’s sales target. Here sales manager can take several types of policies to increase sales like market promotions, direct selling, mailing the potential customers, signing corporate contract to have large amount of sales at a time to a group of people or an institution.
-5-
GRAPHICAL REPRESENTATION:
01. Types of organization: In the following figure we see that, in the sample of these survey five types of business organizations Type_of_org anization includes. These are 35% Electronic clothing’s, 35% gift items; rest s of the 30% includes Gift Item electronics, lather items, & Cloth Store others respectively. So, large Lather varieties of business Item organizations are there in the Others sample. Large or diversification of samples diverts to the more accurate information from the survey. 50
Percent
02. Qualification of the Respondent: Maximum about 45% sales persons of our findings are Higher Secondary pass, 22% SSC pass rest 33% sales executives are Degree, Hon’s & Masters pass respectively. From this study we can have an assumption that most of the sales persons of our country are HSC pass. Although some Degree, Hon’s & Masters pass executives are there in this field.
40 30 20 10 0 SSC
Degree HSC
Masters Hon's
Qualification_of_respond...
Count
03. Salary range of the respondents: Majority potion of the sample get from 5000 to 8000 Taka salary per months. 30 Some of them are getting below 25 5000 Taka. Obviously 8500 – 12000 20 and 12500 – 15000 taka per months salary range are also in this 15 profession. From this potion we can 10 get this assumption that majority 5 sales people draw a 5000 – 8000 0 taka per month salary. Below 5000
5000 8000
8500 12000
Salary_Rang
-6-
12500 15000
Count
04. Are you happy in this job: About 80% sales people are not satisfy in their position. A little portion thinks that 30 average going on. Those says that they are fully happy in their 20 position maximum of them are owners of that 10 organization otherwise high executives like 0 Manager Sales & Fully Average Not at all Marketing, General Are_you_happy_in_this_job Manager Sales & Marketing.
Count
Percent
05. Would you think that you should have a higher salary: Almost 85% sales people thinks that they are not 50 getting adequate salary as they 100% 40 should be paid up. They think that, 80% they should pay a higher range of 30 salary. Rest of them those does not 60% respond are the owners of the 20 40 40% organization or high executives like 10 Manager Sales & Marketing, 20% General Manager Sales & 5 0 0% Marketing. Yes No comments Would_you_like_to_ha ve_a_higher_salary
06. Within how many days would you like to change this profession: Almost 75% sales Persons think that they will change this profession at the moment whenever they will get an alternative chance. somebody thinks that this profession can be continue up to next three months. Higher executives thinks that they will change the profession but not just now. They can change it 30 later after a certain period of time.
How_far_do_yo u_like_to_chan ge_this_profes sion At the moment Within Next three Months Later
07. Is sales person a prestigious job: Almost 70% sales people do not think that, it is a prestigious job? Owners do not make comments on this topic. Rest of them higher executives in this profession think that, yes it is a prestigious job. -7-
Count
25 20 15 10 5 0 Yes
No
No comments
Is_it_a_prestigious_job
08. Correlation between salary range & satisfaction to the profession: In the following table we see that, there is a strong correlation Correlations Are_you_h appy_in_thi s_job
Salary Rang Salary Rang
Are_you_happ y_in_this_job
Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N
1
.018
. 45
.905 45
.018
1
.905 45
. 45
Between the range of higher salary and satisfaction in the job. Degree of correlation is up to +1 so the correlation is very strong. From this table we an assume that, the higher the salary the higher the satisfaction. Of course some other factors also contribute here.
09. Correlation between qualification & salary range: In the following table we see that, Correlations Qualificatio n_of_respo ndent
Salary Rang
Qualification_of_re Pearson 1 .687(**) spondent Correlation Sig. (2-tailed) . .000 N 45 45 Salary_Rang Pearson .687(**) 1 Correlation Sig. (2-tailed) .000 . N 45 45 ** Correlation is significant at the 0.01 level (2-tailed). There is a strong correlation between the qualification of the sales person & their salaries. The degree of correlation is also up to +1 i.e. a strong correlation. It means the higher the qualification the higher the salary range. 10. Correlation between salary range & respondents prestige feeling: In the following table we see that,
-8-
Correlations
Salary_Ra ng
Is_it_a_pre stigious_jo b
Salary_Rang
Pearson 1 -.194 Correlation Sig. (2-tailed) . .201 N 45 45 Is_it_a_prestigiou Pearson -.194 1 s_job Correlation Sig. (2-tailed) .201 . N 45 45 There is a strong correlation between the salary range of the sales person & their prestige feeling on the profession. The degree of correlation is also up to +1 i.e. a strong correlation. It means the higher the salary the higher the prestige felling on the profession.
COMMENTS To improve sales as well as our overall business sector specially manufacturing sector entrepreneurs should be more conscious about the sales persons and their skills, need, wants & demand. Without fulfilling their needs optimum performance can not be expected from them. Without competitive performance of the employees not organization can compete with this global challenging environment. If someone can not be capable to compete in global challenging environment his market existence is impossible. So to exist in market and defeat competitors entrepreneurs should be aware to offer prestigious sales and marketing career to their executives.
-9-
SWOT ANALYSIS OF THE PAPER: Strength of this paper: 01. This paper contains a survey to have the real picture. 02. Both primary & secondary data have been used to prepare it. 03. It contains opinion of the different classes of sales executives i.e. lower, middle & higher class.
Weakness of this paper: 01. Someone may provide false information from the respondents. 02. Communication gape may be there.
Opportunities of this paper: i) Proper Guidelines from skilled instructor. ii) Cooperation from the respondents. iii) Availability of secondary data in the reference books. Threats of this paper: i) Secondary data are from two or three years back dated books. ii) Interpretation may be sometime inconsistence.
- 10 -
APPENDIX: a. Copy of the questionnaire being used in the survey: Questionnaire I am in a BBA program at Green University of Bangladesh, 31 Tejkuni Para, Farmgate, Dhaka. I am conducting a survey to analyze “Whether our sales people are really devoted to build a sales career” as a partial requirement of fulfillment of the course “Sales Management” (MKT – 128). I assured that all the information provided by you is strictly confidential. Your Kind cooperation would be highly appreciated. Supervisor’s Approval: This is certifying that, Md. Joynal Abdin, ID NO – 0302023 is a regular student of B.B.A at Green University of Bangladesh. He is one of my advisee. He is going to conducting a survey to analyze “Whether our sales people are really devoted to build a sales career” as a partial requirement of fulfillment of the course “Sales Management” (MKT – 128). This course is taught by me. I assured that all the information provided by you is strictly confidential. Your Kind cooperation would be highly appreciated. ……………………………………………… A. K. M. Abduj Jaher Signature ……………………………………. Assistant Professor Department of Business Administration Green University of Bangladesh 01. Name of the Respondent & Contract Number …………………………………………………………………………………………………………… ………… 02. Types of the store? a. Electronics. b. Gift item.
c. Cloth Store.
d. Lather items.
03. Educational Qualification of the respondent? a. S.S.C b. H.S.C c. Degree d. Hon’s. 04. Monthly Salary Rang? a. Below 5000 b. 5000 – 8000 e. 15500 or Above
c. 8500 – 12000
05. Are you happy in this position? a. Fully b. Average c. Not at all
E. Others…………
e. Masters
d. 12500 – 15000
d. Hunting chance
06. Do you think that you should be paid a higher range of salary? a. Yes b. No c. No comments 07. What is your expectation of the salary range? a. 5000 – 7000 b. 8000 – 10000 c. 12000 – 15000 e. 20000 – above. 08. Do you think that, this profession is a suitable one for you? a. Yes b. No c. No comments 09. Within how many Days would you like to change this profession? a. At the moment b. Within next three months c. Later 10. Do you think sales person is a prestigious job? a. Yes b. No c. No Comments
- 11 -
d. 16000 – 20000
b. Source of data: 1. Sales Management – by – Richard R. Still. 2. The Lecture sheets provided by our honorable course teacher Mr. Abduj Jaher (Assistant Professor, DBA, GUB). 3. Principles of Marketing, Philip Kotler and Gray Armstrong, Tenth Edition – 04, 4. M. Pride & C. Ferrell, Marketing (Concept & Strategies), The Millennium Edition, 5. William J. Stanton, Fundamentals of Marketing, 9th Edition –19 91. 6. Heinz Weihrich & Harold Koontz, Management (A global perspective), Heinz Weihrich & Harold Koontz, 10th Edition – 04 – 05. 7. Philip Kotler, Marketing Management, 7th Edition 1993.
- 12 -
