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3 Evaluate the role of motivation, remuneration and training in sales management
Motivating employees can increase productivity and improve quality. Because when
employees are motivated, they will feel more comfortable, mentally motivated and work
harder. According to Anne M. Malcachy, "When employees are motivated, they will
believe that the manager considers them to be a complete person, not just an employee.
Satisfy employees just like customer satisfaction. "
In case of Sabeco, the manager understands the importance of motivation and does well.
Sabeco has relied on Maslow's hierarchy of needs for motivation and, in particular, on
level 1: Physiological and Level 4: Esteem. In order to satisfy and motivate the
employees, Sabeco focuses on the basic tasks such as creating a friendly working
environment, comfortable spaces, appropriate salary and bonus, etc.
For Sabeco, motivation is divided into two aspects: extrinsic and intrinsic.
+Intrinsic: Compliments is one of the things that motivates you. People always want to
receive compliments. So, for the managers of Sabeco's sales staff, after the staff
completed the task, give them the sincere compliment. This will help them to make more
effort, hard work and good work done in the future.
+Extrinsic: In addition to mental stimulation, motivation also arises from external
material. For any employee at work, they pay close attention to salaries and bonuses. So,
for Sabeco, their bonus policy is based on the employee's ability to work and what they
did for the company. Each person has different circumstances, so the company has many
incentive policies to satisfy employees, motivate them to work. There are employees who
are financially rewarded as cash, gifts, etc. There are employees who do not have
financial problems, but they want to be recognized for their ability and contribution to the
job. Therefore, for salespeople who achieve sales exceeding their sales targets, they get
the "Employee of the month" certificate and get the recognition of other employees and
superiors. In addition, these certificates will also help their future work.
For Sabeco, the promotion activities for employees are divided into tangible and
+Tangible: Cash rewards or trips, homes, and cars are great rewards. Therefore, those
who receive this award must of course have valuable contributions to the organization.
Most of these people are in direct management. However, the rewards of great value will
make the staff feel pressure and will work hard to be worthy of that reward.
+Intangible: The spaces and activities around the company will invisibly affect the
employees. Sabeco creates motivation for its employees by creating a friendly, clean and
safe working space. People will feel more comfortable and productive. In addition, the
rules and principles of working in the company are also part of that special staff. For
example, with open, creative leadership and management style, openness will make
employees feel less constrained and have more creative ideas. For Sabeco, training
courses are a great way to motivate employees. When employees are selected for training,
they will feel that they are more capacity to develop and that the company is paying
attention. Training is an opportunity for staff to improve themselves and develop skills.
Therefore, they will consider it a great encouragement
Basic contracted salary , bonus and commission are three factors which belong to
Remuneration. Remuneration is a way so as to pay and compensate for the staffs
+ Basic contracted salary : As you know, Sabeco is a famous group, so that Sabeco
increases the basic contracted salary which depends on the staffs’ ability . Additionally,
Sabeco uses the contracted salary to create motivation for the staffs who get productivity
and sale more products as well as attract more customers. On the contract, If the staffs of
Sabeco do not gain revenue which the company requires, they will not receive the enough
+ Bonus : As noted above, if al staffs work to gain the revenue, they will recieve the basic
contracted salary. However, in each business, there are a lot of staffs, so that between the
employees certainly happen the dissatisfaction and Sebeco is not also exception. For
example, with a sales person in Sebeco , he receive the average fixed salary 5 million
VND. Nevertheless, another important thing is that each company wil have the excellent
ways to attract more customers than others and they get the revenue for company more
than the expectation of company. In this situation, if the company treats them like others
who only follow enough revenue of the company’s requirement , it is not fair with them.
That leads to the employees feel dissatisfied. Maybe, they will leave the job and find a
job to deserve with their effort . Therefore, besides rewarding employees with excellent
performance in money, Sabeco also rewarded money by offering travel for the employees
+ Sabeco applies the policy to sales staff. If one month's total sales revenue is 20% then
the employee will receive the commission. This is a very useful way to motivate
employees and increase productivity.
Outstanding employees have been rewarded with money, however, Sabeco employees
still want to be recognized for their skillful sales by spiritual value. According to
trinet.com,2014 , there are 5 non-monetary benefits.
Therefore, Sebeco awares of the benefit of non-monetary, so this company can apply
some non-monetary to motivate for their employees .
+ Award ceremony for excellent staff: It is a very useful way to record the performance of
excellent employees during the month, in each quarter and a year. Excellent staff will be
named and stand in front of the whole staffs of Sebeco receive the excellent staff
certificate. It is considered to be a great encouragement for the staff to continue to work
harder. (Sabeco.com, 2017) Here is a sample of the certificate.
3. Training programs
Investment in extensive training programs is Sabeco's goal. If Sabeco sees the potential
for future growth of employees, they will be willing to provide and invest in training
programs to improve their skills. Employees who are recruited into Sabeco have to
undergo rigorous selection rounds, so most of the employees are highly skilled.
Therefore, Sabeco should open more extensive training courses to help employees
cultivate and improve knowledge and skills. When equipped with the knowledge and
skills, employees will easily face difficulties in the future.
For the sales staff, the rest time with them is really lacking. For example, in a month, they
have to spend time to meet customers, introduce products and run sales. This leaves them
no time for themselves to rest or have fun with their family. Therefore, for sales staff,
rewards for them are reasonable rest periods or short-term family trips. These things will
give them more motivation and work better.
In addition, Sabeco always focuses on organizing activities for the children of all
employees in the company. It is essential because if their children are treated well, they
will have more motivation in their work. Every year, Sabeco organizes moon festival for
children of all employees (Sabeco.com, 2017)
=> As a result, Sabeco carried out a survey for employees to listen the employees’
opinion, then Sabeco will choose the suitable reward for the employees
3.4 Explain how sales management organize sales activities and control sales output
1. Organization sales activities by structure
+Territorial organization structure: Geography-Based Sales
A geographically focused sales team is extremely common and powerful in specific
industries. The concept is that if salesmen specialize in a specific zone, they can scour it
completely and comprehend its workings. The sales approach to deal with a rural group
can be altogether different from an inward city zone or a country town.
Sales based on geographical allow sales staff a better understanding of the markets they
are managing and developing the appropriate approach to that area. Moreover, it can also
prevent cases sellers collide if the map and the territory of each person are clearly
defined. Some industries use this method successfully as direct sales of cosmetics,
telecommunications, print ads and HR.
+Product organization structure: Product-Based sales
Sometimes, specialized knowledge is the way to go. Having salespeople become experts
in a specific product or product line can make them stronger sellers. This is especially
true with products that are highly technical or which are sold to professionals.
For example, for the sale of medical equipment, it requires a salesperson to have a deep
understanding of their product. Because the doctor if there is demand for these products,
they can make the complex question of expertise, technology, and the functionality of the
product. So, ask the salesperson to understand how the product works and how to install
products as well as fixing some simple errors.
+Customer organization structure: Client-Based Approach
Arranging your sales efforts around your clients is another valid approach to sales force
design. In some industries, different types of clients have very different needs. For
example, in the field of health insurance, the sales process for a large company is much
different than a small business local, or sales to customer segments over 35 years old and
customer segments under 20 year old customer segment is two completely different on
both demand and psychological purchase. Salespeople achieve the best results when they
become experts in a specific customer, and this encourages them can easily develop sales
techniques appropriate to each specific target.
Another advantage to a client-based approach is that clients often feel like they have
more of a relationship with their sales representative and get the sense of greater
customer service since the sales effort is designed around them.
+Complexity organization structures: Mixes
Sometimes organization develop a hybrid of these approaches. For example, one sales
team might cover large business in a particular geographical region and other small
business in that same region. There can be many positive results from this form of
However, managers need to develop clear definitions of both the geography and the
+In case of Sabeco
According to the information which shared by Mr. Quang Vinh who is a salesman under
the Business department of commercial joint stock companies Tay Nguyen Saigon beer, I
realized that Sabeco used the organization sales activities by mix territorial organization
structure with customer organization structure. Then, I will show the example as evidence
Figure 4: The structure of level in sales of Tay Nguyen beer Company
Looking at the diagram above distribution of Saigon Tay Nguyen beer Company, we can
clearly see that the company sold products to the two units is the distribution channel
level 1 and supermarkets. There are 3 reasons to explain for this. First, these two units is
taken very large quantities. Secondly, the company only works with two units shall
ensure fast and accurate. Third, companies do not have enough time to work with all
units to sell products. Therefore, these two units are obliged to sell to other small points.
Therefore, the job of the sales here is to work with all points of sales level 2, level 3
(point of sales level 2 pickup with a larger number of point of sales level 3), pubs and
restaurants, small grocery store, etc. Salesperson’s Sabeco be split along clear area to be
avoided bump into each other, in the absence of clear area under their management, the
sales staff may be working with a point of sales. Sabeco sales staff, will provide an
intersection of the point of sales in areas under their charge. They will have to direct the
store in the list to gather information and carry goods introduced processes and product
Figure 5: The required zone for sales Sabeco product of Mr. Quang Vinh
Figure 6: The example about the form for sales processing report in every single day of
Mr. Quang Vinh
Besides, Sabeco salespeople just have to focus on customers such as enterprises, small
private businesses locally, and a number of restaurants, small local eateries. This
indicates, Sabeco clear distinction of both geography and scale, the sales staff will be
easier to apply sales techniques to a specific target. Because salespeople have to direct the
point of sale to obtain marketing information as well as shop owners, so this will easily
help customers more cozy.
Figure 6: Mr. Quang Vinh and his customer are signing the contract with purchase beer
2. Control sales output
Sales output: shows the performance of a sales person, to see how that person does the
sales job and if they can make profit for the company. To make it measureable, we make
sales budget to evaluate sales person’s performance. Sales budget is the company’s sales
expectations in a period. A sales budget is normally displayed in monthly or quarterly
format, shows the annual sales information. In case Sabeco, keg and can monthly are the
dominant unit in the sales budget.
Sales force performance relation between sales force performance & overall performance
of organizations impact of effective sales force performance on the bottom-line.
Performance can be considered & evaluated in terms of behavior & outcome based
components. Criteria for measurement should be derived from job description of the sales
Criteria for the evaluation of sales force performance:
It measures about personal competencies of salespeople included: planning skills, team
work, aptitude & attitude, product knowledge, etc. Measurability leads to ambiguity shift
from planning skills, knowledge of company policies, and time management to
communication skills, ethical behavior & team orientation.
In order to be a great sales people, the soft skills is vital factors. Therefore, some major
qualitative criterions like: Sales skills, Technical skills, Interpersonal skills, Territory
management, Personality traits, Adaptability… which are treated as standard of appraisal.
Mostly used and easier to standardize and implement. Quantitative measures can be
segregated into input and output measures. Input measures average number of sales calls
per day, ratio of sales cost to sales number of reports submitted by sales persons. Output
measures sales volume, sales orders number of new accounts, number of advertising
displays, gross profit obtained from new accounts.
+ Establishing of performance standards:
Models go about as a seat stamp and aides in assessing execution can be set up by a
business administrator independently or in interview with different salespeople. Number
of measures to be utilized is one of real choices and trouble associated with the weight to
be given to each factor. Large organizations will have basic arrangement of performance
standards connection between input and output measures to be remembered while setting
+In case of Sabeco:
Figure 7: The table performance output for employees in monthly
The photograph above is provided by Mr. Quang Vinh-employee company's sales of Tay
Nguyen Saigon beer. He had shared that, how to assess the capacity of employees at the
company are based on Tay Nguyen Saigon beer sales monthly. It means that Sabeco is
applying quantitative criteria for salespeople with the sales volume output measures the
sales volume, sales orders number of sales’ points where employees are responsible for
managing their area.
According to the figures Mr. Quang Vinh share, salesperson will get indicators on the sale
of products for the area of each employee by Sabeco monthly. If it does not sell enough
staff targets set out, they will not receive full pay, and will be deductible as a percentage
of the initial lack of indicators. For Saigon Tay Nguyen beer companies, the only goal in
a month for a salesperson is 2,420 kegs/cans of beer to the total output of all products
Sabeco (include Larger 450 bottles, Larger 355 bottles, Larger cans, Export 353 bottles,
cans Special 330, Special 330 bottles, 333 cans, 333 bottles).
3.5 Explain the use of databases in effective sales management
1. Knowledge management system
+Definition: According to Techopedia.com,2016 , “A knowledge management system
(KMS) is a system for applying and using knowledge management principles. These
include data-driven objectives around business productivity, a competitive business
model, business intelligence analysis and more.”
+Benefits: There are several benefits of the knowledge Management System (KMS).
Those benefits will be shown below:
Firstly, all workers in the business can access in order to system which relates to
management and business knowledge
Secondly, with KMS, it is necessary to develop new technologies and it needs to use in
Thirdly, based on KMS, the staffs could find data and information which they are find
Moreover, using KMS will limited the minimum IT costs and improve the
communication between the staffs.
2. Customer relationship management
+Definition: "CRM or Customer Relationship Management is a strategy for managing an
organization’s relationships and interactions with customers and potential customers. A
CRM system helps companies stay connected to customers, streamline processes, and
improve profitability." (Saleforces.com, 2018)
+Benefits: By collecting and analyzing data on customer information, making these data
easy to share and easy to access, CRM brings many benefits to businesses. Easier
customer information management, more interactive assessment, easier collaboration
groups, accurate sales forecasts, timely reporting, etc.
3. ERP BRAVO 7 (ERP-VN): Enterprise Resources Planning
ERP stands for "Enterprise Resources Planning" is a model application of information
technology in business activity management, data collection, storage, analysis and
interpretation. An ERP solution integration, including software and consulting activities
with multiple functions is used for: management plans, costs of production or delivery,
manage inventory and purchasing, marketing and sales, treasury management,
ERP software deployment, we get along at 3 products: one is "idea management", "two
software programs" and is "connected" media to build the system and process
management, operation of the system in an integrated computer network. With a unified
software system, multi-function links all activities of the business, from planning,
statistics, support to the audit analysis report output, and help for the operator or parts of
effective operation. ERP help management track smoothly, ensure timely response to
businesses before the changes of the external environment. In the world and both in
Vietnam we have a lot of big companies to successfully deploy ERP solution for the
active management of its business. Successful ERP implementations will save costs in
operating management, increase productivity, increase competitiveness and bring longterm benefits for the business (BRAVO, 2016).
4. In case of Sabeco:
Since 2013, the trust selected SABECO BRAVO partners provide software solutions to
manage the business. System management software business - solutions BRAVO 7 ERPVN is deployed at both the Corporation and the member units of SABECO nationwide
as: Brewery Center, Brewery Saigon - Cu Chi, company Limited Trading Services
alcohol - NGK Saigon JSC Binh Tay liquor, Beer JSC Saigon - Quang Ngai, JSC alcohol
Saigon - Dong Xuan ... The application software used in many parts departments such as
accounting, inventory, manufacturing, etc.
In units SABECO that BRAVO have already deployed the software, problems particular
management was resolved to meet the requirements of enterprises: Problem handling
bottles, shell boxes are stripped and distinction; Data in the unit easily track and create
reports and search information; delivery transactions is presented in detail, detail ... and
many other benefits that bring the software system for businesses. With the invaluable
support from BRAVO software solutions will contribute to increasing management
efficiency for the operations of SABECO, bringing businesses one day carried away on
the road to success (BRAVO, 2016).
4.2 Investigate opportunities for selling internationally
SWOT analysis of Sabeco in domestic market.
- SABECO as enterprises with large -Large amount of raw materials mainly