Qualitative method in B2B market research aims to roll uping and analysing informations for understanding deeply the purchasing behaviours and the grounds behind that behaviours of the nonsubjective purchasers. The qualitative method is normally used to reply the inquiries why and how, non merely the inquiries what, where, when. Therefore, samples size needed is little but concentrated. The big figure of samples is unneeded.
In B2B, there are 2 most frequently used attacks: in-depth interview and focal point group
– In-depth Interview: Personal interview is chiefly used by our salesforce to place client demand, where we can raise the complex inquiries, discuss the sensitive subjects and know the personal jobs for better attack of future gross revenues.
This tool is recommended when the sentiment and appraisal of the respondents are of import and decisive to the purchasing determination of the company.
Some comments in in-dept interview:
+ the inquiry should be prepared for some targeted job but ever be unfastened
+ all the words and sentiments of the interviewees should be noted down shortly every bit inside informations as possible.
+ to interview the respondents with different point of view/different attacks, even with opposit position.
– Focus group: for some lines of merchandise that might be used widely in short clip or the new merchandise want to perforate into the market we shall form the workshops with support of experts and applied scientists from Manufacturers. This is rather sensible because most of our cardinal clients concentrate in Quang Ninh provice, it is close and easy to go to the Halong City – the Centre of the coal part.
Sellecting sample and respondents:
+ Samples: Survey information was observed from little figure of sample, nevertheless, in the instance of the B2B market these limited figure of respondents can give the extremely representative consequences. We choose samples with proportion as follow:
+ For clients ‘ appraisal: we conduct interviews in 10 clients stand foring for 04 coal centres of the Northeast Coal part of Vietnam.
Mong Duong country: Mong Duong, Khe Cham
In Cam Pha Area: Cao Son, Thong Nhat, Duong Huy
Hon Gai Area: Dong Bac, Hon Gai, Ha Lam
In Dong Trieu- Uong Bi Area: Mao Khe, Vang Danh
+ For the company, internal appraisal: we conduct interviews in 05 sections ( 04 gross revenues dept. and the Financial and Accounting Dept. )
The grounds to take samples:
+ Geographically: along on the High Way No.18, there is 04 chief countries of coal mine: from Dong Trieu – Mao Khe in the first point, the following point – Hon Gai Area- is 50 kilometer from first point, the 3rd country is Cam Pha – 35km from Hon Gai and the Forth point is Mong Duong country – 35km from Cam Pha. Each country is a coal basin with several coal mine located in, they can be seen as 04 centres of coal distribution.
+ Business size: base on the production end product. In each country, the largest client with end product of 3million dozenss coal per twelvemonth, the smallest end product of 1.6million dozenss coal per twelvemonth.
+ Gross saless volume: based on the gross revenues informations in latest 1 or 2 old ages. The turnover of equipment we sold to each of client, that besides show the degree of relationship we have already built with them.
+ Relationship: each country we choose the clients with different degree of relationship, some of them we have remained the long term relationship, some of them we are developing…
Trusting on the above 04 standards, the respondents in these clients could stand foring for the whole market.
– We choose one or several members in the DMU of clients for in-depth interview who can show clients ‘ point of position, there are 60 respondents to be interviewed including:
+ Director, Vice managers: carry oning the interviews in the company where the relationship is near, we see each other as spouse.
+ Manager of Technology Dept. , Chief Accountant, Manager of procurance Dept. Planing Dept.
+ The Manager of the Unit where the equipment is used in production line ( the user )
For the sentiments of company ‘s sales representative: we choose 30 respondents who are:
+ Gross saless Directors
+ Gross saless people.
+ Administration Military officers
The entire respondents for interview make a sum of 90 people.
For focal point group: with the respondents about the same as in-depth interview, respondents are more normally invited to take part in are: the helper to the manager, the experient applied scientists, the Planning Officers, the buyers who prepare the procurance processs, the possible client representative ( some clients who have the similar heavy plants such as: building sector, hydropower… )
Set up Interview usher and treatment guilde:
Interview guilde: because the aim of our research is explorative so we do non necessitate a formal closed questionares, Alternatively we might fix a brief usher, open-ended inquiries for each type of interviewees, with appropriate intimations given out while questioning. Or we can utilize the “ how and why ” inquiries for in-depth treatment to specific issue and we can derive deeper apprehension. This because, For illustration, when we want to understand why and how investor decide to take the non most advanced equipment in a certain undertaking, a formal questionaire may curtail the treatment and do non give a full geographic expedition of the purchaser ‘s point of position and appraisal.
Discussion guilde: similar to interview, group treatment besides use open-end inquiries. Here, The function of moderator is really of import in making the natural environment for respondents to show and talk out their appraisal and point of position to the issues we care about.
From the secondary informations collected and Primary informations recorded in interviews conducted by gross revenues individuals, the Board of manager will hold the meeting with directors of all sections. In the meeting, we discuss and examine the consequences of the cooperation with each client in the yesteryear, related to the phenomenum from the information feedback and give out the account of the contexts.
2.3.8 remarks on consequences from studies
Consequences from clients:
+ For the inquiries about the beginning of informantion that members in DMU normally obtain, we find the consequences as followerss:
+ exhibition: 10 %
+ sales representative: 72 %
+ cyberspace: 5 %
+ seminar: 12 %
+ other: 1 %
This rates ( 70 % ) show that purchasers chiefly search for and have proficient specifications and other related informations from sales representative. The following beginnings are seminars and so exhibitions, purchasers said that these other beginnings of information merely play the function of a intimation for them to hold thoughts about which engineering or machine they will be after to purchase in the hereafter. So that, the regular contacts of sales representative with purchasers will take to the large possibility to set an leg in to the future gross revenues.
+ about company ‘s merchandises: there are 87 % of interviewees give positve appraisals about the merchandises the company supplied while there are still 2 % have negative sentiments. These are rather normal consequences due to any machine have the rate of mistakes or even the broken machines may come from the worker ‘s operation, nevertheless they are still conveying the incommodiousness to the clients.
+ about services: the policy of the company and the public presentation of sales representative would be the two chief facets to hold ratings on from clients about the services supplied. The rate of 84 % “ good ” and “ really good ” is a instead optimistic figure for the public presentation of the salesforce in selling. 1 % of clients unsatisfy with the services of the company shows that sales representative sometimes do non run into their demands, may be the preparedness, attitudes or enthusiasm… . this bad public presentation of sales representative may come from the nonsubjective and/or subjective grounds themselves.
+ attitudes of sales representative: most of interviewees have extremely appreciated the attitude of sales representative. The jobs lie in 1 % “ bad “ appraisals for that the board of manager must re-train and re-educate sales representative in order to better the quality of services and therefore better the image of the company. Besides the appraisal of merely “ just ” is instead noticeable, this may demo the fight of the services in comparing with that of rivals ‘ .
+ cognition and experience: although the first-class experts worked for the company is restricted ( merely 20 % said “ really good ” ) , but with the greatest attempts of the bing people our salesforce is still commented postively with the rate upto 92 % and it is pleasant to see that no sentiments assesses “ bad ” .
Consequences from internal sales representative:
+ with the same standard of the study conducted with clients, the consequences from studies conducted with internal staffs are similar. The difference in the evaluation of each standard is little that proves the studies ‘ consequences are credible.
+ The rate that the company should pay attending is the unsatisfaction of sales representative expressed in following factors: 6 % of “ bad ” to the gross revenues squad organisation, 3 % of “ bad ” to Working environment, 2 % of “ bad ” to Salary policy and 5 % of “ bad ” to chance of publicity. For these above internal Is, the company should see the sentiments of sales representative for doing any alterations or accommodation in order to better the public presentation of the company externally and internally.
From the primary informations obtained above and the secondary informations collected from many beginnings ( internal and external ) , the writer will utilize to measure the world of Itasco-HN in salesforce public presentation in the following Part 2.4 in order to hold appropriate policies and solutions stated in the following Chapter.
2.4 Gross saless force of ITASCO-HN
2.4.1 Salesforce Structure.
In Itasco-HN, we do non put up the selling section due to the gross revenues techniques applied is chiefly direct contact of sales representative to clients ( here, the client ‘s agent ) . Each sales representative realizes the gross revenues activities, the selling activities besides can be realized at the same time any clip if necessary or in the planned scheldule.
Itasco – HN uses chiefly the client salesforce construction, in which we devide the salesforce into gross revenues section, these gross revenues depts. devide salepeople into squads of 3 or 4 sales representative and normally there is a squad specialising in doing administrative processs and paperworks in organizing with gross revenues squads.
These squads concentrate on client ( or clients ) that they have closiest relationship. Even though, between squads may originate struggles because the merchandising relationship of one squad can be recommended by its client to the other clients belong to the other squad ‘s district.
The sentiments of interviewed sales representative that do non believe the client salesforce construction is sensible, sentiments “ just ” numbering for 13 % and “ bad ” numbering for 2 % . This rates show that they do non fulfill with the state of affairs in which the sales representative responsible for other client still jump into his district to do gross revenues. This state of affairss go on sometimes and the Board of Director need control purely the merchandising activities and equilibrate the relationship between the gross revenues squads for the common end, that is the growing of the company.
Merchandise construction: there are two gross revenues squads to be assigned with their specific merchandises for selling to all clients. The company have to construct a mechanism of compensation different from that of other squads in gross revenues sections.
One squad appointed to cover with all gross revenues activities related to heavy-truck in all clients within Vinacomin and others every bit good. This group realizes their ain guarantee and care services for their merchandises: Kamaz, Scania, Kraz.
Some applied scientists in the truck squad do non fulfill with the long clip of importing spare-parts for guarantee service. The hold leads to much incommodiousness to the users because the halt of machines non merely causes losingss to their company but besides affects straight to their rewards. This can be proved with 3 % of sentiments measuring “ bad ” for the handiness of spare-parts and may be the ground of 1 % of interviewees do non fulfill with the service of the company.
The other squad appointed to cover with clients for selling day-to-day nutrient and grocery. This market is really possible due to the large and stable demand but it besides require the great attempt from the sales representative in footings of quality, promptness and diligence. The merchandises such as milk, rice, drink and foodsuff require foremost the best quality due to they associate to the wellness of immense figure workers
The caput of the nutrient and grocery merchandising squad has claimed for more sales representative in to the squad due to the state of affairs that the goods of this squad are frequently broken during transit and demand to be changed instantly. The squad hence must allow person ready for settle this issues
Of class, the sales representative of all gross revenues squads are required to back up one another in developing the clients relationship. Teams specialized in one merchandise construction could have the recommendations and support from the squads of custormers construction and frailty versa.
The size of the salesforce:
Itasco-HN besides apply the work load attack to plan the size of salesforce. Over many old ages of experience, the company has found out the most appropriate format of gross revenues squads. For the client construction, sales representative were devided into gross revenues squads including 3 or 4 one for each, and for the merchandise construction, squad of selling trucks needs 8 sales representative while the merchandising nutrient squad includes 6 1s.
The forces related to direct merchandising activities in 04 gross revenues sections are 62 people over the entire company ‘s forces of 93, accounting for 67 % .
The figure 31 % of sales representative merely think the gross revenues structue is merely just, even 6 % think that is bad, these people think that they have to drag behind a long line of indirect on the job staffs. In order alteration this state of affairs, the Board of manager should reconsider the enlisting policy by curtailing the enlisting based on the relationship unrelated to gross revenues activities.
The whole merchandising activities of Itasco-HN relate to the face-to-face contact of its sales representative with clients ‘ purchasing agents so that beside the personalities to be seen as obligatory to the sales representative such as enthusiastic, dynamic, decisive… the company besides requires its sales representative to be well-trained. This is general scheme.
In pattern, we know that clients foremost appreciate good attitudes of sales representative to the plants. Merely when sales representative are eager to make something they so can make that with their best attempts and concentration. For the present salesforce, most of our clients extremely assess them, with the positive sentiments up to 83 % . This is the get downing measure for us to believe that our following selling procedure will be favourable if the sales representative maintain their attending to implement the other merchandising undertakings.
+ Source of campaigners: there are 03 chief beginnings that company are normally considered to choose sales representative:
Beginning 1: pulling the sales representative who have experience in this market or from rivals ‘ . All of us know that If the company sucessfully attracts one key sales representative from rival, the company could non merely cut down the preparation disbursals, but besides explore the experience of that one, obtain the relationship and so the more market portion and do the rival become disadvantage in conpetition.
Beginning 2: applied scientists graduated from the technological universities and sales representative recommended by the bing sales representative. These salespeople history for the most portion of preparation budget but the clip for them to sucessfully set up a client relationship is longer.
Beginning 3: recruiting through the recommendations of some clients or authorities officers which may convey some staffs non as expected. They are normally these officers ‘ relations to fall in in the organisation non for the advancement in calling but for the stable place merely. They are called “ relationship staffs ” . They are truly the load for the construction and the budget of the organisation. This is a feature of the state-owned theoretical account remained in the company. this state of affairs may take to the unsatisfaction in sales representative who genuinely contribute to the growing of the company, particularly the period of gross revenues traveling down.
+ The processs of enlisting:
In comparing with other organisations ‘ procedure, Itasco-HN ‘s is shorter. Some stairss may be bypassed or adapted for the world in the company, for illustration, written trial normally is ignored and merely unwritten trial to be organized or the demand from gross revenues sections is reported straight to Board of manager and so Human resource unit are required to set up assignments with person from one of the beginnings stated above.
The personal paperss and certifications of campaigners are normally required to subject to the full and purely in conformity with the ordinances of Labor Laws of Vietnam.
The chief preparation method applied in Itasco-HN is field preparation. The company normally try to develop and train sales representative with greatest attempt for them to catch the techniques and accomplishments of buiding, keeping and developing relationship.
Alternatively of forming a schoolroom preparation, the company will direct them to a gross revenues squad, during the concern trips the members of gross revenues squad so will present to new comers the overview of market, overview of clients, rivals, lines of merchandises they engaged… With personal presentation and explaination, the new comers could get the hang the state of affairs more clearly, more item.
The squad will do the atmostphere warmly like household for the new comers to fall in in of course. The edifice concern relationship accomplishments start from internal co-worker contacts.
Hereunders are some existent patterns in which the trainees can take portion in for obtaining accomplishments, cognition, experience and relationship:
+ The preparation procedure ever begins with specific undertakings in fixing proficient paperss and a set of legal paperss for take parting in a command.
+ The following, of class, is the attending in the Bid gap. Here, new comers have the first position of client, rivals, the procedure of procurance. If the offering have most advantage points in comparing with other rivals, the squad ( representative for the company ) stairss to the negotiating procedure, the squad really is dickering with client for most favourable conditions in the coming contract. And during this period, new sales representative can larn how to recognize what are the company ‘s advantages, what are client ‘s precedences, what are the client ‘s most pressing demands… . The new sales representative besides have first face-to-face contacts with purchasing participants in DMU and have chance to detect the experient co-workers to pattern the personal merchandising accomplishments.
+ The undermentioned measure is to hold the contract done: preparing goods for bringing, bringing, have the goods approved and taken over by the clients, payment advancement tracking… . The trainee is assigned the particular works for them to hold existent cognition from administrative, legal processs to physical exist of machines, from telephone communicating with related spouses to face-to-face contacts with users, proficient applied scientists and fiscal experts…
+ The last measure in a merchandising procedure is the after-sales activities. Although the public presentation in this period is assorted but they frequently play a really of import function in keeping foremost the good image of the sales representative and so the celebrity of the company. In this measure, sales representative can larn how to pass on with the users and other determination doing members of client, in any fortunes the sales representative should do them satisfied with the merchandise ans services accompanied subsequently.
Practically, even the machine is truly good quality, some jobs may still originate due to operation mistakes of users but for some ground they do non accept the resposibility instantly, the sales representative have to settle these jobs for maitaining good relationship ( with simple mistakes and acceptable disbursals ) or have to turn out the operational mistakes in a most cagey manner. Even in the instance of inevitable hold, sales representative must happen the alibis moderately for non doing them frustrated because the users normally have large force per unit area from the broken of machines and go easy unsated. One “ gold rule ” for sales representative is to be controlled and to equilibrate between short-run and long-run benifits, do non allow the little issues affect negatively to long-run relationship.
The field preparation is extremely appreciated by most sales representatives. They said this type of preparation is valuable for them to larn experiences from the cardinal sales representative or to larn how to work in a squad. The figure of sales representatives have positive consequences numbering up to 86 % ( in which 10 % have gained some first gross revenues turnover after 06 months with the aid and support from the squad caputs.
Even though, some sales representatives have jobs in fiting with the preparation plans and accommodating with the new environment conditions, their sentiments are: the clip for long trips are excessively difficult for them, timetable is continuously mutable, “ they have few chances to reach and constructing a stopping point relationship with clients ” , “ they feel large force per unit area from work load assigned ” … . and they assessed that the preparation classs are bad, 4 % of salespeople shown the negative responses, 10 % of salespeople shown that the classs have no outstanding affects.
Another preparation method in field preparation is to allow the new but experient sales representative or well-trained sales representative with a certain relationship to develop gross revenues by themselves. The Board of Director and Gross saless Directors must see carefully their personalities, experience, accomplishments… earlier make up one’s minding to allow them run independently. The ground we all have already known, that is the little mistakes or errors in B2B minutess may take to unforeseeable large losingss in footings of money and relationship every bit good. This must be avoided.
For proficient cognition preparation intents, we normally coordinate with some makers to form trips to the mills of makers and to existent sites where their machines have been utilizing. In these trips we invite serveral proficient experts from clients accompanied by our gross revenues people. The intents of the trips are, in one side, our sales representatives have a good chance to do the relationship closer, in other side can demo the clients that we, with the function as reseller but have the great support from makers with advanced engineerings.
In standards of Ability of edifice relationship, when we conduct the study, our salespeople receive good appraisals from clients with the rate 86 % , particularly the sentiments “ really good ” are 50 % . This is genuinely impressive figure and reassure the scheme for developing sales representative is in the right manner.
Itasco-Hn now uses the payment policy of basic salary plus gross revenues for gross revenues public presentation, in which basic wage is calculated based on the ordinances of Vietnamese Government Labor Laws. The company pay a bundle of salary to the Gross saless Departments, the Gross saless Dept. so administer this bundle to the gross revenues teams it manages. The wage of each gross revenues squad is different based on the completion of gross revenues volume they are assigned in that month.
Monthly sum salary = Basic salary + Gross saless wage ( productiveness or gross revenues perfomance wage )
The basic wage applied conformity with the Decree No. 205/2004/ND-CP dated Dec. 14, 2004 stipulated by Government. The difference chiefly comes from the computation of gross revenues salary, in which there are two policies of wage for direct gross revenues force and indirect salesforce ( back uping and disposal forces ) :
a?‘ wage of Gross saless Dept
Gross saless Salary for sales representative = x Personal Coefficient
a?‘ coefficient of Gross saless Dept.
a?‘ wage of whole office
Gross saless Salary office staff = ten Personal Coefficient
a?‘ salary coefficient of office.
Levels Coefficient x K – Coefficient
Personal Coefficient = x Real working yearss
Monthly working yearss ( 22 days/month )
Levels Coefficient: diffentiate the salary among places or the complexness or simpleness of undertakings and responsibilities, runing from 1.5 to 10 ( Table 3.3 )
K-coefficient: the completion of plants of each person/team/group. The completion of plants will be given a coefficient, runing from 0.7 to 1.2
+ For forces who do non finish their plants in 03 months continuously will have the basic wage in the 4th month subsequently.
+ For forces who do non finish their plants in 06 months continuously will have 70 % basic wage in the 7th month afterward and will be moved to other place or dismissed ( depend on degree of completion compared to program ) .
The methods of wages or punishment are agreed in the quarterly meeting with participants from Board of Directors, Gross saless Directors, Labor-union representative to give determination for each instance. The consequences are informed widely to the whole company.
The rate of sentiments appriciate “ really good ” and “ good ” salary policy count to 68 % of entire. This bulk of sentiments suggests the Board of Director be reassured about the present policy but besides need some accommodations due to the rate of 32 % sentiments assess “ just ” and 2 % sentiments of “ bad ” .
This policy, in certain extent, do non excite sales representative to lend to the common ends with their highest attempts for winning commands or high-value contracts. Let do some comparing between 02 sales representative in one gross revenues squad, a sales representative who can convey many benefits from his personal relationship with a sales representative who merely do the merchandising works, the wage of the first one is little more than that of the latter based on the present salary policy of the company.
Person seem to be satisfied with the benefits received and they do non do any attempt for their publicity in calling.
Along with salary the staffs besides receive Fringe benefits stipulated in the Torahs, for illustration, holiday, illness, pregnant holiday for adult females, wellness insurance, pensions insurance… these benefits are mandatory because the company developed from the state-owned theoretical account, precedence of benefits for forces are still maintained in payment policy.
Although the satisfaction in payment still have some issues but the payments for fringe benefits bring the full positive attitude of all salesforce, 93 % for “ really good ” and “ good ” .
The disbursals for keeping and developing relationship besides be repaid to salespeople, this is sensible ordinance but in the fact many disbursals originating unscheduled while rules of accounting accept a portion of these entire disbursals. How will the company settle this issue? How will the company stimulate sales representative ready to put in relationships before acquiring their money repaid? I will come back to this job in the following chapter to happen solutions.
Oversing and measuring
+ Directing Gross saless:
Itasco – HN uses two different pull offing systems for gross revenues plants and office plants in which gross revenues squads are managed with consequences of plants while officestaff is managed with on the job yearss.
The company applies indirect direction system for gross revenues squads in which gross revenues people can utilize their clip independently. The consequences of the plants are concluding aims. Reporting mechanism realized chiefly on telephone ( in instance of pressing sales representative can straight phone to the Board of Director ) or e-mail to Gross saless directors, the directors so report to the Board in a meeting at Friday every hebdomad.
However, the company besides have to put a boundary for utilizing clip budget: . , for illustration, gross revenues director can necessitate gross revenues people or gross revenues squad at least one twenty-four hours in hebdomad yearss to see chances nearby their geographical districts, another twenty-four hours to see new clients and the lelf for key-customers. Otherwise, gross revenues people prefer to utilize most of their clip for their acquainted clients. The company besides encourage salespeople to develop new clients, of cource, with a policy to honor them for good consequences.
The state of affairs is different in office plants, applied in Finance and Accounting Dept. , HR & A ; Administration Dept. , and back uping staffs in Gross saless Dept.. The company requires these staffs a full working twenty-four hours in office for settling all issues and gross revenues state of affairss originating every bit shortly as possible. More, in instance of neccessary officestaffs are required to work overtime or in weekend ‘s yearss… in order to assist salespeople with biggest attempts.
This ways of directing gross revenues activities receive the positive sentiments from clients through the rate of Building relationship ability upto 83 % . Internal salesforce ‘s sentiments in working invironment is 67 % “ good ” and “ really good ” and salesforce attitude is 80 % “ good ” and “ really good ” . The feedback that plants are overload sometimes comes from office plants, this can besides be seen in the negative sentiments rate of 3 % “ bad ” for working environment
Itasco-HN Board of Director ever control the activities of gross revenues squads from the feedback information in hebdomadal studies to guarantee that selling activities must follow with Torahs. The Board besides direct the Finace and Accounting Dept. must oversee carefully the deadline and reassign money for importing revenue enhancements and responsibilities to revenue enhancement bureaus with first precedence. The other priotity is that all accounting processs and paperss must be conformity with accounting criterions ordinances…
+ Motivating Salesforce:
Based on the theory of Abraham Maslow, the company defines the objects to give the appropriate methods of motive. The usual awards for new sales representatives are money for their good consequences of selling while the awards for places of directors or higher should be company-paid hodidays ( depending on the degree of completion of plants assigned ) or abroad trips ( for outstanding merchandising consequences ) . These trips are frequently organized one time per twelvemonth. The other ways of motivation is the gift and enfranchisements which are granted in the gross revenues meetings.
Motivating gross revenues people with gifts or awards to their household members. This can be powerful incentive since sales representative frequently work unusual hours and off from place, and therefore have disrupted place lives ; the partner or kids or parents ( Vietnamese civilization ) is sometimes neglected in favour of the occupation, so a award or gift aimed at them can assist ease the sales representative ‘s feelings of guilt. This make the sales representative abandon some selfish personal benefits to function foremost for the company ‘s general ends.
Some illustrations: in summer the company organizes at least one time per twelvemonth a summer-holidays in a beach, all members ‘ married woman and kids are invited to take portion in at company ‘s disbursals. In this event many activities are hold for the intent of doing the company environment like an household one. Other event is that at the terminal of a school twelvemonth, kids of staffs who obtain the learning consequences from good and higher are given a Certificate and a gifts for their attempts. Or in the Mid Autum Festival, a party is hold for all chilren of staffs in the company… .
The motivation methods used by the Board of Director every bit good as the tradition of the company demontrate clearly on influence to salesforce ‘s appraisals, up to 93 % of sentiments are “ good ” and “ really good ” to the other warefares granted by company ‘s policy though the assessmnents are partially for “ fringe benefit ” standards.
+ Measuring sales representative:
In order to do accurate determinations on way, compensation and motive for sales representative, the company has applied a set criterions of measuring sales representative. These measuring standards are constructed based foremost on consequences of plants they gained during selling procedure in a certain clip, others including, appraisals of gross revenues directors and caputs of gross revenues squad, the appraisals of other salespeolpe ‘s appraisals. All of these internal appraisals are most of import factors used to acquire the carnival and accurate ratings on sales representative.
The lone external factor is the sentiments of clients. It is used to examize if the internal consequences of a sales representative are exact or non, is at that place any facets of sales representative need more considerations.
The recent studies in general give a instead good appraisals to the sales representative of Itasco-Hn, the of import standards required for each sales representative get high rate of appriciation. From company ‘s internal sentiments: attitude of sales representative with 80 % “ good ” and higher, cognition and accomplishments with 90 % “ good ” and “ really good ” . The bing jobs could be among sentiments with “ just ” appraisals from the point of view of sales representative, but the information beginnings that the company should trust on are the opnions from clients ‘ point of view. There are some sentiments that do non fulfill the perfomance of sales representative given, this rate is 1 % of sentiment “ bad ” . The negative feedback from clients chiefly come from the grounds of aftersales-services. The board of manager should necessitate all units in the company re-check all internal processs for errors or drawbacks for accommodations or alterations in instance of demand.
The ultimate aims are to do perfomance of salespeople become more efficaciously and furthermore, the company ‘s advantage, capableness and repute become better.
Chapter 3: Recommendation AND SOLUTIONS
The basic scheme of V-Itasco purposes at doing Itasco-HN go a specialist in gross revenues activities, so the short-run or long-run waies all must be planned for that intent. Afterlifes are some suggestions on the waies of developing gross revenues activities and gross revenues force:
3.1.1 for developing its market and merchandises lines:
– the company should put the scheme for obtaining at least 05 % of entire capital invested in equipment of Vinacomin and go the biggest provider of mining equipement by the twelvemonth 2015. This is executable figure if we take into history many advantages when once we are the member of Vinacomin ( though now equitized ) and have many old ages of experience acting in this particular sector.
– base on the experience of licensing contracts realized in heavy truck field where Itasco-HN play the function of Gross saless and aftersales service for the undertaking, the company should propose the same theoretical account of making concern for other merchandises such as: explosion-proof gum elastic electric overseas telegram, explosion-proof electricity motor, flame-proof gum elastic belt… if V-Itasco cooperate in these undertakings we will non merely take the advantage of domestic proficient workers, geographically location but besides the handiness of inputs as gum elastic, Cus…
– the company should besides propose with V-Itasco to put up distribution chennels the merchandise of bricks for building that V-Itasco bring forthing in Thai Nguyen building stuffs Plant. ( V-Itasco has invested in a Brick Plant in Thai Nguyen Province since the beginning of 2011 and production started from mid twelvemonth 2012 )
– undertake the logistics service for V-Itasco and Vinacomin. This service can besides convey singular benefits to the company because Vinacomin yearly have to import and do a big volume of stock list of stuffs and machines for production. The comapny has chances to supply logistic service due to mining companies in Vinacomin are appointed to concentrate on production merely, they do non put up a section or unit to gain import processs every bit good as international payment.
– develop the field of providing stuffs for Thermal Electricity Plant within Vinacomin. This is a possible new field of concern, the market volume is instead large while our market portion is still moderate. We about sold some metal merchandises such as: steel form U, V, H, I… . that conveying low rate of benefit if we compare with the capital used. the figure of this type of client are increasing due to some new mills under building, e.g. Mao Khe Thermal Power Plant, Uong Bi Thermal sencond Plant, HaiPhong, ThaiBinh, Mong Duong ( the biggest 1 with end product 1,200MW )
– Leasing: to research the advantage of our cooperation in piecing heavy shits truck with Kamaz, Kraz ( Russia ) and Scania ( Sweedish Brand – Asia Region Branch ) , we are developing some fleets of dump truck for renting service to the excavation companies in Vinacomin. This is besides expected to be the concern that lending mostly to the sale volume of our company.
– To develop the market outside Vinacomin: in recent old ages, Itasco-HN has supplied machines and stuffs for the plants of building tunnels of hydro-power undertakings in Song Da Corporation. The plant in this field use many same types of machines and stuffs as in Vinacomin and we can take the advantage of competitory monetary values and bringing conditions to enlarge this market. This is a possible and dispute one besides.
3.1.2 for bettering salesforce quality:
– to construct a salesforce with the size of gross revenues squad every bit little as possible for the effectivity of perfomance. With little size, each member of the squad must be really dynamic, independent and organize fluently with each other.
– The company would besides give each sales representative a opportunity to be trained abroad for obtaining the most advanced merchandising methods and techniques, every bit good as have opportunity to larn about the new tendencies of making concern internationally.
3.2 Aims in short-run:
The economic recession consequence deeply to concern program of Itasco-HN for the twelvemonth 2012, by the terminal of Quarter II, 2012 the consequences reach merely 40 % program of gross revenues turnover but the net income reachs 48 % program. With a hope that the contracts we signed in the first two quaters will be realized efficaciously in the following two quarters, the whole program of the twelvemonth will be performed succesfully.
– to derive entire turnover growing at 103 % for the whole twelvemonth 2012 in comparing with that of the twelvemonth 2011 at the value of VND 550,000 1000000s. However, with the methods of direction improve, the net income should obtain the sum VND 3,000 1000000s.
– to increase the ratio of stuffs in gross revenues volume, now the ratio of stuffs is merely 20 % would be increased to at least 25 % in the last months of the twelvemonth. We should increase the gross revenues of stuffs because they create more benefits if we consider them under the rate of net income.
– Average income of staffs would be increased 20 % for the twelvemonth 2012 compared to 2011.
– attempt to refund 100 % sensible disbursals for sales representative
– to set up some gross revenues squads to open and come back to some large clients as: Vang Danh Coal mine, Nam Mau mine, Thach Khe Iron Ore Company from the terminal of Quarter IV, 2012.
– to put up ordinances for aftersales service to settle all guarantee and maintanance ailments within 24 hours from the clip of originating in order to better the appraisal of clients on the services up to 90 % “ good ” and “ really good ” and there will be no bad appraisal by the beginning of following twelvemonth.
Based on the findings in the research, based on the aims and waies of the company, 07 groups of solutions should be applied in short term every bit good as medium and long term with inside informations as followerss:
3.3.1 Constructing merchandising attacks for each members of DMU:
Each client has his ain choice of members take parting in DMU but in different clients the individual who play a decisive function in DMU is different. So that in order to shorten the procedure of nearing of sales representative to them, the company should construct a set of methods for showing and carrying to each state of affairs of selling.
The individual who can do determination demands particular attending and battles from sales representative and for other members of DMU we must non bury them. The company must develop the sales representative to retrieve the rule that: any attempt is utile, sooner or later. Any attempt of taking attention to client can convey in merited consequences.
+ Set up Maintanance & A ; Service unit: ( Figure 3.1. New organisation struture suggested )
At present, there are some unsated feedbacks from clients because the aftersales services sometimes are delayed while their production lines need continuously running.
Figure 3.1. New organisation struture suggested.
From the demands of that pattern, right after having ailments about the broken of any machines the company can inquire this proficient squads to get at client ‘s working site within 03 hours for deciding the jobs.
The care squads should be devided in group of two for each country ( 03 countries include Mao Khe-Uong Bi ; Hon Gai and Cam pha-Cua Ong ) , one can come to working site while the other can be on standby.
+ In order to settle the issue of struggles between sales representatives caused by the client salesforce construction applied in Itasco-HN, Board of Director should put up ordinances stated clearly that if one sales representative in other districts have the relationship and that leads to the success in obtaining contracts from client A, B or C… could have a fillip ( or a committee ) provided that he has recommended positively to the sales representative who has resposibility in that client appointed by the company.
3.3.3 Supply physical agencies and tools for salesforce:
+ Regularly oganizing the athletics events ( football games, badminton games, table tennis games… ) in which the company invites the engagement of clients. This can non merely better the integrity inside the company but can besides make the chances for sales representative more easy to do relationship with different clients.
+ Set up other 02 Stationss in 02 countries for providing adjustment to salespeople. The present one in Cam Pha has shown that it creates non merely convenient suites for sales representative but besides a good infinite for spare-parts stock ( the land floor is normally used as a warehouse ) . This can salvage tonss of disbursals for sales representative and company every bit good. We can make some simple computations, at the monetary values quoted in Quarter III, 2012:
On norm, one sales representative stay in hotel 2 nights/week x 04 hebdomads = 8nights/person/month
Among 62 people in Gross saless Dept. , at least 35 salespeople on a regular basis go on trips x 8 nights/person/month, make sum of 280 nights/month.
Expense for hotel suites: 280nights ten VND 300,000. = VND 84,000,000/month.
If we rent 03 houses in Uong Bi, Hon Gai and Cam Pha ( with approximately 300 square meters each, each house include 03 storages, 100m2/storage ) costs VND 45,000,000. at upper limit, We will salvage VND 39,000,000./month, for mere disbursal of hotel suites.
Many other life disbursals salespeople can salvage if they live in a house that are non mentioned. The disbursals for warehouse that can be saved is non a little figure.
The more of import benefit is that the sales representative remaining together can portion experiences, accomplishments, information and urge each other the relationships with their clients.
+ Set up agenda for sales representative ‘s stay in these Stationss for longer period ( may be two hebdomads ) and each sales representative have to recognize his bend. If we have to lease a hotel room for remaining in Quang Ninh, in the weekend sales representative normally want to come back place and return to the topographic points next hebdomad to go on the plants. The sales representative must bear the disbursals for going or they must lease hotel room for the two yearss of weekend waiting and pass many life disbursals.
+ Supply company pick-up autos for care squads, this is the most suitble agencies of conveyance for both salespeople and care applied scientists. It can transport people and besides spare-parts in the rear box. These pick-up autos are used in 03 Stationss above-named.
+ Requires each gross revenues squad to put a laptop computing machine in which the company use a package that manages the merchandising procedure, stock lists, proficient information, proficient paperss… for sales representative can do the personal merchandising more handily and efficaciously. At the same clip, all internal communicating should be made by internet-based applications such as: studies, facsimiles, telephone, on-line meeting…
+ In recent old ages, there are many households working within Vinacomin send their kids to stydy mining engineering in China. This is a possible and qualified beginning for enlisting and we should give precedence to it in enrolling procedure. Succesful enrolling these campaigners we can profit from the undermentioned facets:
With the advantage of relationship of their household in Vinacomin and understanding the features of Vinacomin ‘s people, working wonts every bit good as life wonts, they need shorter clip to construct a relationship with clients in comparing with one who come from the outside Vinacomin.
We about need no more preparations for them on knowlege of excavation equipment and excavation engineering.
Coal excavation is one of the hardest and most unsafe sector, hence, people who normally have household ‘s tradition in this sector so when they choose their calling in this field they must hold a speical love.These sales representative inherit a tradition, in certain extent. This can do them more royal to Itasco-HN, avoiding big sum of disbursals caused by the turnover of employees.
+ Itasco-HN should steps by stairss restrict the enlisting from the beginning of unrelated merchandising relationships. These staffs lead to the salary load to the company and besides do the unsated attitudes of other staffs who truly contribute many attempts to the perfomance of the company. this can do the working environment intenally become worse.
3.3.5 Salary and disbursals
+ The policy of basic salary + gross revenues wage, in certain extent, do non excite sales representative to lend to the common ends with their highest attempts for winning commands or high-value contracts. Particularly salespeople who can construct good dealingss and convey in many value-contracts, the difference in Personal Coefficient is non so merited plenty if they compare the attempts they given with the attempt the other sales representative do. Meanswhile, Someone seem to be satisfied with the benefits received and they do non do any attempt for their publicity in calling.
The alterations the writer suggest in wage is that:
Basic salary + gross revenues wage: for sales representatives who perform regular merchandising activities but do non convey in contracts based on their relationships.
Basic salary + gross revenues salary + gross revenues committee: for sales representatives who perform regualar merchandising activities and they can convey in contracts based on their relationship
The per centum of committee foremost suggested is:
– 0,5 % of contracts value for contracts value up to VND 500 1000000s.
– 0,3 % of contract value for contracts providing equipment or winning commands with value from VND 500 1000000s and the highers.
+ The compensation and fillip policy must tightly be implemented with the staff ‘s conformance with working subjects and ordinances. This is a of import factor of doing the just drama in the perfomance of the company.
+ The disbursals for keeping and developing relationship besides be repaid to salespeople, this is a sensible ordinance but in the world many disbursals originating unscheduled while rules of accounting accept a portion of these entire disbursals. How does the company settle this issue? The methods the writer suggests is that: company should pull off salesteams or gross revenues sections by a “ indirect policy ” , that is the maximal sum of disbursals on an sum of turnover could be repaid to salespeople. Management units do non care about how these disbursals to be spent, the gross revenues squads must set up themselves the disbursals on their merchandising activities.
3.3.6 Supplementing solutions for Personal Selling: CRM
Customer Relationship Management is an of import procedure for more effectual direction to gross revenues public presentation of the Company. Good CRM inside the company could do the gross revenues people become professional in gross revenues activities under the position of clients. This is truly an advantage that the company can make for back uping gross revenues people.
+ Step 1: Building Customers profiles:
To roll up informations of all clients that the company are covering with and so to set up an “ Cusomters profiles ” , from which gross revenues people can mention to before they want to do any contacts, selling attacks or merchandising processs… the informations may include: the value of gross revenues in old quarter/year, the history of payment, conditions of bringing, required conditions of guarantee, the possible demand in short, average and long-run, the purchasing agents who have influence on purchasing determinations…
+ Step 2: Customers Clasification:
The aim of categorization based on the gross revenues volume purposes at naming the appropriate gross revenues people and administering available resources to offer the best services to clients. This solution would be sensible due the consequences we gained must be deserved with services we have to give out.
Figure 3.2: the categorization of clients
+ Step 3: Constructing the policy to each group of clients:
There are different charateristics for each group of clients. the clients runing in Vinacomin regulated by legal status, fiscal conditions, technological degrees and working environment… different from the operation of clients in Song Da Corporation or other industrial sectors. Therefore, the company should construct the policy every bit specific as possible for gross revenues people more easy doing gross revenues.
+ Step 4: Evaluation:
The company should monthly measure the public presentation of gross revenues people, the alterations in every clients on forces, demand, purchasing processs, finacial conditions… for updating the clients profile and give the appropriate waies to the gross revenues pepople to accommodate with the new environment.
3.3.7 Build up criterions attacks for salesforce:
The determinations of purchasers based on the rational ratings, criterions and procedure but the purchasing agents who involve in doing determinations in the purchasing organisations are besides effected by other factors, may be emotional or external factors. Gross saless people must get the hang these facets of purchasing agents of each client and each state of affairs in selling procedure for giving the appropriate attacks and methods.
In Table 3.1, the writer suggest that the company should put up a signifier in which standards are rated on importance and precedence degrees. Salesperson can utilize this signifier to pull out the corresponding attacks to each agent, internally and externally.
Standards of Choice
Approachs of salesforce
others… … .
Quality, monetary value, payment, dependability of machine, economical overall, efficiency… ..
Matching attacks for each state of affairss
Mineral resources control bureau
Environment control bureau
Technology control agenccy.
– opened or protected
– restrict or promote
– proficient barriers
– effects to environment
Matching attacks for each state of affairss
Table 3.1: Behaviors of B2B clients and marketer ‘s attacks
In drumhead, Personal merchandising drama a really of import function in marketing in B2B market. For better advancing the gross revenues public presentation of salesforce, The company, in one side should back up sales representative by keeping at least or better the quality, offering the most competitory monetary value, offering the most favourable payment and recognition conditions… and besides should assist them by urging to construct good personal relationships with clients, in the other side.
Appendix No. 1
We examine the Buygrid Framework ( 3 )
This model is adapted from the Marketing Science Institute Series, Industrial Buying and Creative Marketing, by Patrick J.Robinson, Charles W. Faris, and Yoram Wind. ( Copyright 1967 by Allyn and Bacon, Inc. Boston )
Buying state of affairss
Anticipation or acknowledgment of a job ( demand ) and a general solution
Description of features and measure of needful point
Determination of features and measure of needful point
Search for and making of possible beginnings
Acquisition and analysis of proposals
Evaluation of proposals and choice of provider ( s )
Choice of an order modus operandi
Performance feedback and rating
Appendix No 2: Properties Measuring possible providers ( 3 )
Visit the provider to analyze production equipment, inspect quality control processs and run into the technology staff
Discuss systems for commanding procedures, run into the managerial staff and become involved in planning and programming supplies
Check the histories filed at Government ‘s concern registered bureaus or other public record office, run a recognition cheque, examine one-year studies if any
Capability to present
Determine the position of other clients of provider. Assess the production capacity of the provider, warehouse stocks of the merchandise, repute in the industry.
Appendix No.3: Evaluation attacks ( 3 )
Each Dept. holding contact with the provider is asked to supply a regular evaluation of providers against a list of outstanding public presentation factors. This method is highly subjective, but is easy to administrate.
Performance factors are graded harmonizing to their importance to the organisation: for illustration, bringing dependability might be more of import for some organisations than for others. The provider ‘s entire evaluation can be caculated and the provider ‘s offerings can be adjusted if necessary to run into the purchasing organisation ‘s demands.
Cost – ratio program
Here the purchasing organisation evaluates quality, bringing and service in footings of what each 1 costs. Good public presentation is assigned a negative mark, i.e. the costs of purchase are reduced by good public presentation ; hapless public presentation is assigned a positive mark, intending that the costs are deemed to be greater when covering with a hapless performing artist.
Appendix No.4: maps of gross revenues people ( 3 )
Gross saless people normally carry out the undermentioned maps:
Identify suitble possible clients and chances.
Identify jobs those clients have or might hold.
Establish a duologue with the possible client
Polish the position of the job to take history of the duologue
Identify solutions which are within the provider ‘s capableness
Explain the solution
Represent the client ‘s positions to the provider
Ensure s smooth procedure of supply which meets the client ‘s demands
Solve any after-sales jobs which may originate
Carry out: market research, roll uping information, studies