1SALES MANAGEMENT IN CAR DEALERSHIP Table of Contents Introduction................................................................................................................................2 Issues with Sales and Sales Leadership.....................................................................................2 Proposal to Address the Issues...................................................................................................4 Conclusion..................................................................................................................................5 References..................................................................................................................................6
2SALES MANAGEMENT IN CAR DEALERSHIP Introduction Sales in a business plays the major role of developing the customer count in varied regions to expand the base of the organizations as well as enhance the customer relationship such that the issues of customer retention is removed from the companies (Van der Borgh, De Jong and Nijssen 2019). The concerned salesperson who carries out the sales processes by dealing with the customers interacts directly to provide valuable recommendations and thus contribute to the amplification of brand awareness of a product or service (Bachrach, Mullins and Rapp 2017). The lead of the sales department is responsible for creating innovating sales strategies and managing the salesperson efficiently for the progress of the business. The paper will highlight the issues faced by a car dealership company in its sales department and the way-out by which the new sales manager Julian addresses those issues by implementing effective solutions. Issues with Sales and Sales Leadership During the job interview, the CEO of the car dealership company informed Julian that he need to manage a team of 10 salesperson consisting of eight men and two women. These people belonged to different age groups varying from 23 years old until 60 years. The aged ones were the experienced ones who possessed an immense knowledge about the processes of sales operations in the reputed organization of car dealership. On the other hand, the younger ones who hardly had experience possessed the advanced technical knowledge that the experienced people lacked at a significant rate. Hence, there was a difference in the viewpointsandopinionsinwithintheteamreducingthecohesivenessinthework atmosphere (Cachon, Gallino and Olivares 2019). The old ones suffered from inferiority complex and the new ones boasted off their technical knowledge. Due to the lack of efficient
3SALES MANAGEMENT IN CAR DEALERSHIP leadership by the previous sales lead in managing such a diverse team, the employees were frustrated enough and had enough leadership issues. Since the work atmosphere in the sales department of the branded car dealership company were not healthy and all-inclusive, the people working in the team were frustrated with their job profile. It is the duty of a salesperson to guide the customers with the right choice of product and inform them in detail about the product specifications (Pongpearchan 2016). In order to do that, the concerned salesperson need to converse with their customers effectively before suggesting the most suitable product for them. However, one will not be able to perform his or her job as a salesperson effectively, if they are not satisfied with their work environment (Bellini et al. 2017). In this case, too, all the ten-team members were not satisfied with their job and thus duly failed to interact with their regular customers. Due to the misbehaviour and miscommunication of the salesperson with their customers, the latter submitted complaints to the organization. The inefficiency of the sales workers to interact with the clients hampered the relationship of the car company with their loyal customers. Therootcauseofthelossofthecustomerbasefortheautomobile-selling organizationwasthepoorperformanceofthesalesteamwhileinteractingwiththe customers. The customers started preferring to opt for the competitors in the market while buying themselves vehicles over the mentioned car dealership organization in the given case study. Due to inability of the sales department to retain their customers and provide them with optimum services, the organization could not even catch up to the local market share (Liu, Miao and Lin 2019). The sales revenue started falling as well as there was a decline in the gross profit growth due to which the value of the share in the local market of the company was below the national average. The margin of sales went much below than the previous years that affected the company’s brand image at a high level. All these issues happened to occur because there was no leader who can manage the sales team effectively and guide them
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4SALES MANAGEMENT IN CAR DEALERSHIP to handle their customers in an efficient way such that they can contribute to the increment in sales, thereby increasing the revenue of sales as well as the profit margin of the company. Proposal to Address the Issues Since the sales team of the given car Dealership Company could not perform effectively due to the diversity in the age groups of the team, the first and foremost step that should be taken by Julian as a new sales manager is to maintain an all-inclusive climate in the team. He should engage all the members in teamwork such that nobody feels left out of ignored and everybody is given the equal chance to perform irrespective of their age group. Moreover, Julian should arrange for training sessions of the old members such that they can learn the new technologies such as handling CRM software while dealing with the customers (Francis 2018). In this way, the knowledge difference of technologies between the old and the new will be reduced to a significant rate. In addition, if the seniors of the team guide the juniors from their own learning experiences, the juniors can gain immense knowledge about the types of customers and the market that will prove to be effective in their service. Thus, Julian will be able to bring about a consistency in the performance of the team members that will help in the sales growth of the organization of car dealership. Since the clients were frustrated with their job profile, they could not attend their customers in the right way and dealt them in a very bad manner. Hence, to recover this particular issue of dealing customers in the right way, the newly appointed sales manager Julian should provide training to all his teammates on how to interact with the customers in a proper way (Atefi and Pourmasoudi 2019). He should guide them with the right questions that they should ask to the clients while interacting with them about the most apt choice of buying cars from their organization (Rangarajan et al. 2018). The team members should also conduct a market research about the types of customers and their preferences in general about
5SALES MANAGEMENT IN CAR DEALERSHIP the cars. This will help them to prepare with the set of questions that they will ask chronologically one by one and determine the best choice for the clients. If they can serve their customers efficiently, they will be gaining client satisfaction, which will automatically increase their business sales. Finally, to attend the issue of decline in sales growth and increase the profit margin of the company, Julian should carry out a market research about the buying preferences of the customers and accordingly develop a marketing team that will be responsible for promoting their business apart from selling it. The marketing team should also incorporate the digital measures such as social platform and websites that will help in reaching out to a wider range of clients through Internet connectivity (Gaddefors and Hashem 2019). Julian should increase the cohesiveness of both the teams such that, one can promote the business to numerous clients and while the clients return back to the organization, the sales team can deal them accordingly. Thus, this process will be effective not only in retaining old customers but also bring in new customers and stand out from the competitors in the market. Conclusion The assignment highlights the importance of the activity of the sales team in a car dealership company. No matter whatever organization it is, the sales team of a particular company is responsible for building the relationship with the customers because they are the end persons who deal with the clients directly and guide them according to their choices. However, the sales team of the reputed car dealership organization failed to perform due to the absence of a proper sales leader. The paper highlights the issues such as employee dissatisfaction, decline in sales and many more and thereby suggests recommendations for Julian the new sales manager on how to deal the issues effectively.
6SALES MANAGEMENT IN CAR DEALERSHIP References Atefi, Y. and Pourmasoudi, M., 2019. Measuring peer effects in sales research. Bachrach, D.G., Mullins, R.R. and Rapp, A.A., 2017. Intangible sales team resources: Investing in team social capital and transactive memory for market-driven behaviors, norms and performance.Industrial Marketing Management,62, pp.88-99. Bellini, E., Dell'Era, C., Frattini, F. and Verganti, R., 2017. Design‐driven innovation in retailing:Anempiricalexaminationofnewservicesincardealership.Creativityand Innovation Management,26(1), pp.91-107. Cachon, G.P., Gallino, S. and Olivares, M., 2019. Does adding inventory increase sales? Evidence of a scarcity effect in US automobile dealerships.Management Science,65(4), pp.1469-1485. Francis,A.K.K.,2018.CustomizedCRMSolutionforImprovingProductSalesand Customer Support. Gaddefors, E. and Hashem, S., 2019. An Intraorganizational Perspective of Sales Teams: A case study of the design and processes of a sales team in the cloud software industry. Liu, Q., Miao, K. and Lin, K., 2019, June. Inventory Management of Automobile After-sales Parts Based on Data Mining. InProceedings of the 2019 3rd High Performance Computing and Cluster Technologies Conference(pp. 195-199). Pongpearchan, P., 2016. Effect of transformational leadership on strategic human resource management and firm success of Toyota's dealer in Thailand.Journal of Business and Retail Management Research,10(2).
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7SALES MANAGEMENT IN CAR DEALERSHIP Rangarajan, D., Sharma, A., Paesbrugghe, B. and Boute, R., 2018. Aligning sales and operationsmanagement:anagendaforinquiry.JournalofPersonalSelling&Sales Management,38(2), pp.220-240. Van der Borgh, M., De Jong, A. and Nijssen, E.J., 2019. Why helping coworkers does not always make you poor: The contingent role of common and unique position within the sales team.Industrial Marketing Management,77, pp.23-40.