Sales Force Management Report: Analyzing Tesco Plc's Strategies

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This report provides a comprehensive analysis of sales force management, focusing on Tesco Plc as a case study. It begins by identifying the benefits of excellent customer relations, exploring various working practices and methods to maintain these relationships, and highlighting the impact of technological forces on sales force management. The report then delves into the personal characteristics that motivate salespeople, critically analyzing the components of a salesperson performance model, including behavior, role perceptions, and satisfaction. It further examines the cultural forces affecting salesperson performance and evaluates the criteria for selecting salespeople for the international market. The report also identifies sales force strategies for planning and implementing sales tasks, addressing internal and external environments, and utilizing financial and non-financial information to assess resource requirements. It concludes by evaluating the impact of sales forecasting on sales targets and planning resource utilization to meet these targets. This detailed analysis provides valuable insights into effective sales force management practices within a real-world business context.
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Management of Sales Force
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1. Identify the benefits of managing excellent customer relations...........................................3
1.2. Evaluate different working practices and methods to maintain customer relationship
within the organisation................................................................................................................4
1.3. Identify the use of the technological forces improve sales force management practices....5
TASK 2............................................................................................................................................6
2.1. Identify the personal characteristics on salesperson motivation..........................................6
2.2. Critically analyse the components of salesperson performance model e.g. behaviour, role
perceptions, and satisfaction.......................................................................................................7
2.3. Critically identify the cultural forces affecting the performance of salespeople.................9
2.4. Critically evaluate criteria of selecting the best salesperson to target international market
...................................................................................................................................................10
TASK 3..........................................................................................................................................11
3.1. Identify sales force strategies to plan and implement sales force tasks.............................11
3.2. Identify how to deal with an internal and external environment in sales force planning. .12
3.3. Use financial and non-financial information to assess the scope of resource requirements
...................................................................................................................................................12
3.4. Evaluate the impact of sales forecasting on sales targets...................................................13
3.5. Plan the use of resources to meet sales target....................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Sales Force Management can be defined as the sub system of marketing administration. It
is a discipline of business which emphasize on practical execution of techniques of sales and
administration of sales operations of an organisation. The translation of marketing plan into
performance is done through management of sales force within firm. It is the process of creating
the sales force, coordinating the operations associated with sales and executing techniques that
enables a business to hit and surpass the sales target consistently (Anca and Daniel, 2012). This
report is based on Tesco Plc which is one of the well known grocery retailer and general
merchandiser of Britain. The company was founded around 100 years ago, in year 1919 and is
headquartered in London, United Kingdom. The firm perform its operations in many countries
and has around 6800 stores. It offers variety of products including furniture, toys, books,
electronics, clothing, petrol, financial services, internet and telecom services.
This report covers benefits of managing excellent relations with customers and different
working methods and practices to maintain relationship with customers. It also includes
utilization of technological factors to enhance sales force administration practices and personal
characteristics of sales person motivation. Moreover, elements of sales performance model are
analysed along with cultural forces that impacts the performance of sales person. Apart from this,
the criteria for selecting salespeople and strategies to plan and execute sales force tasks are
determined. In addition to this, the way to deal with intrinsic and extrinsic environment in sales
force planning and use of non-financial and financial information to assess resource requirements
scope are included. At last, this project covers the influence of sales prediction on sales target
along with planning of resources utilization to mitigate sales target.
TASK 1
1.1. Identify the benefits of managing excellent customer relations
Managing the relations with customers is an approach that organisations employ in order
to manage interactions with customers. It includes principles and practices that a company
follows while interacting with consumers (Jelinek, 2013). Managing an excellent relation with
customers helps in retaining them for longer term within firm and maintaining large consumer
base. Tesco Plc is one of the leading retailer of UK that offers variety of grocery products to
customers. In order to attain high profitability and sustain business performance for longer term,
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it is crucial for firm to maintain healthy relation with its customers. It provides variety of benefits
to company including high profitability, competitive advantage in market, improved brand image
etc. Some of the benefits for Tesco Plc of managing and maintaining excellent customer relations
are mentioned below:
Enhance customer loyalty: if the relation of firm with customers are good, it will help in
improving customer satisfaction and gaining their loyalty. Good relations with customers
keep them motivated and encourage them to stay loyal for the brand. In Tesco, the
management mainly emphasizes on maintaining strong relation with customers so that
they stay engaged with the firm and remains loyal towards it (Coughlan and Joseph,
2012).
Reduce market rejection: good relation with customers reduces the chances of market
rejection. If the product of company is good, but its relation with its customers is not
effective, then the organisation is not able to retain customers for long term and resulted
in high market rejection. Tesco maintains good relations with its customers which help it
in reducing the chances of market rejection.
Increase customer base: customers are the key to success for businesses as they play
crucial role in growth and sustainability of an organisation. if the relation of company is
good with its customers, it will help in attracting them more towards firm. Excellent
customer relations in Tesco ensures high level of satisfaction and increase customer base
within firm.
Maximize profitability and revenues: more number of customers will ensure more
profitability of company. Good customer relation help company in maintaining large
consumer base. This will in turn results in increasing sales of Tesco which ultimately
maximize its profitability as well as revenues (Powers, Jennings and DeCarlo, 2014).
1.2. Evaluate different working practices and methods to maintain customer relationship within
the organisation
Customer Relationship depicts the ways that an organisation employ to engage with its
consumers in order to enhance their experience. It is very crucial for companies to maintain good
customer relationship by employing various working methods and practices. This is most
important to ensure constant growth and success of company in market. In Tesco Plc, it is
necessary for manager to use distinct practices and methods of working in order to maintain
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good relationship with customers in organisation (Rollins, Rutherford and Nickell, 2014). Some
of the working methods and practices in context of Tesco Plc are mentioned below: Open communication with customers: Effective communication is the key to any good
relationship. in order to maintain good relationship with customers,it is necessary for
company to ensure that they have effective communication with them. Tesco use various
communication mediums like messages, emails, social media etc. In order to interact with
customers and ensuring good relations with them. Ask for feedback: If customers gets various communication methods, the chances of
remaining loyal towards company increases. In order to maintain good relation with
customers, Tesco ask for feedback to its customers on regular basis as this helps in
improving its services. Feedbacks helps in knowing needs and requirements of customers
which helps company to offering better products and services to them (Balboni and
Terho, 2016). Reward loyal customers: the growth and success of any organisation highly rely on its
customers. If customers are happy, then company will be able to enjoy high profit ratios
in the market. Tesco reward its loyal customers by rewarding them with additional
benefits and discounts. this will help company in maintaining strong relations with them.
Develop trust through increasing transparency: The foundation of any relationship is
trust. In order to maintain long term relation with customers, it is necessary to develop
trust among them. By providing high quality products and services to customers and
bringing transparency in its policies and procedures, Tesco will be able to develop their
trust in company (Uduji and Ankeli, 2013).
1.3. Identify the use of the technological forces improve sales force management practices
In current competitive business environment, technological forces plays crucial role in
improving sales force management practices within Tesco Plc. Some of the technological forces
are mentioned below:
Sales Force Automation Systems: Automation in businesses is very necessary as it helps
in saving time and resources of firm in planning and defining processes. In companies, selling
needs numerous repetitive and time consuming tasks like updating sales opportunities,
scheduling sales appointments etc. which reduce productivity and profitability of company. The
sales force automation technology helps in automating many tasks in Tesco Plc and freeing up
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sales force to emphasize on such activities that yield more revenues and sales. It enables sales
officer of firm to keep their teams updated on any information regarding products and services.
This will also assists in improving management of sales force within firm (Hammond, 2017).
Video Conferencing: This is the another technological way that helps company in
improving sales force management within firm. Video conferencing makes it easy for sales
officer to manage its entire sales team virtually. Expensive and big equipments are used in
video conferencing and provides an advantage to sales officer whose people work remotely. It
supports sales officer of Tesco Plc in managing the sales force team effectively within the firm
even from distant places.
Mobile devices: Today, all the sales people are using mobile devices, laptops, ipads as
well as other devices which assists them in performing their daily tasks during the selling. For
instance: use of sales acceleration software can help in sending out questions to mobile device
of sales person in the form of sales scenarios of real world. It enables sales force to submit
responses and sales officer of Tesco Plc can view the performance of a sales team in regards of
skills and concepts. This helps manager in determining a skill gaps and put their efforts towards
developing those (Fu, 2015).
TASK 2
2.1. Identify the personal characteristics on salesperson motivation
A good sales person have various qualities that makes them different from the ordinary
person. They are highly equipped with skills and knowledge which help them in performing their
duties well and attaining personal as well as organisational goals. They have the potential to
convince customer, communicate with them appropriately, build rapport and sell them products.
Sales person have some personal characteristics which helps them in stay motivated and perform
their duties well (Schwepker Jr, 2015). Some of the characteristics of sales person of Tesco
Plc are mentioned below:
Outstanding communication skills: An excellent sales person have effective
communication skills that helps them in convince customers more easily to buy products and
services of company. Besides good communication, they also have good control on their speech
and have knowledge about how to interact with different types of customers. These skills of a
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sales person of Tesco helps in keep them motivated and maintaining good relations with
customers.
Product knowledge: A good sales person is knowledgable and have each and every
detail of the product they sell. Sales force have knowledge about product use, systems,
operations and mechanics. This helps them in presenting the information to customers very
confidently and convince them to make purchase. The knowledge of sales person of Tesco Plc
keep them motivated which helps them in completing targets and goals of company.
Hard working: A good sales person is very hard working and ensure that sale does not
stop at the deal ending. As long as the consumer utilize their services, the sale continues. Good a
sales people understands the needs and requirements of customers as well as their issues and try
their best possible for resolving the issues (McClaren, 2013). In performing their role, they are
supported by engineers, top management as well as inside sales team. When they encounter
problems of customers, they get help of support team in resolving those issues.
Empathy: In sales equation, it is the prime ingredient as selling includes objections,
questions and concerns. A sales person requires to be flexible and empathic enough to adjust
his/her approach as well as presentation. The confidence of sales force that they can understand
the requirements of individual consumer and provide or sell them suitable solutions is very
crucial to internal motivation. The sales people in Tesco Plc are empathic and able to develop
lasting and real connections with consumers.
2.2. Critically analyse the components of salesperson performance model e.g. behaviour, role
perceptions, and satisfaction
Sales performance model is a framework that states that the performance of a sales
person is basically the function of five factors including aptitude, motivation, skill level, role
perceptions and environmental, organisational and personal variables. There is significant
interaction among these variables (Merk, 2014). Numerous forces combine multiplicatively in
order to influence the performance of sales people.
The role perception concept: In an organisation, the role of sales person represents
numerous behaviours or activities to be perform by them for acquire the position. It is largely
defined by pressures, demands and expectations communicated to sales force by their role
partners. The perceptions of sales person of these expectations are strongly influence the role of
individual in company and their behaviour on job. Three components involved in role
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perception concept, that are role accuracy, role ambiguity and perceived role conflict. These
components have psychological consequences for sales people and can develop dissatisfaction
among them with their job (Román and Rodríguez, 2015). Their motivation is also affected by
role perception variables which results in high turnover and poor performance of sales people in
Tesco Plc.
The aptitude concept: As per this concept, two people with similar role perceptions,
motivation and skills may perform at distinct levels as one individual has much ability or
aptitude than other. The aptitude or sales ability is the function of psychological and personal
characteristics like mental abilities including mathematical and verbal intelligence; physical
factors involving age, physical attractiveness, height etc.; and personality characteristics
involving sociability, empathy, dominance, ego strength etc. The aptitude variable may influence
the performance of sales force of Tesco Plc in many ways by moderating the ability of individual
to do job. It also affects the motivation, intelligence and perceptions of sales people regarding
their own ability (Tan and Newman, 2012).
The skill level concept: It depicts about the learned proficiency of individual at
performing required tasks. Skills are referred as the proficiency level that can alter rapidly as the
individual gains experience and learning. The skills level of a sales person is influence by
extensiveness of sales training programme of Tesco Plc and their past selling experience. Some
common skill variables associated to past performance includes interpersonal, vocational,
general management, sales presentation skills and vocational esteem.
The motivation concept: It is defined as the inner urge of an individual to do
something. It is viewed as the efforts that sales people desires to expend in each task and activity
of their job. The motivation of a sales person can be the function of expectations and valances for
performance. The willingness of an individual to engage in particular behaviours or expend
efforts on particular activity and task can be influenced by valence, instrumentality and
expectancy perceptions (Piercy, Cravens and Lane, 2012). These may vary from one sales
individual to other and can be influenced by the actions and behaviour of sales manager of Tesco
Plc with sales person.
The environmental, organisational and personal variables concept: These variables
affects the sales performance in two ways. One by directly constraining or facilitating
performance and other by interacting and influencing with other determinants of performance
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like motivation, aptitude, skills and role perceptions. This dimension includes rewards and
satisfaction that an individual gets in turn of their performance. The job performance of a sales
person of Tesco Plc is highly influenced by rewards which he/ she receive and their satisfaction
level completely rely on it. Rewards and satisfaction improves the motivation level of employees
and helps company in retaining productive sales people for longer term (Samaraweera and
Gelb, 2015).
2.3. Critically identify the cultural forces affecting the performance of salespeople
Cultural factors are defined as the set of traditions, beliefs, moral values, laws, language
etc. held in common by community, nation or other group of people. There are various cultural
forces that influence the performance of sales person in both positive and negative way. In
context of Tesco Plc, the cultural factors that impacts performance of sales force are mentioned
below:
Competition: Personal achievement is the driver of competitive culture. In this, much
internal competition exist that may form mini cultures or unhealthy cliques surrounding super
performers of sales. Competitive culture within firm favours the performance of sales people
more. Competition among members of sales team influence their performance within firm. If
company provides benefits to some top performers in each quarter then, the outcome could be
more individualistic or competitive culture. The manager of Tesco plc could emphasize more
resources over team based metrics in order to ensure that each sales person had a stake in success
of company. This helps in improving performance of sales people within firm.
Sales ethics: The ethical standard of sales force are shaped by the culture. If the team
members see their team leaders acting unethically, they also will do the same thing. If they see
individuals earn rewards by unethical behaviour, if sales people are trained in a way to act
unethically, then it will impact the performance of sales force in adverse way. In this situation,
administrator of Tesco Plc can leverage a strong ethical culture within firm in order to encourage
and motivate team members to embody the standards of company (Mantrala and Albers, 2012) .
Power Distance Index: This factor depicts the degree to which inequality as well as
power are tolerated. These both the dimensions are viewed as the perception of sales people
within firm. If there is high power index, then it depicts that the culture of organisation accepts
power differences and inequity, high respect for authority and rank and encourages bureaucracy
within firm which negatively influences the performance of sales people. On the other hand, if
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the power distance index is low then, it depicts that the culture of company encourages flat
organisational structure, participative management style, decentralized responsibility of decision
making and more focus on distribution of power which influence the sales person's performance
in positive way within Tesco Plc.
2.4. Critically evaluate criteria of selecting the best salesperson to target international market
Sales person vary according to the nature of selling situation and the products and
services to be sold. In order to target international market, it is necessary that a company has best
salespersons as they highly contributes in its growth and success. Thus, for targeting
international market, it is necessary for firm to select the sales person carefully (Tan and
Newman, 2013). The sales officer needs to emphasize on selection of those individuals who
have adequate knowledge about the international market and possess good communication skills
to understand appropriately the needs and requirements of customers. In order to select the best
sales person, there is some specific criteria that requires to follow by sales officer of Tesco Plc
while selecting candidates. While targeting the internation market, company first requires to
understand the complexities involved in selling products into that market. It is necessary for
company to taken into consideration that language, culture, needs and requirements of people of
each country are different and the sales person they select will have proper knowledge about that
nation. They are familiar from language of that country as this helps them in understanding the
requirements of market appropriately and offering products accordingly. The sales officer
requires to hire candidate from own country who is able to speak the language of target market
fluently. The reason behind hiring locally is to make the sales people a part of team initially,
before sending them in international market to sell products (Miao and Evans, 2014).
The company requires to interview the job in order to acquire the criteria for key sales
position. It is necessary for sales manager to list the criteria like experience in industry,
education level and other credentials. After that, the company requires to determine the sales
target that firm wants to attain and considers what makes it distinctive from others and how does
it get success. Apart from that, the culture of company highly influence the selection criteria of
sales people. Manager requires to ascertain that which kind of sales people thrive in culture of
company. At last, for defining the selection criteria, manager requires to combine the corporate
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culture with ideal traits. There are some traits of the best sales person which requires to consider
by sales officer of Tesco plc to target international market. These traits includes:
Attitudes needed for individual to thrive in particular culture and sales job.
Behaviours necessary to sell products to customer or client
Skills which are essential to thrive in sales environment of company.
Personality traits like competitiveness, sales grit, resilience, persistence, or precision.
All the above mentioned traits require to be consider by sales officer of Tesco plc in order
to select best sales people within organisation to target international market (Sultan, 2013).
TASK 3
3.1. Identify sales force strategies to plan and implement sales force tasks
Each organisation wants to attain growth and success in market by generating higher
sales and revenues. In order to accomplish the same, there are some strategies that requires to be
frame by sales officer of Tesco Plc in order to plan and execute the tasks of sales force in proper
way. Some of the strategies are mentioned below:
Use sales-friendly CRM system: An effective customer relationship management system
within company can help the sales team to stay focused and organised. The features of system
like automatic reminders, lead prioritization, notes and lead nurturing, helps in increasing the
closing ratio of sales team and improving their productivity. Use of sales focused CRM system
helps sales officer in planning and executing the tasks of sales force in an effective and efficient
way (Rodriguez, Peterson and Krishnan, 2012).
Prioritize the work: It is an another strategy that requires work prioritization. Sometimes,
the paper work and meetings are often eclipse the more crucial tasks of developing relationships
with customers. For maintaining control of priorities, it is necessary for sales force team to spend
some time in planning the tasks that requires to perform the next day. Proper planning will helps
sales team of Tesco Plc in implementing the tasks in proper way and accomplish desired results.
Offer regular training opportunities: Investing some amount in providing training to
employees will help in making the organisation more productive. It is very necessary for
organisation to provide regular training to employees as this helps in enhancing their
competencies and potential to perform their tasks and duties more effectively. Providing
technical training regarding products and services, gathering teams together annually, sales
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process training etc. will helps sales force of Tesco Plc in implementing their tasks properly and
providing measurable return on investment to company (Zoltners, Sinha and Lorimer, 2012).
3.2. Identify how to deal with an internal and external environment in sales force planning
In current competitive business environment, there are numerous internal and external
factors that influence sales force planning of company. The internal factor includes culture of
organisation, strengths and weaknesses, organisational structure, resources, capabilities,
management values etc. and the external factors involves macro forces like political, social,
economical, legal, technological factors, competitors, customers, labour market etc. that
influence the activities and operations of business. While doing sales force planning, it is
necessary for sales officer of Tesco Plc to taken into consideration these factors and their impact
so that adequate strategies can be formulated in order to deal with those effectively. At the time
of a sales force planning company requires to company requires to consider capabilities of
organisation and accordingly plan sales force which helps in accomplishing sales targets of
company (Gilliam and Flaherty, 2015). In order to deal with internal and external environment,
company requires to hire candidates with right skills mix who are able to perform tasks and
activities associated with sales effectively. Labour market, competition etc. are the external
factors that needs to consider by manager. In order to deal with these, firm requires to provide
training to its sales force team on regular basis in order to update their knowledge and skills and
make them capable to deal with changing situations effectively. This will help company in
improving its sales and revenues and gaining competitive advantage in market.
3.3. Use financial and non-financial information to assess the scope of resource requirements
Financial information refers to data regarding monetary transactions of an organisation.
This information is utilize to drive credit risk estimation by lenders and creditors. The non
financial information is the data that requires to measure non financial performance of company.
It is the disclosure of human rights, social and environmental information of firm (Andzulis,
Panagopoulos and Rapp, 2012). As per the annual report of Tesco, the overall sales of company
is increased by 11.5% in year 2019. The total profit of company in year 2019 is 1320 million
pounds. In United Kingdom, the total sales of company is 38,656 million pounds and revenue is
44,914 million pounds in 2019. As per the auditor's report, the company requires economic
modelling experts in order to managing the Brexit scenarios. From the store impairment review,
company requires to hire skilled store managers that helps it in managing its store in effective,
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efficient and innovative manner. According to cash flow statement of company, the net cash
generated at the end of year is 1873 million pounds in 2019 which depicts that the firm requires
cash. As per the balance sheet of Tesco, the investment property is 36 millions pound in 2019
which is less than year 2018. This depicts that company requires to invest more in investment
property (Johnston and Marshall, 2013).
3.4. Evaluate the impact of sales forecasting on sales targets
Sales forecasting refers to the process of anticipating future sales. Appropriate forecasting
of sales helps company in making informed decisions regarding business and predicting long
term and short term performance. It helps retailers in deciding on the types of products they
require to stock. The sales forecast of company are based on past data of sales, economic trends
and industry wide comparisons. For a well established company, it is easy to anticipate future
sales on the basis of business data of past years. It gives insight on the way a firm must manage
its human resource, cash flow and other resources. Apart from this, sales forecasting also assists
business entity like Tesco Plc in allocating its internal resources in an appropriate way. At the
time when company is looking to get investment capital, predictive sales data or information is
very crucial for it (Coughlan and Joseph, 2012). Sales forecasting allows Tesco to assign
resources effectively, anticipate achievable sales revenue and planning for future growth. For all
the areas of business, sales forecasting is vital. It helps finance department in establishing right
investment priorities. By the sales forecast, the sales officer can determine the expected decline
or growth in sales. It enables managers to compare forecast with targets and clarifies the way
promotions are expected in order to increase the sales. Forecasting highly impacts the sales
targets. Sales forecast enables a company to spot potential problems or issues when there is time
to eliminate or mitigate those. This helps sales manager in formulating appropriate strategies
that helps firm in mitigating its sales target in an effective and efficient manner.
3.5. Plan the use of resources to meet sales target
In order to meet the sales target successfully, it is required by sales manager to do proper
planning regarding a utilization of resources. It is required by them to ensure that all the
resources are utilized optimally whether it is financial, human or physical resource. Proper
implementation of sales techniques helps company in meeting its sales goals effectively
(Powers, Jennings and DeCarlo, 2014). The sales officer of Tesco Plc is required to manage
sales targets by breaking down the yearly goal into weekly, monthly and quarterly goals. It also
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needs to measure the sales activities as it helps them in determining the improvement areas so
that corrective actions can be taken in order to improve the sales performance of company. It is
the responsibility of sales manager to ensure that all the resources that are needed to mitigate
sales target are use in proper way. The allocation of funds in each activity associated with sales
needs to done in proper way so that sales person will be able to perform their sales activities
appropriately and successfully (Rollins, Rutherford and Nickell, 2014). In addition to this, in
enhancing the sales, marketing resources also plays vital role so, managers are require to ensure
that the promotional channels used by company to promote its products and services are
appropriate. An appropriate sales strategy assists company in meeting its sales targets
appropriately. Apart from all these, the company needs to ensure that it has adequate number of
sales force that helps in attaining its sales targets. Providing proper training to sales force helps
in developing their skills and competencies which ultimately helps firm in accomplish its sales
targets effectively.
CONCLUSION
As per the above mentioned report, it has been concluded that sales force management
is the a procedure of developing effective sales force within company, coordinating sales
operations and implementing techniques or approaches that allows business entity to
accomplish the sales target consistently. A company gets various benefits from maintaining
good relations with its customers such as improving customer loyalty, enhancing sales, reducing
chances of market rejection etc. The working practices like rewarding loyal customers, open
communication etc. helps in maintaining good relation with customers. There are various
characteristics that sales person have such as empathy, good communication and knowledge that
helps in performing their roles effectively. Different sales strategies requires to implement by
firm as these helps it in meeting its sales targets effectively.
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